What is a Lis Pendens?

A lis pendens is a Latin phrase when interpreted means litigation pending. It is documented burden that implies litigation is pending as it relates to an estate or interest in specific property. It is registered, so the seller doesnt transfer the property to a third party. So that the buyer gets jilted, and the seller avoids the buyers claim.

How Does a Lis Pendens Work?

A lis pendens is a recorded notification, which in U.S. law, indicates a lawsuit has been entered regarding real estate, which either involves a claimed ownership interest in the property or the title. Generally, the note gets filed in the land records office of the county. If court proceedings have an impact on a partys interest in lands, the countering party can register a lis pendens. Judicial oversight is not necessary for registering. It is solely institutional or administrative. After registration, the sale of the property to a third party who unfailingly needs a fresh title before the sale closure. Until the lis pendens is removed, any attempts by either the receiver or chargeholder to dispose of the property is completely impeded. When an involuntary lien gets imposed on property it is called a judgment lien. This applies to real estate. A lien is a claim or right on the property belonging to another party. When someone wins a lawsuit for monetary damages and has not been compensated yet, a judgment lien is created. To protect the interests of the seller, in all fairness, a bond has to be posted. With the lis pendens in effect, the owner most times is not permitted to mortgage or sell the property.

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