Lis Pendens, Latin for "suit pending," is a vital legal notice recorded in real estate disputes. It publicly alerts potential buyers or lenders that a...
It is a Latin term meaning "suit pending." It serves as a legal notice indicating that a lawsuit directly affecting the title or ownership rights of a specific piece of real estate is currently ongoing.
A plaintiff files a Lis Pendens to give public notice, particularly to potential buyers or lenders, that a property is involved in active litigation. This protects the plaintiff's interest by ensuring any subsequent transaction is subject to the lawsuit's outcome.
It creates a significant cloud on the property's title, making it extremely difficult to sell, refinance, or obtain clear title insurance. Most buyers and lenders will avoid properties with an active Lis Pendens.
A Lis Pendens is typically removed when the underlying lawsuit is dismissed, settled, or a final judgment is issued. The party who filed it, or the court, then records a formal release or cancellation of the notice.