Tuesday, November 2, 2010

LIS PENDENS

A Lis Pendens, also known as a Notice of Pendency of Action, basically means that there is a lawsuit pending with respect to the particular real property listed in the Lis Pendens. A Lis Pendens is usually prepared once the lawsuit is commenced and is both recorded at the County Recorder’s Office and filed with the court. The purpose of having the document recorded is to tie the property up from transfer of title. Anyone that might have an interest in the property (for example, someone wanting to buy or finance) would then be aware that there is a potential claim on the property.

In the construction industry, a Lis Pendens goes hand in hand with a Mechanic’s Lien lawsuit. As you know, when a contractor provides work on a home and does not get paid, that contractor may record a Mechanic’s Lien. Once a lawsuit is brought to foreclose on that Mechanic’s Lien, a Lis Pendens is then filed and recorded to further enforce that Mechanic’s Lien. This process essentially ties up the property until the legal proceeding is resolved.

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