When real estate is involved in a legal dispute, a Lis Pendens can play a crucial role in protecting the rights of the party bringing the claim. But what exactly is a Lis Pendens, when should it be recorded, and how does it impact a lawsuit?
This blog post breaks it all down in simple terms so you can understand how this legal tool works and whether it applies to your case or lawsuit.
What Is a Lis Pendens and When Is It Used?
A Lis Pendens is a legal notice filed in public records to alert potential buyers, lenders, and anyone else that a lawsuit involving the property is pending. In Latin, Lis Pendens means "pendinglitigation." This filing ensures that any future transactions involving the property are subject to the lawsuit's outcome.
Common scenarios where a Lis Pendens may be used include:
- Real Estate Disputes: Such as breach of contract in a property sale.
- Foreclosure Cases: To inform interested parties of pending litigation.
- Title Disputes: When ownership is being challenged.
- Partition Actions: When co-owners are disputing property division.
If you're involved in a real estate lawsuit, understanding when and how to record a Lis Pendens is critical.
How Do You File a Lis Pendens in Florida?
Recording a Lis Pendens involves filing a document with the county where the property is located. In Florida, this process includes:
- Drafting the Lis Pendens Notice: The notice must include details of the lawsuit, a legal description of the property, and the claims being made.
- Filing with the Clerk of Court: The document must be filed in the county's public records.
- Serving Notice to Interested Parties: The property owner and relevant parties must be notified.
If the Lis Pendens is improperly filed or lacks a valid legal claim, the opposing party may move to have it removed, which can lead to legal penalties for wrongful filings.
What Are the Legal Effects of a Lis Pendens?
A Lis Pendens creates a cloud on title, meaning:
- The property becomes difficult to sell, as buyers may be wary of pending litigation.
- Lenders may refuse to approve financing on the property.
- The defendant (property owner) may feel pressure to resolve the lawsuit quickly.
This makes it a powerful tool, but it must be used carefully. Filing a Lis Pendens without a strong legal basis can backfire.
Can You Remove a Wrongfully Filed Lis Pendens?
If a Lis Pendens is improperly recorded, the affected property owner can file a motion to discharge it. A court may remove a Lis Pendens if:
- The underlying lawsuit does not involve a valid claim to the property.
- The case has been dismissed or resolved.
- The filing party cannot show a legal interest in the property.
In some cases, the party who wrongfully recorded a Lis Pendens may be required to pay damages for interfering with the property's sale or use.
Should You Record a Lis Pendens in Your Lawsuit?
If your lawsuit involves real estate rights, filing a Lis Pendens may be a strategic move. However, because it significantly affects the property's marketability and can lead to legal consequences if misused, it's crucial to seek legal counsel before filing. At Ayala Law, we specialize in real estate litigation, helping clients navigate disputes, protect their property interests, and take the right legal steps.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
