{"id":435610,"date":"2024-01-15T02:46:34","date_gmt":"2024-01-15T07:46:34","guid":{"rendered":"https:\/\/www.houzeo.com\/blog\/?p=435610"},"modified":"2024-08-09T05:29:19","modified_gmt":"2024-08-09T09:29:19","slug":"lis-pendens","status":"publish","type":"post","link":"https:\/\/www.houzeo.com\/blog\/lis-pendens\/","title":{"rendered":"Lis Pendens: What Is It and How to Remove It?"},"content":{"rendered":"\n<figure class=\"wp-block-pullquote\"><blockquote><p><strong>\u270f\ufe0f<\/strong> <strong>Editor&#8217;s Note: <\/strong>Realtor Associations, agents, and MLS&#8217; have started implementing changes related to the NAR&#8217;s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. <strong><a href=\"https:\/\/www.houzeo.com\/blog\/nar-settlement\/\" target=\"_blank\" rel=\"noreferrer noopener\">Learn how NAR&#8217;s settlement affects home sellers<\/a>.<\/strong><\/p><\/blockquote><\/figure>\n\n\n\n<p class=\"margin-top-28\">Real estate disputes are pretty common in the USA. In fact, 2022 saw some of the most significant upticks in real estate lawsuits, or lis pendens. There were <a href=\"https:\/\/www.attomdata.com\/news\/market-trends\/foreclosures\/attom-year-end-2022-u-s-foreclosure-market-report\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">324,237 cases<\/a> of bank <a href=\"https:\/\/www.houzeo.com\/blog\/foreclosures\/\" target=\"_blank\" rel=\"noreferrer noopener\">foreclosure<\/a> actions, a sharp 115% increase from 2021. <\/p>\n\n\n\n<p>That just includes legal action from the lender&#8217;s side. There are plenty of reasons you could have a lis pendens on your home, including non-payment of fees, taxes, and breach of contract. <\/p>\n\n\n\n<p>For sellers looking to get their house on the market, is it still possible to sell in such a scenario? Yes, but there are some caveats attached to the sale. Here&#8217;s everything you need to know. <\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"block-takeaways\"><p class=\"topHead\"><\/p><p class=\"headKeytake\"><b>Lis Pendens: Not a Dead End for Sellers<\/b><\/p>\n<ul>\n<li> A house with a lis pendens can be sold provided the buyer is ready to inherit the lawsuit.<\/li>\n<li> Many buyers and investors purchase properties with lis pendens in an all-cash transaction to bag an affordable deal. <\/li>\n<li> If you think there&#8217;s a false lis pendens on your house, you can also make a legal motion to expunge or discredit it.  \n<\/li>\n<\/ul> \n<\/div>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"meaning\"><strong>Lis Pendens Definition: What Is It?<\/strong><\/h2>\n\n\n\n<p>Lis pendens serves as an official notice that a lawsuit has been filed against a property. It alerts potential buyers about existing legal disputes on the house they intend to purchase.<\/p>\n\n\n\n<p>Similar to a <a href=\"https:\/\/www.houzeo.com\/blog\/what-is-a-lien\/\" target=\"_blank\" rel=\"noreferrer noopener\">lien<\/a> or a <a href=\"https:\/\/www.houzeo.com\/blog\/what-is-a-mortgage\/\" target=\"_blank\" rel=\"noreferrer noopener\">mortgage<\/a>, lis pendens is recorded on the title of your home. You can do a free <a href=\"https:\/\/www.houzeo.com\/blog\/home-title-search\/\" target=\"_blank\" rel=\"noreferrer noopener\">home title search<\/a> at the recorder or county clerk\u2019s office to determine if your property is under litigation.<\/p>\n\n\n\n<p class=\"margin-top-15\">When a property sale occurs amidst a lawsuit, the new owner assumes the legal obligation. For instance, if a bank sues a homeowner for a loan default and someone else buys it, the buyer inherits the lawsuit.&nbsp;<\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"affect\"><strong>How Does Lis Pendens Affect a House Sale?<\/strong><\/h2>\n\n\n\n<p>You can sell a house with a pending lawsuit. But because of the contingencies involved, you will neither be able to find a qualified buyer nor get your home&#8217;s <a href=\"https:\/\/www.houzeo.com\/blog\/what-is-fair-market-value-and-how-to-find-it\/\" target=\"_blank\" rel=\"noreferrer noopener\">fair market value<\/a>. <\/p>\n\n\n\n<p>In such scenarios, it&#8217;s best to accept an all-cash offer, even if it&#8217;s low. That&#8217;s because lenders don&#8217;t approve mortgages to buyers involved in a risky transaction. If you fail to settle the lawsuit before <a href=\"https:\/\/www.houzeo.com\/blog\/selling-a-house\/\" target=\"_blank\" rel=\"noreferrer noopener\">selling the house<\/a>, the potential buyer will inherit it.