LawProblems.com -- Answers to Questions About Real Estate Law
Money and real estate news you can use everyday
 
           

Home
Real Estate Lawyer
Question of the Week
Tip of the Week
Recommended Books
Resources
Glossary
Contact Sam

Understanding A Lis Pendens

Ask the Real Estate Lawyer: Real Estate Law Q&A

REM #LAW 746

By Ilyce R. Glink and Samuel J. Tamkin

Summary: A ThinkGlink reader would like to learn more about a lis pendens, or a notice of a pending law suit regarding a property. It is used to protect the plaintiff's possible interest against the property.

Q: If a lis pendens is recorded on a property, I know commercial lenders won't grant a mortgage or otherwise get involved with the property.
(article continues below useful links)

But can private individuals still record a lien on the property? Does a lis pendens legally prevent the recording of a lien?

And if a private individual records a lien against the property, does this mean the lien is somehow junior to the lis pendens? How exactly does this work, since a lis pendens has no dollar value.

A: Simply put a lis pendens is a document recorded against real estate that gives the world notice of a pending law suit.

To protect the plaintiff’s possible interest in the defendant’s property (if the plaintiff might be able to collect on the judgment by taking his or her property), under some circumstances, the plaintiff is permitted to file a document on the title to that property giving everybody notice of his or her claim to it. Anybody coming after that date would have to follow the first party’s claim to the property.

If the plaintiff loses the case, the lis pendens is released. If the plaintiff wins the case, the property could be sold to satisfy the judgment against the defendant. If there’s more value in the property than the judgment, other lien holders, including other people who might have sued the defendant and may have filed lis pendens would receive the balance.

While the lis pendens has no monetary value, it does protect the plaintiff from actual or potential claims that may come later. But the actual value of the lis pendens will not become known until there is a judgment in the case.

Samuel J. Tamkin is a Chicago-based real estate attorney. Ilyce R. Glink’s latest book is 50 Simple Steps You Can Take To Sell Your Home Faster and For More Money In Any Market. If you have questions for them, write: Real Estate Matters Syndicate, PO Box 366, Glencoe, IL 60022 or contact them through Ilyce’s website www.thinkglink.com

 

 

 

RSS Feeds

RSS 0.91 Feed
RSS 1.0 Feed
RSS 2.0 Feed
ATOM Feed

Home Buying   Using Attorneys to Buy a Home - Earnest Money - Quitclaim Deeds - Easements - Seller Misreprensation - New Construction - Buying with Partners - Home Inspections - Seller Problems - Agent Issues
Home Selling    Using Attorneys to Sell a Home - Seller Disclosure laws - Title Problems - Buyer Problems - Real Estate Agent Issues - Tax Considerations
Home Ownership   Neighbor Problems - Seller Misrepresentation And Fraud Issues - Problems In a Condominium Development - Problems Around The House - New Construction Issues - Subdividing Land
Home Renovation   Architect Issues - Contractor Issues - Problems With Contractors - Inspection Issues - Certificate Of Occupancy - Municipal Inspections - Punch List Issues - Financing Issues - Installment Contracts
Real Estate  
Financing
 
Loan Application Problems - Refinancing Issues - Paying Off An Old Loan - Credit Problems - Seller Recommended Lender - Prepaying A Loan - Prepayment Penalties - Predatory Lenders
Investment  
Property
 
1031 Exchanges - Financing Investment Properties - Landlord and Tenant Issues - Partnership and Company Considerations - Tax Considerations - Subdividing Land
 
Contact Us | Sitemap | Terms of Use | Copyright ©2001-2005. ThinkGlink Inc. All rights reserved.
Reproduction of material from any www.LawProblems.com pages without written permission is strictly prohibited.
Site design by Walker Sands Communications