Lis Pendens Meaning: Complete Guide to Real Estate Legal Notices

What Is the Meaning of Lis Pendens?

Lis pendens is a Latin term meaning "suit pending" or "lawsuit pending." In real estate, a lis pendens is a formal written notice filed with the county recorder's office that alerts the public to an ongoing legal action involving a specific property.

This legal document creates a cloud on the property's title, effectively warning potential buyers and other interested parties that the ownership or rights to the property are currently being disputed in court.

The notice of lis pendens meaning extends beyond a simple notification. It serves as a powerful legal tool that can prevent property transfers and protect the interests of parties involved in litigation.

When you see "lis pendens" on a property record, it signals that purchasing or dealing with that property comes with significant legal risks.

Lis Pendens Meaning in Real Estate: Why It Matters

Understanding what is the meaning of lis pendens in real estate contexts is crucial for homeowners, buyers, and investors alike.

A lis pendens acts as a red flag in property transactions, fundamentally affecting:

Property Marketability: Once a notice of lis pendens is filed, the property becomes extremely difficult to sell. Most title insurance companies refuse to insure properties with pending litigation, and lenders typically won't finance purchases of such properties.

Ownership Rights: The notice doesn't change ownership immediately, but it establishes a public record that any future transfer of the property could be subject to the outcome of the pending lawsuit.

Third-Party Protection: The primary purpose is to protect the party filing the notice by ensuring that if someone purchases the property during litigation, they do so with full knowledge of the legal dispute and may be bound by the court's final decision.

When Is a Lis Pendens Filed?

A lis pendens can be filed in various legal situations involving real property disputes:

Foreclosure Actions

The most common use of a lis pendens is in judicial foreclosures. When a homeowner defaults on their mortgage and the lender initiates foreclosure proceedings through the court system, filing a notice of lis pendens is typically required. This is mandatory in 22 states that use judicial foreclosure processes.

Below is an illustrative image showing which states require judicial vs. non-judicial foreclosure and lis pendens requirements by state:

The map illustrating foreclosure and lis pendens requirements shows a divide across the U.S. based on the type of foreclosure process primarily used:

Judicial Foreclosure States: These states generally require the lender to file a lawsuit and obtain a court order to complete a foreclosure. They typically use a mortgage as the security instrument.

Examples include: Florida, New York, Illinois, New Jersey, Connecticut, Ohio, and most states in the Northeast and Midwest.

Non-Judicial Foreclosure States: These states allow the lender (or trustee) to foreclose outside of court, provided the mortgage or deed of trust contains a power-of-sale clause.

Examples include: Texas, California, Arizona, Nevada, Washington, Oregon, Georgia, and many states in the West and South.

Lis Pendens Requirements: While specific rules vary by state, generally, lis pendens (a notice of a pending lawsuit affecting property title) is filed in the public record:

It is often required in Judicial Foreclosure states when the foreclosure suit is filed, as it serves as a warning to potential buyers that the property is under litigation.

In Non-Judicial Foreclosure states, the process may or may not require a formal lis pendens notice, as the foreclosure is typically initiated by a Notice of Default or Notice of Sale which provides similar public notice.

Divorce Proceedings

When divorcing spouses dispute the distribution of marital real estate, either party may file a lis pendens to prevent the other from selling or transferring the property before the court determines rightful ownership or equitable distribution.

Estate and Probate Disputes

Heirs contesting a will or trust distribution may file a lis pendens to prevent estate property from being sold or transferred before the probate court resolves the inheritance dispute.

Contract Disputes

Breach of contract cases involving real property often warrant a lis pendens. For example, if a seller accepts your offer but then sells to another buyer, you might file a lis pendens as part of your lawsuit seeking specific performance.

Property Tax Liens

When property owners fail to pay taxes and the taxing authority initiates foreclosure proceedings on a tax lien, a lis pendens may be filed to notify potential buyers of the government's claim.

