Los Angeles Lis Pendens Lawyer

A lis pendens is also known as a “notice of pendency of legal action”, and it is a legal notice that is used in California to indicate that there is a pending lawsuit concerning a specific piece of real estate. This notice serves to inform potential buyers or lenders that the property is subject to litigation, which could affect ownership or title.

Lis Pendens in California

Here’s how it works

1. Purpose: It provides public notice that a claim has been made regarding the property, preventing the owner from selling or refinancing it without disclosing the ongoing legal issue.
2. Recording: To record a lis pendens, a party must submit the notice to the county recorder’s office where the property is located. The notice typically includes details about the lawsuit and the parties involved.
3. Effect: Once recorded, the lis pendens creates a cloud on the title, meaning that any future buyers or lenders are on notice of the legal dispute. This can deter transactions involving the property until the matter is resolved.
4. Duration: A lis pendens remains in effect until the lawsuit is resolved, or it is formally removed by a court order or by the party that recorded it.

Recording a Lis Pendens

California Code of Civil Procedure § 405.20 outlines the requirements for recording a lis pendens.

1. Notice of Pendency: This section specifies that a party to a lawsuit may record a notice of pendency of action (lis pendens) regarding real property when the action affects the title or right to possession of that property.
2. Requirements: The notice:
   • Must contain the names of the parties to the action.
   • Must contain a description of the property that is affected by the action.
   • May be recorded in the office of the recorder of each county in which all or party of the real property is situated.

Duration and Removal: The lis pendens remains in effect until the litigation is resolved, withdrawn by the recording party, or removed by a court order.

Expunging a Lis Pendens

California Code of Civil Procedure § 405.31 addresses the removal of a lis pendens. Here are the main points:

1. Removal Process: This section allows a party to seek a court order to expunge a lis pendens from the property. This can happen if the party believes that the lis pendens was improperly filed or if the underlying lawsuit has been resolved.
2. Court Hearing: If a party seeks expungement, the court will conduct a hearing to determine whether the lis pendens should be canceled. The party seeking removal must provide notice of the motion and hearing to the party who filed the lis pendens.
3. Criteria for Removal: The court may remove the lis pendens if the court finds that:
   • the action does not affect the title or right to possession of the property,
   • the party who recorded the lis pendens fails to establish by a preponderance of the evidence the probable validity of the real property claim,
   • despite probable validity of a real property claim, the court finds adequate relief can be secured by the claimant by the giving of an undertaking
4. Order: If the court grants the motion, it will issue an order that the lis pendens is expunged, and this order will be recorded with the county recorder’s office.

Why Expunging a Lis Pendens May be Necessary

A lis pendens can be improperly exploited in several ways, often to the detriment of property owners or potential buyers. Here are some common methods of exploitation:

1. Leveraging Legal Disputes: Individuals or entities might file a lis pendens to gain leverage in a negotiation or settlement, even if the legal claim lacks merit. This can pressure property owners to settle disputes quickly, often for less than they might otherwise receive.
2. Intimidation Tactics: A party may use a lis pendens as a tactic to intimidate or coerce the property owner, making them more compliant in disputes or negotiations unrelated to the property.
3. Clouding Title: Filing a lis pendens can cloud the title of the property, making it difficult for the owner to sell or refinance. This can be exploited by a party who hopes to acquire the property at a lower price once the owner is distressed by the inability to transact.
4. Improper Filing: Sometimes, a lis pendens is filed without a legitimate legal basis. This misuse can harm the property owner’s ability to sell or encumber the property, potentially leading to financial loss.
5. Real Estate Speculation: In some cases, individuals might file a lis pendens on a property they are interested in acquiring, creating a situation where they can negotiate a better price with the current owner, knowing that the owner may be under pressure to resolve the litigation.
6. Manipulating Legal Processes: A party might exploit the legal system by dragging out litigation to maintain the lis pendens longer than necessary, keeping the property in legal limbo and preventing transactions.

Reach Out to an Experienced Real Estate Attorney

A lis pendens is a powerful tool that may be necessary during any dispute involving the interests in real property, but it is also often used for an improper purpose to gain an advantage in civil litigation. For a confidential consultation with an experienced Los Angeles real estate lawyer, contact Litigation, P.C., at 424-284-2401 or online to learn about your legal options.