In the law of the United States, a lis pendens is a written notice that a lawsuit has been filed concerning real estate, involving either title for property or ownership interest claimed therein.. The notice is usually filed in the county land registry office. Recording a pendent against a piece of property tells potential buyers or lenders that the title of the property is questionable, which makes the property less attractive to buyers or lenders. After the notice is filed, the legal title of any person who continues to purchase the land or property described in the notice is subject to the final decision of the lawsuit.
Pendenative is Latin for "pending lawsuit". This may refer to a pending lawsuit or a particular situation with public notice of litigation that has been recorded at the same location where the title of the real property has been recorded. This notice secures the claimant's claim on the property so that the sale, mortgage, or imposition of the property will not prejudice the plaintiff's rights to the property, if the claimant wins in his case. In some jurisdictions, when notices are recorded correctly, lis pendens are considered to be constructive notices to other litigants or other unrecorded or subordinate liens.
The recording office will record the lis pendens upon the request of anyone claiming the right to do so (eg because he/she has filed suit). If another person with an interest in the property (eg owner) believes that the lis pendens is not correct, he or she can file a lawsuit to remove it.
Some of the 'undefined' laws require state reporters to notify, in the event of a challenge to a notice, to establish that the probable cause or the likelihood of a reasonable success for the benefit of their case in the underlying claim. Other countries do not have such requirements.
Video Lis pendens
History
Under general law, the existence of a lawsuit that potentially affects property rights has the legal effect of putting the whole world on constructive notice of the lawsuit; anyone with an interest in the real property that is the subject of a pending suit taking the interest is subject to the rights of the plaintiff as they may ultimately be determined, no matter how long later. As a result, nothing related to the possession of the lawsuit material can be changed definitively when the lawsuit is pending. Without publication of a lawsuit, an innocent buyer may find a late lawsuit.
The harsh effects of this rule, and its effect on innocent buyers, led to many jurisdictions enacting legislation requiring written notice, usually recorded in the land records where the real estate is located, for notice of rule provisions to be effective. Typically, a separate taped instrument is required by law if the suit affects the title for the real property. If legal requirements are met, the world implements "constructive notices" of the whereabouts of the lawsuit, and everyone gets interest then does so subject to the proceeds of the lawsuit.
Maps Lis pendens
Effect
Pending license is taken as a constructive notice of a pending lawsuit, and it serves to place the cloud on the title of the relevant property until the lawsuit is resolved and notices released or lis pendens removed. A careful buyer will not want to buy a land that is subject to lis pendens or will only purchase the land at a discount, a wise lender will not lend money on land security, and the insurance company will not guarantee the title for land like: the title is taken subject to the proceeds of the lawsuit. Because so many real properties are bought with borrowed money, this usually keeps the owner from selling the property. It can also keep the owner from borrowing money that is secured by the property (such as to pay the cost of defending the lawsuit).
It is important to note that the presence of a lis pendens does not prevent prevent or always invalidate the transfer of property, although it makes such transfers subject to the outcome of litigation. Thus, the owner is not prevented from selling the land for cash (which is not borrowed), promising it as collateral for speculative loans, or giving it, all subject to the proceeds of the lawsuit. However, after the lis pendens is recorded, the recipient ("buyer" or "pendente lite grantee") will be deemed to have a notice of litigation and may lose property rights in case of claimant's claim apply.
Although generally considered to be related to real property (land, buildings, and the like), the doctrine lis pendens also applies to private property. Often, the law applies only to real property, so the common-law doctrine may still apply to private properties.
See also
- Lis alibi pendens
References
Source of the article : Wikipedia
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