lis pendens

[RiverQueen]

Jurisdiction

Colorado

A Lis Pendens has been filed. Can the property be sold prior to settlement?

 

[Tax Counsel]

A Lis Pendens has been filed. Can the property be sold prior to settlement?

A lis pendens is a filing that puts the the public on notice that there is a court case involving a dispute that affects the title to the property. The property can be sold prior to the case being resolved, but the buyer takes a risk in doing that. How much of a risk depends on the exact nature of the claims involved in the lawsuit. I advise most buyers to avoid properties with lis pendens filings unless they can get a great discount on price that well compensates for the risk involved. The buyer certainly should consult a real estate lawyer before jumping in to buy a property with a title clouded by a lis pendens.

 

[adjusterjack]

If a buyer needs a mortgage he isn't likely to get it until the lis pendens is lifted.

Nor will the owner be able to refinance.

 

[zddoodah]

A Lis Pendens has been filed.

Based on what?

Can the property be sold prior to settlement?

If the owner of the property can find a buyer willing to purchase the property subject to the lis pendens, then yes. However, the property will remain subject to the lis pendens, and the buyer will be at risk of whatever might happen in the litigation to which the lis pendens relates. Finding a buyer willing to undertake that risk might be possible, but it's not likely.

Why do you ask?