What Happens After a Lis Pendens is Filed?
A lis pendens, Latin for "litigation pending," is a formal notice filed with a court that informs the public about a pending lawsuit affecting the title of real property. Filing a lis pendens essentially puts the world on notice that a legal dispute exists that could impact the property's ownership. But what exactly happens after this crucial document is filed? The process is complex and varies by jurisdiction, but here's a breakdown of the typical steps and considerations.
What is the immediate effect of filing a lis pendens?
The immediate effect of filing a lis pendens is to create a cloud on the title of the property. This means that while the property owner technically still owns the property, the potential for a change in ownership due to the lawsuit creates uncertainty for potential buyers or lenders. This cloud can significantly impact the property's marketability.
How does a lis pendens affect the property owner?
The property owner's ability to sell or refinance the property is severely hampered. Most lenders will be hesitant to provide a loan secured by property with a lis pendens attached. Even if a buyer is found, the sale is likely to be significantly delayed and may require complex legal arrangements to address the pending lawsuit. The owner may also incur legal fees in defending against the lawsuit.
What are the next steps in the legal process after a lis pendens is filed?
After the lis pendens is filed, the legal process continues as normal. This includes:
- Discovery: Both sides gather evidence and information relevant to the case. This may involve depositions, interrogatories, and document requests.
- Motion Practice: Parties may file motions with the court requesting various actions, such as dismissal of the case, summary judgment, or other relief.
- Trial (if necessary): If the case cannot be resolved through settlement or other means, it will proceed to trial. The outcome of the trial will determine the fate of the property and the resolution of the dispute.
Can a lis pendens be removed or expunged?
Yes, under certain circumstances, a lis pendens can be removed or expunged. However, this is typically a complex process that often requires court approval. Reasons for removal might include:
- The lawsuit is dismissed: If the plaintiff voluntarily dismisses the case or if the court dismisses it due to lack of merit, the lis pendens should be removed.
- The case is settled: If the parties reach a settlement agreement, the lis pendens can be removed as part of the settlement.
- The lis pendens was improperly filed: If the court finds that the lis pendens was filed without proper legal basis, it can order its removal.
The process for removing a lis pendens varies by jurisdiction and requires careful legal navigation.
How long does a lis pendens remain in effect?
The duration of a lis pendens depends on the length of the underlying lawsuit. It remains in effect until the case is resolved through settlement, dismissal, or trial.
What if the property is sold while a lis pendens is in place?
The sale of the property while a lis pendens is in effect does not automatically remove the lis pendens. The buyer will likely inherit the legal cloud on the title and the potential impact of the lawsuit. This significantly affects the buyer’s ability to utilize the property fully.
What are the potential consequences of ignoring a lis pendens?
Ignoring a lis pendens can have serious consequences. The court may enter a default judgment against the property owner, potentially leading to the loss of the property. It’s crucial to address a lis pendens promptly and seek legal counsel.
In conclusion, filing a lis pendens has significant consequences for all parties involved. It creates a legal cloud on the title of the property, potentially hindering sales and financing. Understanding the process and seeking legal advice is crucial for both plaintiffs and defendants navigating this complex legal procedure. This information is for general understanding and should not be considered legal advice. Consult with a qualified legal professional for guidance specific to your situation.
