Definition
Lis pendens, a Latin term meaning “suit pending,” is an official notice filed in the public record indicating that a lawsuit involving a claim on a real property has been filed. This notice serves to warn potential buyers or financiers that the property in question could be subject to legal disputes, thereby potentially affecting its ownership or use.
Legal Definition: Lis pendens refers to the doctrine that the jurisdiction, power, and control of the court over a property involved in litigation continues, or “hangs,” until the final judgment of the case.
Purpose and Legal Implications
Notification to the Public
The primary purpose of lis pendens is to provide public notice of an ongoing lawsuit over a specific property. It protects the plaintiff’s claim against the property by notifying any prospective purchaser or lender that they take the property subject to the outcome of the litigation.
Effect on Property Transactions
A property with a lis pendens notice cannot be easily transferred or used as collateral because potential buyers and lenders are unlikely to assume the risk associated with unresolved legal disputes.
Legal Implications
The filing of a lis pendens has significant legal implications. It:
- Preserves the status quo: It prevents the transfer of property ownership until the litigation is resolved.
- Creates a cloud on the title: It means that the property’s title is no longer clear and may require judicial intervention to resolve.
- Affects property value: The marketability and value of the property can be adversely affected due to the legal uncertainties.
Examples of Lis Pendens
Real-World Example 1
Imagine a scenario in which two parties are disputing the ownership of a prime real estate property. Party A files a lawsuit claiming that Party B obtained the property through fraudulent means. By filing a lis pendens, Party A ensures that Party B cannot sell or further mortgage the property until the court resolves the dispute.
Real-World Example 2
Consider a case where a homeowner is in default of their mortgage, and the bank begins foreclosure proceedings. The bank may file a lis pendens to notify any potential buyers that the property is involved in foreclosure litigation.
Historical Context
Origin and Evolution
The concept of lis pendens dates back to Roman law and has evolved through English common law into the present-day legal systems. Historically, it served to ensure public trust and transparency in property transactions by disclosing legal disputes.
Notable Cases
One notable case involving lis pendens is Clark v. Clark (1964), where the court ruled that a properly filed lis pendens was sufficient to bind future purchasers to the outcome of the lawsuit, emphasizing its role in legal proceedings involving property disputes.
Related Legal Concepts
Encumbrance
An encumbrance is a claim, lien, charge, or liability attached to and binding real property. Like lis pendens, an encumbrance affects the usability and transferability of property.
Quiet Title Action
A quiet title action is a lawsuit filed with the intent of establishing ownership of property. Removing a lis pendens often necessitates this legal process to clear the title.
Title Search
A title search is an investigation into the history of property ownership. A lis pendens would be revealed during such a search, alerting potential buyers to the pending litigation.
FAQs
Is Lis Pendens the same as a lien?
How long does Lis Pendens remain effective?
Can Lis Pendens be removed?
References
- Black, H.C. (1990). Black’s Law Dictionary. St. Paul, Minn: West Publishing Co.
- Singer, M. (2017). Real Estate Principles. Irvine: Rockwell Publishing.
Summary
A lis pendens is a crucial legal mechanism within the real estate and judicial system, serving to inform the public of pending litigation that may affect property ownership or use. Understanding its implications, examples, and related terms can help navigate the complexities of property transactions and legal disputes.
