Lis pendens is a Latin-derived legal term that refers to a written notice that a lawsuit has been filed against a parcel of real property, either disputing its ownership or claiming an interest in the property. Since a lis pendens is filed against the property itself rather than the owner of the property, the presence of a lis pendens notice can drastically reduce the marketability of the property – after all, anyone who purchases the property will also be purchasing a lawsuit.
When a Lis Pendens Can Be Used
A lis pendens is required in the following types of lawsuits:
● Partition (division of the property between two or more interest holders);
● Eminent Domain (confiscation of the property by the government for public purposes with fair compensation);
● Quiet Title (an action to clarify the identity of the legal owner of the property whose ownership is in dispute);
● Claims to Escheated Property (claims against abandoned property);
● Forfeiture Proceedings (forfeiture of property to a creditor); and
● Actions to Declare a Building Uninhabitable.
The use of a lis pendens is discretionary in certain other types of actions including a mechanic’s lien, foreclosure actions, separation of property incident to divorce, actions to enforce easement rights, and actions to compel the sale of the property under a real estate contract.
Formal Recordation of a Lis Pendens
To record a lis pendens on a parcel of real estate:
● The notice must either be signed by a lawyer or approved by a judge if the recording party is not represented by a lawyer;
● The notice must be sent by registered or certified mail to all of the parties listed in California Code of Civil Procedure Section 405 et. seq.; and
● A “proof of service” needs to be appended to the lis pendens to prove that notification was delivered to the appropriate parties listed in the California Code of Civil Procedure.
Improper Filing of a Lis Pendens: The Potential Liability
The assistance of an experienced real estate attorney is never more important than when you are considering recording a lis pendens against a property in relation to a lawsuit for which the use of a lis pendens is discretionary rather than mandatory. If you file a lis pendens improperly, you could end up subjecting yourself to significant civil liability. To properly prepare, serve, and record a lis pendens, you must strictly observe certain procedural requirements.
If you improperly record a lis pendens, the property owner might be able to sue you to recover legal fees for the cost of filing a Motion to Expunge Lis Pendens in order to remove it; alternatively, he could force you to post a monetary bond in order to maintain the lis pendens.
It’s Never Too Early to Seek Legal Advice
When it comes to real estate disputes, it is best to seek legal assistance as soon as you smell a whiff of trouble. On the other hand, retaining a lawyer at any stage of the dispute resolution process is likely to benefit you greatly. Call or visit CKB Vienna at one of our offices in Rancho Cucamonga, Riverside, and Los Angeles, or simply complete our online contact form to schedule a consultation where we can examine your circumstances and answer your questions.