How Long Will a Lis Pendens Remain Against Real Property?
Buying a property comes with a host of responsibilities, one of which is ensuring there are no clouds on the title. Among the most notable of these clouds is a lis pendens. This Latin term means "pending suit" and is a document filed with the local property records indicating that a lawsuit is pending or has been filed over that specific property.
Understanding Lis Pendens
A lis pendens is a public notice that a lawsuit involving the property is underway, even before a court has ruled on the matter. This notice acts as a warning to other potential buyers and creditors that the title of the property is under dispute. Therefore, it creates a potential risk and can significantly affect the property's value and saleability.
The Timeline and Removal Process
The duration a lis pendens remains against real property can vary widely. In some cases, the lawsuit may be resolved quickly, and the lis pendens could be removed within a matter of months. However, in other cases, especially if the case involves complex legal issues, it can take years for the matter to be resolved.
Once a legal decision is made, the court can issue an order to remove the lis pendens. The county in which the property is located will then need to be informed of the court's decision and the lis pendens will be removed from the public record. However, depending on the jurisdiction, this process can take additional time, which can prolong the uncertainty for potential buyers.
What Buyers Should Do
If you are a buyer considering a property with a lis pendens, it is essential to approach the situation with caution. It is crucial to ensure that you have all the necessary documentation and confirmations from the court and the county that the lis pendens has been removed before finalizing the sale. You should not close the deal until you have absolute certainty.
Additionally, it is wise to inform your title company about the presence of a lis pendens. Ensure that the title insurance includes coverage for any potential issues that may arise post-closing. Title insurance can provide financial protection in case disputes or unresolved legal actions emerge later, protecting your investment and rights as a property owner.
Should the lis pendens continue to be a concern and you are unable to resolve the matter to your satisfaction, it may be prudent to consider other properties. The uncertainty and the potential risks associated with a lis pendens can be financially and emotionally taxing, and it might be better to err on the side of caution and invest in a property with a clean title.
Conclusion
In conclusion, a lis pendens is a significant concern for any potential buyer or property owner. While the duration may vary, it is essential to take proactive steps to ensure the lis pendens is removed and confirmed by the local authorities before proceeding with any transactions. Utilizing title insurance can provide additional protection, but ultimately, the decision to purchase a property with a pending lis pendens should not be taken lightly. Always ensure that all bases are covered to protect your investment.