Lis Pendens

Lis pendens is a Latin term that means "pending lawsuit." It refers to a lawsuit that has been filed but has not yet been decided. The term is often used in real estate transactions to prevent a buyer from purchasing a property that is the subject of a lawsuit.

When a lis pendens is filed, it is recorded in the public records of the county where the property is located. This means that anyone who searches the public records will be able to see that there is a lawsuit pending against the property. This can make it difficult for a buyer to get financing for the property, as lenders may be reluctant to lend money on a property that is the subject of a lawsuit.

In some cases, a lis pendens can also prevent a buyer from taking possession of the property. This is because the court may order that the property be held in escrow until the lawsuit is resolved.

There are a few exceptions to the rule that a lis pendens can prevent a buyer from purchasing a property. For example, if the buyer is not aware of the lis pendens when they purchase the property, they may be able to get the lawsuit dismissed. Additionally, if the buyer is able to prove that they would have purchased the property even if they had known about the lis pendens, they may also be able to get the lawsuit dismissed.

If you are considering purchasing a property that is the subject of a lis pendens, it is important to speak to an attorney to discuss your rights and options.