What Is a Lis Pendens?
Also known as: Notice of Pendency
Latin for "suit pending," a lis pendens is a notice recorded against a property to warn buyers and lenders that a lawsuit affecting its title or ownership is underway. Anyone who acquires the property afterward takes it subject to the outcome of that case.
Latin for "suit pending," a lis pendens is a notice recorded against a property to warn buyers and lenders that a lawsuit affecting its title or ownership is underway. Anyone who acquires the property afterward takes it subject to the outcome of that case.
Lis Pendens explained
The party who files the lawsuit, or that party’s attorney, records the notice in the county land records and ties it to the property’s legal description. In states where foreclosures go through a judge, it is recorded with the foreclosure complaint. It also appears in quiet title actions, partition suits between co-owners, divorce cases involving a home, and lawsuits that ask a court to force a sale under a contract. Title companies see it during the search and generally will not insure a clean transfer until the case ends or the notice is released.
For wholesaling teams a lis pendens works as both a lead signal and a warning light. Lists of new foreclosure filings in court-supervised states are built from them, so callers can reach owners early in the process. Before spending time on a contract, acquisitions should read the notice itself. It names the plaintiff and case number, which shows whether the issue is a lender foreclosure, a dispute between co-owners, or something else, and whether the seller can deliver clear title at all. A wholesaler who contracts on a property under a lis pendens is buying into the lawsuit as well.
Not every lis pendens means foreclosure, and reading it that way produces wrong guesses about equity and urgency. Filing one carelessly can expose the filer to liability, since some states require a real claim to the property and allow damages for wrongful recording. The notice also does not last forever; it can be released, expire, or be discharged when the case ends. Disposition should not market a property under active litigation until a lawyer and the title company confirm a path to closing.
Example
A caller finds a lis pendens on a rental house and passes it to acquisitions, who pull the case number and see that it is a partition suit between two siblings who inherited the property, not a foreclosure. Instead of one motivated owner, the team now needs both siblings to sign and the title company’s cooperation, so the contract is written with both signatures and a title contingency.
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