Understanding Lis Pendens

The following information is brought to you by Shawn Harris and Bev Coalson of Stewart Title, in this months newsletter; two very competant and professional Title Representatives.

Shawn Harris
(760) 271-8584
shawn.harris@stewart.com
---------------------------
Bev Coalson
(619) 246-6715
bcoalson@stewart.com
---------------------------
5740 Fleet Street
Carlsbad, CA 92008
 

Lis Pendens is the Latin phrase for pending litigation. More commonly, a "lis pendens" is referred to as a "notice of pending action". Persons who buy or lend on the real estate after a lis pendens has been recorded take the property subject to the claimant's right, if any, to the real estate. The lis pendens, when recorded, is a notice warning all prospective buyers that title to or possession of the real estate is in dispute.

PRESERVATION OF TITLE

The purpose of a recorded lis pendens is to preserve rights to the real estate until the dispute with the owner is resolved. Without the recording of a lis pendens, the person claiming an interest in title or possession to the real estate runs the risk that the owner will encumber or convey the property to an individual who is unaware of the dispute.

When another buyer or lender obtains an interest in real estate before they become aware of a dispute over title, the claimant in the dispute may lose the right to recover the real estate.

RESULT OF LIS PENDENS

A lis pendens affecting title is recorded with the County Recorders office if the lawsuit it references involves a claim to a right in title or possession of the real estate, or the use of easements other than one obtained by statute from a regulated public utility. Title companies usually refuse to insure title unless free of any lis pendens recorded against title. Thus, buyers won't buy and lenders won't lend on the property.