what if there is a lis pendens on your listing?

Asked by John, Prescott Valley, AZ Thu Mar 26, 2009

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This question is about this property: http://www.trulia.com/homes/Arizona/Prescott_Valley/sold/400…

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4
Brad Bergami…, Agent, Prescott, AZ
Thu Mar 26, 2009
Depends on what the Lis Pendens is for. Anyone can file and record this and sometimes there is no ground for it. Title Insurance will have to remove this usually to issue new title insurance. In current practice, a lis pendens is a written notice that a lawsuit has been filed concerning real estate, involving either the title to the property or a claimed ownership interest in it. The notice is usually filed in the county land records office. Recording a lis pendens against a piece of property alerts a potential purchaser or lender that the property’s title is in question, which makes the property less attractive to a buyer or lender. After the notice is filed, anyone who nevertheless purchases the land or property described in the notice takes subject to the ultimate decision of the lawsuit.

A foreclosure will wipe out a lis pendens, unless the mortgage or other lien which is being foreclosed was created after the suit was filed.

Good luc, talk to an attorney
Web Reference:  http://bradbergamini.com
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Patrick Schu…, Agent, Prescott, AZ
Thu Mar 26, 2009
As Randy says below, it depends. I recently sold a parcel near Kingswood in Prescott that had a lien on it, but it was removed during escrow once the the lien holder was included in the settlement.

Good luck. :) PS
0 votes
Christin Kin…, Agent, Prescott Valley, AZ
Thu Mar 26, 2009
If you put your property up for sale any potential buyers will be able to see that there is a pending legal action against the property and that anyone looking to acquire such property is doing so subject to future possible judgments.
I hope this is helpful.
0 votes
Randy Hooker, Agent, Chandler, AZ
Thu Mar 26, 2009
If tehre is a Lis Pendens on the property, then it cannot be sold/closed/recorded. The title company would consider it a "cloud" on title. But it could theoretically be listed. Just depends on the circucmstances. If it's your property/listing, I would recommend that you consult with an attorney and perhaps an Escrow Officer at your preferred title company.

Hope that helps. Without knowing more details behind your question, that's about as good as I can do.

...randy
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