What is a lis pendens

Nov 14
19:43

2020

David Steinfeld

David Steinfeld

  • Share this article on Facebook
  • Share this article on Twitter
  • Share this article on Linkedin

A lis pendens is a document filed in a lawsuit and recorded by the clerk in the public records. It creates a cloud on title to real property. It is specifically authorized in Florida by Section 48.23 of the Florida Statutes.

mediaimage
What are the kinds of lis pendens There are two types of lis pendens under Florida law. The first is a lis pendens of right. Those are based on a duly recorded instrument,What is a lis pendens Articles like a mortgage. The second is a garden variety lis pendens. Those are not based on any recorded document but can still be maintained in the discretion of the judge if there is a connection or nexus to the property that is the subject of the lis pendens.  
What is a lis pendens of right The lis pendens of right is based on a recorded lien or other recorded instrument. A mortgage is a good example. It is recorded in the official or public records of the county where the property is located. It is security for a promissory note. If the note is breached, then commonly the mortgage holder will sue to foreclose the mortgage lien.
 
But the filings in the lawsuit are maintained by the clerk of court and the public records where the deed lives is something different. The lis pendens in the public records connects to the deed and notifies the world of the lawsuit that affects the property. So the lis pendens is really just an efficient and effective was to connect the clerks lawsuit file with the public records. The most important distinction is that no bond is required to maintain a lis pendens of right.
What is a garden variety is pendens The garden variety lis pendens does not have a recorded instrument but is allowed under certain circumstances and within the discretion of a judge. An example is where one party under a written contract loans another money to buy land. The agreement says that title will include the lender but the borrower omits the lender from the deed. If the lender sues for a constructive trust those facts may prove the nexus and allow for a lis pendens on the property. Normally the process is done through an evidentiary hearing which is like a mini-trial. If the proponent prevails, they must post a bond to maintain the garden variety lis pendens. The judge determines the amount of the bond, which is usually also done at the evidentiary hearing.
What does a lis pendens do The effect of a lis pendens, whether of right or garden variety, is to notify prospective buyers of a claim against property in a pending lawsuit. The lis pendens also protects the claimant from losing their right to the property to a subsequent purchaser. 
  Does a lis pendens prevent someone from buying land Contrary to popular belief a lis pendens does not actually prevent the owner from selling the property. The titleholder can still sell the land and transfer the deed, but most title companies will not provide insurance and closing agents may not close without the lien being bonded. Also, a buyer who purchases property subject to a lis pendens may inherit the lawsuit. 
 
So in reality, while a lis pendens does not technically prevent a land sale, the average buyer likely will not buy the parcel. This is true because the lis pendens will prevent them from obtaining clear title and preclude them from becoming a bona fide purchaser. 
What happens if a lis pendens is wrongful A wrongfully filed lis pendens can be removed by the judge in the case in which it was filed. The party seeking to remove it must file a motion and address why the lis pendens is improper under Florida law.
 
Improperly filing a lis pendens can subject a party to liability. That liability can include punitive damages. Thus, is it prudent to seek the advice of a Board Certified expert before buying property or filing a lis pendens.

Also From This Author

Proceedings supplementary in Florida how to use them and how to avoid them

Proceedings supplementary in Florida how to use them and how to avoid them

Proceedings supplementary in Florida allows a judgment holder to enforce the judgment against the judgment debtor’s property that is held by a third party. Normally the judgment creditor can only enforce the judgment against property of the judgment debtor in that party’s possession that is not exempt from execution. But if the judgment debtor transfers real or personal property to another party to avoid the judgment then the judgment creditor can use proceedings supplementary to pursue that property.
Real property title related claims like quiet title and slander of title in Florida

Real property title related claims like quiet title and slander of title in Florida

Quiet title is a claim under Florida law to remove a cloud on title to real property. It is established in and regulated by Chapter 65 of the Florida Statutes. It is often used where a party records an improper lien or claim against the ownership of real property. Slander of title is used to obtain damages flowing from a lien or claim that was wrongfully recorded against the title.
Understanding Eviction vs. Ejectment in Florida Real Estate Law

Understanding Eviction vs. Ejectment in Florida Real Estate Law

In the realm of Florida real estate, eviction and ejectment are two distinct legal processes used to remove individuals from a property. While they may seem similar, they cater to different scenarios based on the occupant's legal status. Evictions apply to tenants with a lease agreement, whereas ejectments deal with individuals who have no legal claim to the property. This article delves into the nuances of each process, providing clarity for landlords, tenants, and property owners navigating the complexities of Florida's real estate laws.