Lis Pendens in California: Can You Sell a House With One Recorded?
A lis pendens in California is a recorded notice that a lawsuit has been filed that claims an interest in a specific property. If someone has recorded one against your house, you’ll likely find it hard to sell or refinance until it’s resolved. It doesn’t mean you’ve lost the house, but it does mean any buyer would be taking the property subject to the outcome of that lawsuit.
We’ve been buying houses in California since 2003, and title problems come up more often than most sellers expect. We’re not attorneys, and a lis pendens is tied to active litigation, so please work with a real estate attorney. Here’s an overview to help you understand what you’re dealing with.
What Is a Lis Pendens?
“Lis pendens” is Latin for “suit pending.” In California, the formal name is a Notice of Pendency of Action, governed by the Code of Civil Procedure starting at section 405.20. A party to a lawsuit can record one with the county recorder when the lawsuit includes a real property claim, meaning a claim that would affect title to, or the right to possess, a specific property.
Once recorded, it puts the world on notice. Anyone who buys or lends on the property afterward generally takes it subject to whatever the court decides.
Common Reasons a Lis Pendens Gets Recorded
- Disputes between co-owners, such as a partition lawsuit between siblings who inherited a house
- A buyer claiming you must sell to them under a contract (a specific performance claim)
- Quiet title lawsuits over who actually owns the property
- Fraud or forged deed claims
- Some divorce or family disputes involving the house
- Lawsuits to foreclose a lien, like a contractor’s mechanics lien
A lawsuit that’s only about money, like an unpaid bill, generally doesn’t support a lis pendens. That’s one of the most common grounds for getting one removed.
How a Lis Pendens in California Affects Selling
A lis pendens is a cloud on title. In practice:
- Title companies typically won’t issue a clean title policy while it’s recorded
- Lenders generally won’t fund a buyer’s loan
- Most buyers will walk away once it shows up in the preliminary title report
- Escrow usually can’t close normally until it’s withdrawn, expunged, or the case is resolved
Our guide to clouded title in California covers other title issues that can stall a sale, like liens and old deeds.
How a Lis Pendens Can Be Removed
There are a few common paths. An attorney can tell you which fits your case.
1. The party who recorded it withdraws it
If the dispute settles, the claimant can record a withdrawal of the notice. Many settlements include this as a condition, and escrow can coordinate it with the sale.
2. A motion to expunge
The property owner can ask the court to expunge (remove) the lis pendens. Under California law, the court generally must expunge it if the lawsuit doesn’t contain a real property claim, or if the claimant can’t show the claim is probably valid. The losing side of an expungement motion may have to pay the other side’s attorney fees, which is something to discuss with your lawyer.
3. The lawsuit ends
If the case is dismissed or decided, the lis pendens can be removed as part of wrapping it up.
4. Procedural problems
California has specific requirements for recording and serving a lis pendens. If they weren’t followed, an attorney may be able to challenge it on that basis.
Your Options if You Need to Sell
- Resolve the lawsuit first, then sell normally through a regular listing. This often brings the best price if you have time.
- Settle and close together. Sometimes the sale itself funds the settlement, with escrow paying the claimant and recording the withdrawal at closing. Your attorney and the title company would coordinate this.
- Talk to a buyer who handles title problems. Some cash buyers will look at houses with title issues, usually with the attorney and title company involved.
Whether we can buy a house with a lis pendens is case by case, depending on the type of lawsuit and how close it is to resolution. When we do make an offer, it’s based on comparable sales, the work the house needs, and our holding and resale costs, and closing goes through a licensed title and escrow company. If the dispute is between family members over an inherited house, our page on selling inherited property with multiple owners may help.
When a Cash Sale Isn’t the Best Option
If the lis pendens is likely to be withdrawn or expunged soon, and the house is in good shape, waiting and listing it with an agent will often get you a higher price. A cash sale tends to make more sense when the house also needs significant work, you need to move on, or a sale is part of settling the dispute and everyone wants a straightforward close.
Frequently Asked Questions
Technically yes, but any buyer takes it subject to the lawsuit, so most buyers, lenders, and title companies won’t proceed until it’s resolved. Some sales close as part of a settlement where the lis pendens is withdrawn at closing.
Generally until it’s withdrawn, expunged by the court, or the lawsuit ends. Ask your attorney about your specific timeline.
Common routes are a recorded withdrawal by the party who filed it, a court order expunging it, or resolution of the lawsuit. An attorney can advise whether a motion to expunge makes sense.
No. A lien is a claim for money secured by the property. A lis pendens is a notice that a lawsuit affecting title or possession is pending. Both can cloud title.
Generally no. A lis pendens is meant for lawsuits with a real property claim. A purely money claim is a common reason a court expunges one.
Talk It Through
If a lis pendens or other title issue is holding up your sale, we’re happy to talk through your situation and, where it makes sense, give you a no-obligation cash offer. No pressure. Call Lawrence at (510) 824-8710 or fill out the form below.