Lis pendens is Latin for “suit pending.” A lis pendens is an official notice of a pending lawsuit against a piece of real estate that is recorded in the public record. It puts the public on notice that a lawsuit has been filed against real estate or an interest in the real estate.
A lis pendens can prevent real estate from being conveyed because the lis pendens will show up in the public record when a title search is done. For instance, if a buyer sues a seller for specific performance, the buyer can record a lis pendens against the property. If the seller tries to sell the property after a lis pendens was filed, the lis pendens will come up in title searches and a title insurance company will refuse to insure the property. The title insurance company will require that the lis pendens be cleared before title insurance can be issued. This can prevent the property from being sold.
Pursuant to Fla. Stat. § 48.23(1)(c), a lis pendens in Florida must include the following:
a. The names of the parties.
b. The date of the institution of the action, the date of the clerk’s electronic receipt, or the case number of the action.
c. The name of the court in which it is pending.
d. A description of the property involved or to be affected.
e. A statement of the relief sought as to the property.
A lis pendens is most commonly used in real estate lawsuits involving the following:
- Divorce – If there is a dispute over the ownership of property from a divorce, then a lis pendens is likely to be filed in the public record.
- Overdue homeowner’s or condominium association fees – If an owner falls behind on HOA or condominium association fees, then the association may file a lawsuit against the owner and a notice of lis pendens.
- Foreclosure – Lenders will file a lis pendens against a borrower that is in foreclosure.
- Contract disputes – If there is a dispute over a contract and the parties do not close, a buyer may file a lis pendens to prevent the seller from selling the property to another party while the buyer and seller resolve the dispute.
- Specific performance – If the seller decides not to sell property to a buyer, the buyer may have the ability to file a lawsuit for a court to enforce the contract and therefore force the seller to sell the property to buyer at the price agreed to in the contract. A lis pendens will be filed to prevent the seller from selling the property to another buyer while the specific performance lawsuit moves through the court.
- Quiet title – A quiet title action is a lawsuit that clears title to real property and removes clouds on title. It is commonly used to determine the genuine owner of real property.
Property owners who have a lis pendens filed against their property cannot sell, obtain financing, or obtain title insurance for the property until the lis pendens is removed. A lis pendens will be removed once the lawsuit is settled, which could take months or years depending on the lawsuit, or if the party that filed the lis pendens voluntarily removes it.