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Updated about 21 hours ago on . Most recent reply
Filing Lis Pendens - What are my options?
I have a property under contract in North Charleston and it's got some title and survey issues. The seller claims that there is nothing wrong w/ the title and that the property is able to be sold. I've spoken w/ two attorneys and they've said that's not the case. The seller is actively talking w/ other buyers.
I have a clause in my purchase agreement extending closing for up to a year if there are title issues. I've put my earnest money down and filed the lis pendens, but have not filed the actual law suit yet.
I'd like to retain my rights to purchase this property and most importantly, not allow the seller to sell this out from under me. I've heard of cases where the lawsuit was filed and another buyer contacted the person who filed the lis pendens and they were able to get their interest bought out. I'd be OK with that too.
Anything specific I need to do here to achieve that outcome? Will the lis pendend only last for the year as stated in my contract or would it extend indefinitely since the seller did not perform her part of the contract?
Most Popular Reply
Filing a lis pendens basically clouds the title so no one can buy or sell without knowing there’s a legal dispute tied to the property. That’s good — it scares off most buyers or forces them to talk to you first.
Now, the clock on your lis pendens doesn’t run out just because your contract says closing is extended for a year.
The lis pendens stays active as long as there’s an open lawsuit. Right now, since you haven’t filed suit, your lis pendens is technically weak and can be challenged or discharged. Sellers or other buyers could argue you’re just tying up the property without legal grounds.
What you need to do next is pretty straightforward: file the actual lawsuit to enforce your contract rights (specific performance is the typical claim). Once the lawsuit is filed, your lis pendens becomes solid because it’s tied to an active case.
That’s what keeps the property locked down. You can always negotiate an exit (like getting bought out) after you have more leverage.
If you don’t file, your lis pendens could get thrown out for being baseless. If you do file, the lis pendens stays attached until the court settles things, even if it takes longer than a year.