<\/p>\n\n\n\n<p>You can also build the lawsuit resolution into the home sale. For example, let&#8217;s say you owe $10,000 to a contractor. Here, you can work out an arrangement with your and the buyer&#8217;s attorney to include the cost in the sale price.<\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"remove\"><strong>How to Remove Lis Pendens?<\/strong><\/h2>\n\n\n\n<p>To remove a lis pendens, you can either settle the lawsuit or make a motion to expunge it (or discredit it). You will require an attorney&#8217;s help to go through with the second option. Also, it will cost you a lot. But it will help you get better value for your home.<\/p>\n\n\n\n<p>Once you make a motion to expunge it, the opposing party will have to prove their claim. If they can&#8217;t, then the lawsuit is settled, and you get a clean slate for your property. <\/p>\n\n\n\n<p>But if your motion fails, you will have to settle the lawsuit fair and square. This includes paying your mortgage dues, <a href=\"https:\/\/www.houzeo.com\/blog\/hoa\/\" target=\"_blank\" rel=\"noreferrer noopener\">HOA<\/a> dues, and contractor dues, and settling property tax obligations. <\/p>\n\n\n\t<div  class=\"hfsWidget \" data-widget-title=\"Find the Real Estate Attorney\" data-widget-list-item1=\"1st item\" data-widget-list-item2=\"2nd item\" data-widget-list-item3=\"3rd item\" data-widget-type=\"vendor\" data-widget-vendor-type=\"real_estate_attorney\" data-widget-state=\"US\" data-widget-city=\"\" data-widget-redirect-url=\"https:\/\/www.houzeo.com\/pros\/real-estate-attorneys-near-me\" data-widget-redirect-text=\"Search a Real Estate Attorney Near Me\" data-widget-button-url=\"https:\/\/www.houzeo.com\/pros\/real-estate-attorneys-near-me\" data-widget-button-text=\"Search for a Real Estate Attorney Now\" data-widget-min-price=\"0\" data-widget-max-price=\"0\" data-widget-min-area=\"0\" data-widget-max-area=\"0\" data-widget-sidebar=\"false\">\n       \n    <\/div>\n\t<script>\n    document.addEventListener(\"DOMContentLoaded\", function() {        \n        if (!window.assetsLoaded) {\n            window.assetsLoaded = true;\n            var version = (typeof customData !== 'undefined' && customData.customVersion) ? customData.customVersion : '1.0';\n            loadScript('\/blog\/wp-content\/themes\/houzeo-new-design\/js\/hfs-widget.js?version=' + version);\n            loadCSS('\/blog\/wp-content\/themes\/houzeo-new-design\/css\/hfs-widget.css?version=' + version);\n        }    \n    });\n\t\t\n\t<\/script>\n\t\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"reasons\"><strong><strong>Why Would Someone File a Lis Pendens?<\/strong><\/strong><\/h2>\n\n\n\n<p>Here are some of the circumstances that could lead to a lawsuit on your property:<\/p>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\" id=\"foreclosure\"><strong>1. Foreclosure<\/strong><\/h3>\n\n\n\n<p>Lis pendens most commonly occurs due to mortgage foreclosure actions. This happens when a lender sues a homeowner for defaulting on their mortgage. It notifies creditors and everyone else that the owner is in jeopardy of losing <a href=\"https:\/\/www.houzeo.com\/blog\/title-commitment\/\" target=\"_blank\" rel=\"noreferrer noopener\">title<\/a> to the property.<\/p>\n\n\n\n<p>You can still sell a foreclosed house if a buyer is ready to pay more than what is owed. For the buyer, the sale may take longer, but it isn\u2019t any more riskier than a normal sale.<gwmw style=\"display:none;\"><\/p>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\"><strong>2. Non-payment of Dues<\/strong><\/h3>\n\n\n\n<p>A contractor can file a lis pendens on a house if they weren&#8217;t paid for their work. Let&#8217;s say a painter was hired to repaint a house. However, the homeowner only paid them half the fees. <\/p>\n\n\n\n<p>In such cases, the painter could sue the homeowner for the remaining money they are owed for the work. The contractor would release the lawsuit once you pay the dues. <\/p>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\"><strong><strong>3. Contract Disputes<\/strong><\/strong><\/h3>\n\n\n\n<p>Lis pendens also arise from buyer-seller disagreements in property sales. For instance, let\u2019s say a contract is in place for the sale of a property. However, the seller decides to back out. Here, buyers can file lis pendens to enforce the contract and go through with the sale.