What Does Lis Pendens Mean in Real Estate?

In real estate, "Lis Pendens" is a Latin term meaning "suit pending." It refers to a public notice that a lawsuit has been filed concerning a property’s title or ownership. Here's a breakdown:

What It Means

• Lis Pendens is a legal document recorded with the county recorder's office.
• It notifies anyone interested in the property (buyers, lenders, etc.) that there's a pending legal action that could affect ownership or use of the property.

Common Reasons for a Lis Pendens

• Foreclosure proceedings
• Divorce disputes over property
• Contract disputes over sale or ownership
• Boundary or title disputes

Why It Matters

• It clouds the title, meaning the property can’t be easily sold or refinanced.
• Potential buyers or investors are warned that litigation may impact their rights if they purchase the property.
• If the plaintiff wins, the court's decision can alter who owns or controls the property.

Example

If a lender sues a homeowner for foreclosure and files a lis pendens, it warns the public that this property is tied up in litigation and might be repossessed or sold under court order.