Lis Pendens: An Anchor Preventing a Sales Transaction

I wanted to discuss an important tool that I use frequently in my real estate practice. Lawsuits can take a long time to obtain a judgment. In Fresno County, it is not uncommon for a lawsuit to take almost two years. In Kings, Madera and Tulare County, lawsuits usually take more than a year to reach trial. If the lawsuit involves real property, recording a Lis Pendens is a great tool  that can prevent a property from being sold to a bona fide purchaser before a judge or jury can decide the case.

A Lis Pendens to real property is like anchor is to a boat in water.  An anchor prevents a boat from drifting in water.  A Lis Pendens prevents property from being sold.  It is a lien on property. It provides notice to the world that a lawsuit is filed against a piece of real property. Lis Pendens are recorded with the County Recorders' Office.  Fresno's county recorders office is located downtown.   The notice will be found by title companies serving as escrow.  A Lis Pendens is also called "Notice of Pendency of Action." 

A Lis Pendens is a very potent weapon. A Lender will likely not issue a loan when it learns the property is involved in a lawsuit.   Potential buyers know that if they buy property with a Lis Pendens, they are buying the property subject to that Lis Pendens. Thus, buyers shy away from property with an active Lis Pendens. 

Thus, it is very important that if you are involved in a legal dispute over real property, consider recording a Lis Pendens.  Likewise, if you are a buyer, you will want to have the Lis Pendens expunged from the property before purchasing.  

Ken Jorgensen, California Attorney

www.fresnolawgroup.com

Photo by:  http://www.flickr.com/photos/stewdean/