Boundary and Title Disputes

Neighboring property owners disputing boundary lines, easements, or other title issues may use a lis pendens to preserve their claims during litigation.

How a Notice of Lis Pendens Works

Filing Requirements

To file a notice of lis pendens, specific legal requirements must be met:

1. Active Lawsuit: There must be a pending lawsuit filed in court that directly affects title to or possession of the real property.
2. Property Description: The notice must contain an accurate legal description of the property, typically matching the description on the deed.
3. Parties Involved: The names of all parties to the lawsuit must be included.
4. Nature of Claim: The document must describe the type of claim being made against the property.
5. Recording: The notice must be officially recorded with the county recorder's office where the property is located.
   

Legal Effect and Duration

Once recorded, a lis pendens creates immediate legal consequences. The property remains encumbered by the notice until one of the following occurs:

• The lawsuit is resolved (settled, dismissed, or decided by the court)
• The court orders the lis pendens expunged or withdrawn
• The party who filed it voluntarily withdraws it
• The foreclosure sale (if applicable) is completed

In most states, a lis pendens can remain in effect for the entire duration of the litigation, which may span months or even years.

Finding a Lis Pendens on Property Records

If you're researching a property and want to know whether a lis pendens exists, you have several options:

County Recorder's Office

Visit or contact the county recorder's office where the property is located. These offices maintain public records of all documents affecting real property, including lis pendens notices. Most counties organize these records by property address or assessor's parcel number (APN).

Online Public Records

Many counties now offer free online access to property records. You can typically search by address, owner name, or parcel number to view recorded documents, including any lis pendens filings.

Title Companies

Professional title companies can conduct comprehensive searches that will reveal any lis pendens, along with other title issues. While this service may involve a fee, it provides the most thorough review and is essential before purchasing property.

Real Estate Attorneys

Hiring a real estate attorney to conduct due diligence is advisable for significant transactions, especially if you suspect title issues. Attorneys can interpret complex legal documents and advise on the implications of any lis pendens.

Removing or Expunging a Lis Pendens

If a lis pendens is affecting your property, several methods exist for removing it:

Settlement Agreement

The most straightforward method is reaching a settlement with the party who filed the notice. Once the dispute is resolved, both parties can sign an agreement, and the filing party can record a withdrawal or release of the lis pendens.

Motion to Expunge

Property owners can file a motion with the court requesting expungement of the lis pendens if they believe it was improperly filed.

To succeed, you typically must demonstrate that:

• The underlying lawsuit doesn't affect title to the property
• The claim has no merit or legal basis
• The notice was filed for harassment or improper purposes
• Procedural requirements weren't met when filing

Courts take these motions seriously because an improper lis pendens can cause significant financial harm to property owners.

Posting a Bond

In some jurisdictions, property owners can post a surety bond to have the lis pendens removed or to allow property transfer despite the notice. The bond amount, determined by the court, serves as security to protect the claimant's interests if they ultimately prevail in the lawsuit.

Conclusion of Litigation

When the underlying lawsuit concludes—whether through trial, dismissal, or summary judgment—the lis pendens automatically loses its effect, though a formal release may still need to be recorded.

Lis Pendens in Foreclosure: What Homeowners Need to Know

For homeowners facing foreclosure, understanding the lis pendens is critical:

Judicial vs. Non-Judicial Foreclosure

In judicial foreclosure states, the lender must file a lawsuit and simultaneously record a notice of lis pendens with the county recorder. This puts you and the public on notice that foreclosure proceedings have begun.

In non-judicial foreclosure states (where deeds of trust with power of sale clauses are used), lenders file a "notice of default" instead of a lis pendens. While similar in function, a notice of default is not technically a lis pendens because no lawsuit is required.

