Rule of list pendens Overview
Purpose:
Lis pendens serves to provide notice to potential buyers, lenders, and other parties that a property is involved in a pending legal action. This notice helps protect the rights of the parties involved in the litigation and any subsequent purchasers or lenders who may be affected by the outcome of the case.
Filing Requirement:
In most jurisdictions, to initiate a lis pendens, a party involved in a lawsuit concerning real property must file a notice or document with the appropriate government office (typically the county recorder's office or land registry office) where the property is located. This notice includes details about the pending lawsuit, such as the names of the parties, the nature of the dispute, and the property involved.
Public Record:
Once filed, the lis pendens becomes part of the public record, accessible to anyone interested in the property. It is typically indexed under the property's legal description or parcel number.
Effect on Title:
The filing of a lis pendens effectively clouds the title of the property, meaning that it puts a potential cloud on the property's ownership rights. This cloud on the title can deter potential buyers or lenders from transacting with the property until the lawsuit is resolved.
Notice to Interested Parties:
By providing notice of the pending litigation, lis pendens protects the interests of both the parties involved in the lawsuit and any third parties who may have an interest in the property. For example, if someone is considering purchasing or financing the property, the lis pendens alerts them to the potential risks associated with the transaction.
Duration:
The lis pendens remains in effect until the underlying lawsuit is resolved or until a court orders its removal. In some cases, if the lawsuit is dismissed or if the property is no longer at issue in the litigation, the party who filed the lis pendens may be required to remove it from the record.
Challenging Lis Pendens:
In certain circumstances, interested parties may challenge the validity of a lis pendens filing. For example, they may argue that the lawsuit does not actually involve the property in question or that the filing was made in bad faith. Courts will evaluate such challenges based on applicable laws and legal principles.
Overall, the rule of lis pendens serves as an important mechanism for ensuring transparency and protecting the rights of parties involved in real property disputes, as well as those who may be affected by such disputes.
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