What is Lis Pendens?

Lis pendens is a Latin term meaning “suit pending.” It is a written notice that a lawsuit involving a claim on a property has been filed. The notice is recorded in the land records to inform prospective buyers or lenders that the property is subject to litigation.

Who Can File Lis Pendens?

• Filing Parties: Generally, the plaintiff in a lawsuit concerning real estate interests can file a lis pendens. This includes individuals, corporations, or entities that claim an interest in the property subject to litigation.

Why is Lis Pendens Filed?

• Purpose:
  • Notice to Third Parties: To notify potential purchasers or creditors that the property is involved in a lawsuit and that any transaction involving the property may be affected by the outcome of the litigation.
  • Preserve Interest: To preserve the claimant’s interest in the property by preventing its sale or transfer while the lawsuit is pending.

When is Lis Pendens Filed in Bad Faith?

• Bad Faith Indicators:
  • Lack of Merit: Filed when there is no legitimate legal claim or interest in the property.
  • Harassment or Delay: Used as a tactic to harass the property owner or delay legitimate transactions without just cause.
  • Improper Purpose: Filed without a genuine intention to resolve a real legal dispute related to the property.
• Consequences of Filing in Bad Faith:
  • Legal Sanctions: Courts may impose sanctions on parties who file lis pendens in bad faith, including fines and orders to pay attorney fees.
  • Damages: The filing party may be liable for damages resulting from wrongful filings, such as lost sales or depreciation in property value.

How Our Law Firm Can Assist!!!

1. Filing and Removal of Lis Pendens:
   • Drafting and Filing: Attorneys can assist in drafting and filing a lis pendens notice correctly to ensure compliance with legal requirements.
   • Challenge and Removal: A law firm can challenge improper lis pendens filings and seek their removal when they lack merit or are filed in bad faith.

2. Legal Strategy and Defense:
   • Evaluating Claims: Assess the validity of claims that justify the use of lis pendens and advise on the legal strategy.
   • Defending Against Wrongful Filings: Represent clients in court to defend against wrongful lis pendens filings and seek damages for any harm caused.

3. Negotiation and Settlement:
   • Negotiating Disputes: Attorneys can negotiate settlements in disputes involving property interests to resolve issues without prolonged litigation.
   • Mediation and Arbitration: Facilitating alternative dispute resolution methods to address property-related conflicts effectively.

Consequences of Filing in Bad Faith

• Legal Sanctions: Courts may impose sanctions on parties who file lis pendens in bad faith, including fines and orders to pay attorney fees.
• Damages: The filing party may be liable for damages resulting from wrongful filings, such as lost sales or depreciation in property value.
  • Maryland
    • Statutes and Case Law
      • Maryland Code, Real Property Article § 3-501 to § 3-503
        • Requirements: Requires that lis pendens be filed in the circuit court where the property is located and must involve a property interest claim.
        • Notice: Must provide notice of the pendency of an action involving the title to real property.
        • Case Law: In Greenpoint Mortgage Funding, Inc. v. Schlossberg, 390 Md. 211 (2005), the Maryland Court of Appeals discussed the need for a legitimate dispute involving a property interest for lis pendens to apply.

When Lis Pendens is Not Applicable

• Non-Real Property Disputes: Lis pendens is not applicable to disputes that do not directly affect the title or ownership of real property.
• Meritless Claims: Courts can remove lis pendens if the underlying lawsuit does not involve a valid property interest or if it is determined to be frivolous.
  • Washington, D.C.
    • Statutes and Case Law
      • D.C. Code § 42-1207
        • Filing Requirements: Lis pendens must be filed with the Recorder of Deeds, and it must relate to a legal action affecting the title or ownership of real property.
        • Effect: Acts as constructive notice to potential buyers or creditors that the property is subject to litigation.
        • Case Law: In Ward v. Wells Fargo Home Mortgage, Inc., 907 A.2d 290 (D.C. 2006), the court emphasized that lis pendens requires a direct impact on property interests.

When Lis Pendens is Not Applicable

• Personal Property Disputes: Lis pendens cannot be used for legal actions involving personal property or unrelated claims.
• Inapplicable to Non-Tangible Interests: It is not applicable if the legal action does not directly impact the property’s title or ownership.
  • Virginia
    • Statutes and Case Law
      • Virginia Code § 8.01-268
        • Filing Procedures: Requires the filing of lis pendens with the clerk of the circuit court where the property is located, related to actions affecting title or interest in the property.
        • Impact: Provides notice to third parties of the pending litigation, potentially affecting the marketability of the property.
        • Case Law: In Gates v. Mackowiak, 314 Va. 557, 420 S.E.2d 737 (1992), the Virginia Supreme Court outlined the necessity for a bona fide property claim for lis pendens to be effective.

Lis pendens is a critical legal tool in property disputes, serving as a notice to third parties about pending litigation affecting real estate. However, it must be used judiciously and in good faith, as improper filings can lead to legal consequences. Understanding the applicable statutes and case law in Maryland, Washington, D.C., and Virginia ensures that parties are aware of their rights and obligations when dealing with lis pendens. A law firm can provide valuable assistance in navigating these complex issues, protecting clients’ interests throughout the process.