A lis pendens is a formal legal notice signaling a pending lawsuit affecting your property, creating significant challenges for sales.
While it might seem alarming, you have options. This guide will show you practical strategies to either sell your property despite the lis pendens or remove it efficiently, helping you navigate this challenge and protect your investment.
Quick Answer: Can You Sell Property with a Lis Pendens?
Yes, but traditional sales are virtually impossible. A lis pendens creates a legal cloud on your title that prevents traditional buyers from obtaining financing. Your realistic options:
- Sell to a cash investor (typically below market value)
- Remove the lis pendens first through settlement or court action
- Obtain court permission to sell with proceeds held in escrow
Most sellers choose between selling quickly to investors who specialize in these situations or resolving the lawsuit first to maximize value.
Why Traditional Sales Fail with a Lis Pendens
A lis pendens is a public notice of a pending lawsuit affecting your property’s ownership or rights. This filing creates insurmountable obstacles for conventional transactions:
Lenders Won’t Finance
- Banks, credit unions, and mortgage companies refuse loans on properties with active litigation
- FHA, VA, and conventional mortgages are impossible to obtain
- No financing means no traditional buyers can purchase
Title Insurance is Unavailable
- Title companies won’t insure property with a lis pendens
- Without title insurance, lenders have no protection
- Buyers risk inheriting the lawsuit’s outcome
How Investors Buy Properties with Lis Pendens
Cash investors can purchase properties with a lis pendens because they don’t require financing or title insurance, allowing them to accept litigation risk that traditional buyers cannot.
- Use cash reserves, eliminating lender requirements
- Have legal teams to evaluate the underlying lawsuit
- Calculate risk into their purchase price
- Often negotiate directly with claimants to resolve disputes
- Can complete transactions before dispute worsens
👉 Skip the legal headaches - sell your property with lis pendens for cash.
Common Reasons for Lis Pendens on Vacant Land
Vacant land faces unique circumstances that trigger lis pendens filings:
Boundary Disputes
Example: Neighboring property owners claiming your land extends onto theirs.
Partition Actions
Example: Co-owners of inherited land disagree on keeping or selling.
Contract Disputes
Example: Buyer sues to force completion of a purchase contract (Specific Performance).
Quiet Title Actions
Example: Previous owner’s heirs claiming ownership rights.
Easement Disputes
Example: Utility companies claiming access rights.
Fraudulent Conveyance Claims
Example: Claims of asset hiding to avoid creditors.
For more context on title complications, see our guide on common title issues affecting land sales.
Removal Strategies: Getting Clear Title
1. Settlement (Fastest Path)
- Negotiate monetary settlement with claimant
- Claimant releases lis pendens voluntarily
- Timeline: 2-6 months | Cost: $5,000-$15,000 in legal fees
2. Court Dismissal
- Win the underlying lawsuit or have it dismissed
- Lis pendens automatically removed with dismissal order
- Timeline: 3 months-3 years depending on case complexity
3. Expungement Order
- File motion proving the lis pendens was improperly filed
- Demonstrate claim doesn’t properly affect property title
- Timeline: 2-4 months | Higher success rate when lawsuit clearly doesn’t involve ownership
4. Mediation
- Neutral third-party facilitates agreement
- 60-80% success rate for real estate disputes
- Cost: $200-$500/hour for 4-8 hour sessions
Selling with Court Permission
Courts may allow sales despite active lis pendens if you provide security:
Bond or Substitute Collateral
- Post surety bond equal to disputed amount (costs 1-15% annually)
- Offer other property as substitute collateral
- Timeline: 30-90 days for court approval
Escrow Account
- Sale proceeds held until lawsuit resolves
- Protects claimant’s interest if they win
- Court must approve arrangement before closing
Legal costs: $3,000-$10,000 for court permission process.
Wrongful Filing Remedies
If a lis pendens is filed improperly or maliciously:
Expungement Motion
- File to remove improper filing
- Cost: $3,000-$8,000
Slander of Title Lawsuit
- Sue for damages from diminished property value
- Recover losses from inability to sell
- Must prove malice or reckless disregard
Attorney’s Fee Recovery
- Many states allow courts to order filer to pay your legal costs
- Only awarded for clearly improper or bad-faith filings
Frequently Asked Questions
How long does a lis pendens last? Varies by state: 1-5 years in states with expiration periods, indefinite in others until case resolves.
Is a lis pendens a lien? No. A lien is a financial claim (mortgage, unpaid taxes). A lis pendens is only a notice of pending litigation affecting title.
Can I refinance with a lis pendens? No. Lenders won’t refinance until the lis pendens is removed.
What’s the difference between lis pendens and foreclosure? Foreclosure is a specific legal action to repossess property for unpaid debt. A lis pendens can be filed during foreclosure or for many other property disputes.
Take Action: Your Next Steps
A lis pendens severely limits your options but doesn’t eliminate them. Your decision depends on your timeline and financial goals:
If you discover a lis pendens on your property:
- Consult a real estate attorney immediately
- Review the underlying lawsuit to understand claims
- Evaluate settlement costs versus property value
- Consider whether quick sale or removal-first suits your situation
Need to sell quickly?
- Contact cash investors specializing in title issues
- Expect 20-40% discount but gain certainty and speed
- Close in weeks instead of months or years
Want maximum value?
- Hire an attorney to resolve the underlying lawsuit
- Pursue settlement or expungement
- Prepare for 6+ month timeline
👉 Skip the legal headaches - sell your property with lis pendens for cash.
Frequently Asked Questions
What Comes After a Lis Pendens?
Once a Lis Pendens is filed, the underlying lawsuit affecting your property’s title proceeds toward a judgment, settlement, or dismissal. The Lis Pendens remains active on your property’s record until the case is fully resolved or the notice is specifically removed.
How Long Does It Take to Remove a Lis Pendens?
There is no fixed timeline for removing a Lis Pendens; the duration varies significantly. It depends on the complexity of the underlying lawsuit, the parties’ willingness to settle, and the court’s schedule. Resolution can take anywhere from a few months to several years.
Is a Lis Pendens a Lien?
No, a Lis Pendens is not a lien. A lien represents a financial claim against your property (e.g., for unpaid taxes or a mortgage). Conversely, a Lis Pendens is solely a public notice indicating that your property’s title is subject to an active lawsuit.
How Long is a Lis Pendens Typically Valid?
The validity and expiration of a Lis Pendens are highly dependent on state laws and the lawsuit’s progression. Some states impose statutory expiration periods, meaning it may expire after a few years unless renewed. In other jurisdictions, it generally remains active until the underlying case is resolved or steps are taken for its removal.
Please consult your financial advisor, accountant, real estate attorney, or tax specialist. This article is for informational purposes and is not tax or legal advice.
