What Does a Lis Pendens Mean for Property Sales?

Real estate transactions are not always straightforward. Sometimes, a property may be the subject of a legal dispute before a sale can go through. This is where a lis pendens comes in. The term may sound technical, but its impact can be significant, especially in Florida Real estate transactions. If you are buying, selling, or investing in property, understanding how a lis pendens works can help you avoid delays, financial risks, and unexpected legal complications.

What’s a Lis Pendens in Florida?

A lis pendens, Latin for “suit pending,” is a formal notice recorded to show that a property is involved in active litigation. In Florida, it is governed by Florida Statute Section 48.23. You may think of it as a public warning attached to a property. This is because it tells anyone searching the records that the property is involved in litigation that could affect its ownership, possession, and related rights.

A lis pendens is commonly used in cases involving:

• Mortgage foreclosures
• Quiet title actions
• Disputes over purchase agreements
• Easements or boundary conflicts

Once recorded, a lis pendens provides a constructive notice, meaning that anyone who buys or finances the property after the filing does so subject to the outcome of the lawsuit.

How Does a Lis Pendens Affect Property Sales?

A lis pendens can significantly disrupt a real estate transaction. First, it can impact a real property’s marketability. Many buyers are hesitant to purchase a property involved in an active lawsuit. Even if a buyer is willing, lenders and title insurance companies may not be if the title is not clear or a lis pendens is in place.

Another effect is on timelines. A lis pendens can lead to a sale stalling or face long delays. If you are a seller, you may see lower offers as buyers factor in the legal risks and uncertainties. The nature of the underlying dispute also matters. A dispute over ownership or title is significantly more serious than, say, a minor contractual disagreement. This, in turn, tends to have a greater impact on value and buyer interest.

Can You Still Sell a Property With a Lis Pendens?

Technically, yes, but it can be much harder. While you can transfer the property, the buyer takes it subject to the pending lawsuit. This makes the property less attractive and narrows the pool of potential buyers. In most cases, resolving the dispute or removing the lis pendens is advisable and often necessary before proceeding with the sale.

How Is a Lis Pendens Removed in Florida?

A lis pendens stays on record until the legal dispute behind it is resolved or the court case is finalized. In Florida, removing a lis pendens typically happens in one of the following ways:

• The lawsuit is dismissed or resolved, and a release is recorded.
• The court discharges or dissolves the lis pendens, for instance, if it was improperly filed or not supported by a valid real property claim
• Automatic expiration
• Posting a bond if the court finds a link between the lawsuit and the property

Contact Us for Legal Help

If your property is affected by a lis pendens or you’re dealing with a real estate dispute, contact our Miami real estate litigation lawyer at Valero Law today at 305-607-7011 to protect your interests and resolve the issue efficiently. We serve clients in Davie, Broward County, Coconut Grove, and Miami-Dade County.