The Effect of a Lis Pendens
When it comes time to move, many people think they can sell their home on their own. It’s so easy, right? Not necessarily.
If a person doesn’t know what to expect when selling their home, they can experience a lot of headaches. For example, one thing that the average homeowner does not know about is the possibility of a lis pendens.
Lis pendens is Latin for “suit pending.” It is an official public notice of a pending lawsuit against a home or other real property. A lis pendens was created to protect the interests of parties involved in a legal dispute. However, in some cases, a lis pendens is filed maliciously in an effort to severely burden property owners attempting to sell their property.
A lis pendens puts potential buyers on notice of a dispute over the house’s title. However, a lis pendens is not considered a lien on a property, so it does not prevent a party from selling it. What a lis pendens does do, though, is cloud an owner’s title and constrain their right of alienability, which refers to the ability to transfer or sell a property right or piece of property from one party to another.
A lis pendens can also cause a sale to fall through. Knowing that a property has a legal action against it can cause a potential buyer to stay away and essentially look elsewhere. At the very least, it will discourage buyers from proceeding with purchase until the dispute is resolved. Because of this, lis pendens are most common in cases where a third party, such as a lender, seeks protection of their legal rights. Examples include foreclosure cases, divorces, and contract disputes.
However, it is also possible for a lis pendens to be filed on a property for no purpose other than to prevent the homeowner from selling the property. This may be done in cases where a person or entity desires to preserve the property as an avenue for collecting a future judgment.
Luckily, Florida law allows for a lis pendens to be expunged in one of three ways:
- Automatically after one year when no extension is filed
- By a court finding that the lis pendens is improper and should be resolved
- When a lawsuit has been filed and subsequently resolved
To prevent a lis pendens from being expunged, it must be proven that the person filing it has ownership rights in the property. Ownership can be shown through a lien or other recorded instrument or lien. If there is no recorded instrument, then there must be a fair nexus, which means making “a minimal showing that there is at least some basis for the underlying claim.
Seek Legal Help
A lawsuit on your home can really put a damper on a sale. Make sure you understand how Florida law can help you if you are a homeowner.
Contact Fort Lauderdale real estate lawyer Edward J. Jennings, P.A. for help with your real estate issue. Whether you are buying or selling a home, make sure you are aware of the things that can cause delays and other problems. Call 954-764-4330 or fill out the online form to schedule a consultation.
Source:
floridabar.org/the-florida-bar-journal/protecting-interests-or-hindering-real-estate-deals-impact-of-a-lis-pendens-when-selling-real-property-in-florida/