<\/p>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\"><strong>4. Divorce<\/strong><\/h3>\n\n\n\n<p>In a divorce, either spouse can file a lis pendens on a shared property. Once filed, it prevents the sale of the property until the court resolves the issue. This ensures a fair division of assets post-divorce and safeguards each party&#8217;s interests.<\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"The-bottom-line\"><strong>The Bottom Line<\/strong><\/h2>\n\n\n\n<p>A lis pendens on your property can complicate the selling process. We recommend you hire a <a href=\"https:\/\/www.houzeo.com\/pros\/real-estate-attorneys-near-me\" target=\"_blank\" rel=\"noreferrer noopener\">real estate attorney<\/a> to help you navigate the legalities, especially if it involves court visits.<\/p>\n\n\n\n<p>Also, if you find out your property has a pending lawsuit amidst the property sale, there&#8217;s no need to worry. You can still sell your house to investors and all-cash buyers, albeit at a slightly lower price. <\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"faq\"><strong>Frequently Asked Questions<\/strong><\/h2>\n\n\n\t\t<div class=\"wp-faq-schema-wrap wp-faq-schema-accordion\">\n\t\t\t\t\t\t<div class=\"wp-faq-schema-items\">\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tCan you sell a property with lis pendens?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>Yes, you can <a href=\"https:\/\/www.houzeo.com\/blog\/selling-a-house\/\">sell your house<\/a> with a lis pendens. However, you'll find trouble finding a buyer as people usually steer clear of such properties. Also, if you do find one, they will have to agree to inherit the lawsuit for the sale to be successful. <\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tHow long does a lis pendens last?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>A lis pendens lasts until you settle the dues associated with the lawsuit. However, you can file a motion to <a href=\"#remove\">remove the lis pendens<\/a> if you think it was wrongfully filed. <\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tWho can file a lis pendens?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>A lis pendens can be filed by anyone who has an interest in the property. Banks can file it for <a href=\"#foreclosure\">foreclosure action<\/a>, spouses can file it for proper distribution of assets, and authorities can file it if you haven't cleared your tax dues. <\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tHow do I find lis pendens on my property\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>You can do a free <a href=\"https:\/\/www.houzeo.com\/blog\/home-title-search\/\">title search<\/a> at the county clerk or recorder's office to find out if your property has a pending lawsuit.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<div class=\"new-excerpt\"><p class=\"small-desc\">Lis pendens is an official notice that a lawsuit has been filed against a property. It alerts buyers about legal disputes on the homes they want to...<\/p><\/div><div class=\"reading_date\"><span class=\"readtime\">5 mins read<\/span><span class=\"date\">Jan 15, 2024<\/span><\/div>","protected":false},"author":102,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46226],"tags":[30792,30790,30791],"class_list":["post-435610","post","type-post","status-publish","format-standard","hentry","category-seller","tag-les-pendence","tag-lis-pendence","tag-liz-pendens"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Understanding Lis Pendens: A Comprehensive Guide for Sellers<\/title>\n<meta name=\"description\" content=\"Lis pendens is an official notice that a lawsuit has been filed against a property. 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