Below is a timeline comparison showing typical foreclosure process length with lis pendens (judicial) vs. notice of default (non-judicial)

Preforeclosure Period

From the moment a lis pendens or notice of default is filed until the property is sold at foreclosure auction, the property is considered to be in "preforeclosure." This period varies significantly by state but typically ranges from 3 to 18 months. During this time, homeowners have opportunities to:

• Apply for loss mitigation options (loan modification, forbearance, repayment plan)
• Negotiate with the lender for alternatives to foreclosure
• Sell the property through a short sale
• Refinance with another lender
• File bankruptcy to stop the foreclosure temporarily
• Exercise redemption rights (in some states)

Impact on Your Rights

A lis pendens in foreclosure doesn't immediately remove you from your home. You generally have the right to remain in the property throughout the legal proceedings and, in many cases, until after the foreclosure sale is completed. However, you should not ignore the notice—understanding your options and acting quickly provides the best chance to save your home or minimize financial damage.

Protecting Yourself: Buyer and Homeowner Strategies

For Property Buyers

Before purchasing any property, conduct thorough due diligence:

1. Title Search: Always obtain a professional title search before closing
2. Title Insurance: Purchase owner's title insurance to protect against undiscovered claims
3. Legal Review: Have a real estate attorney review all documents
4. Walk Away Clause: Ensure your purchase contract includes contingencies that allow you to cancel if title issues arise

Never proceed with a purchase if a lis pendens is present without fully understanding the underlying dispute and obtaining legal counsel.

For Homeowners

If you receive notice of a lis pendens on your property:

1. Read Carefully: Understand what claim is being made against your property
2. Respond Promptly: Most legal notices include deadlines for response
3. Seek Legal Counsel: Real estate and litigation attorneys can protect your rights
4. Gather Documentation: Collect all relevant paperwork (deeds, contracts, loan documents, payment records)
5. Explore Options: Consider settlement, motion to expunge, or other legal remedies
6. Act Quickly: In foreclosure situations, early action provides more options

Does a Lis Pendens Affect Your Credit Score?

A lis pendens itself does not directly appear on your credit report and therefore does not directly impact your credit score. Credit bureaus (Experian, Equifax, and TransUnion) typically report items like late payments, foreclosures, bankruptcies, and collections. Not notices of lis pendens.

However, a lis pendens is often tied to serious financial or legal disputes that can indirectly affect your credit:

• Foreclosure Proceedings
  Since lis pendens is frequently filed in judicial foreclosures, the foreclosure itself (once complete) will appear on your credit report. Foreclosures can drop credit scores by 100–160 points and remain for up to seven years.
• Tax Liens or Judgments
  If the dispute involves unpaid property taxes or a court judgment, those can lead to derogatory marks on your credit report, depending on state law and reporting practices.
• Difficulty Refinancing or Borrowing
  Even without a direct credit score hit, lenders often see a lis pendens as a major red flag. It may block refinancing, home equity loans, or sales until the dispute is resolved, which can worsen financial stress and lead to missed payments that do hurt credit.

Bottom Line

• The notice itself: Doesn’t lower your credit score.
• The underlying case (foreclosure, unpaid debt, tax lien, judgment): Can significantly damage your credit and financial standing.

If you find a lis pendens tied to your property, it’s important to address the legal dispute early to prevent it from escalating into a foreclosure, judgment, or other event that will appear on your credit report.

Conclusion: Knowledge Is Protection

The meaning of lis pendens extends far beyond its Latin translation. It represents a critical legal mechanism that protects parties involved in property disputes while providing public notice of ongoing litigation. Whether you're a homeowner facing foreclosure, a buyer conducting due diligence, or someone involved in property litigation, understanding how a lis pendens works empowers you to make informed decisions and protect your interests.

A notice of lis pendens is not something to ignore or take lightly. Its presence on property records signals serious legal proceedings that can affect ownership rights, property value, and transferability. By recognizing the implications early and seeking appropriate legal counsel, you can navigate these complex situations more effectively.

Remember that a lis pendens clouds the title but doesn't determine the outcome. The underlying legal dispute must still be resolved through the court system or settlement negotiations. Acting promptly, understanding your rights, and obtaining qualified legal representation provide your best protection when confronted with this powerful legal notice.