can you sell a property with a lis pendens

Can You Sell a Property With a Lis Pendens (Lawsuit Pending)?

While you can sell a property with a lis pendens, some find the process daunting and buyers can be put off.

But, that doesn’t make it impossible.

A strategic approach, legal expertise, and proactive measures can pave the way for a successful sale, even in the face of a pending lawsuit.

So, let’s dive into our article to navigate a property sale when a lis pendens is looming. 

Disclaimer: The information provided in this article is for educational purposes only and should not be construed as legal advice. We are not experts in legal matters, and readers are encouraged to seek the proper professional legal counsel for specific guidance.

Can You Sell a Property With a Lis Pendens?

Yes, you can sell a property with a lis pendens. The lis pendens complicates matters, suggesting a legal claim and deterring buyers. Yet, with strategic moves and legal advice, selling a house with a lis pendens or pending lawsuit is entirely possible. Understanding filing, law-related consequences, and buyer considerations is crucial.

Knowing how to find real estate investors who look beyond issues that others find off-putting is a key part of the process, since such properties can actually provide them with a decent return.

Can You Sell a Property With a Lis Pendens to Us?

Selling a home with a lis pendens in Southern California? No worries—we’re here for you. 

  1. Call us at 951-331-3844 or fill out the form below for a fair cash offer if you’re considering the option of selling your house to an investor.
  2. Our team will quickly respond, discussing your property and scheduling a convenient inspection to assess its value.
  3. Our in-house inspector will provide a fair cash offer, and if accepted, consider your property is sold!
  4. Choose your closing date, and we’ll handle the rest with flexible payment options, making the process smooth even with a lis pendens. Selling your home with a reverse mortgage has never been easier!

How Selling Property During a Lawsuit Potentially Affects a Sale

A quick sale of a piece of real estate can help resolve law-related matters swiftly, benefiting both parties and providing negotiation leverage.

However, the downside is that the presence of a lawsuit might discourage potential acquirers, impacting the property’s value and prolonging the selling process. 

The legal complexities involved can also complicate the transfer of ownership, limiting financing options and prospective buyer interest.

It’s crucial to strike a balance, considering the specifics of the lawsuit, and navigate the sale with transparency and strategic communication to ensure a smooth process amidst legal challenges.

Reasons For Selling a House With a Pending Lawsuit

When it comes to real estate transactions entangled in a law-related battle, various reasons prompt homeowners to navigate this challenging process.

Let’s dig into some of the compelling reasons driving this complex decision…

Battle of Ownership

Disputes over claimed ownership interest represent a significant law-related hurdle that may usher individuals to market a home amid a lis pendens.

Whether arising from unclear title issues, co-possession conflicts, or inheritance disputes, battles over who holds rightful ownership can be intricate and emotionally charged.

In such cases, selling the property becomes a pragmatic solution to resolve ownership conflicts and untangle the juridical concerns involved.

The need for a clean break from the law-related entanglements often drives the decision to market the property in the midst of a battle of possession. It allows all involved parties to move forward, settling disputes and avoiding prolonged court proceedings.

Mortgage Foreclosure Action

Facing foreclosure is an emotionally charged ordeal that frequently drives homeowners to market their property while entangled in a lawsuit, seeking a lifeline to stop foreclosure.

The looming risk of home loss due to unpaid liens or mortgages compels proactive measures. Selling before the foreclosure concludes provides a solution benefiting homeowners and offering distressed properties to potential buyers.

Financial hardships, like job loss or medical expenses, may trigger foreclosure, prompting property sales to regain financial stability. It highlights the importance of timely action to navigate how to file a lis pendens while mitigating the potential repercussions of foreclosure in both pre-foreclosure vs foreclosure scenarios.

Additional reading: Can I sell my house to avoid foreclosure

Unpaid Debts and Property Taxes

Unsettled debts and overdue invoices frequently usher homeowners to ponder selling their property, settling financial disputes arising from contractual disagreements, construction liens, or unpaid service bills. This strategic move offers a clean slate for both the homeowner and potential acquirers, untangling law-related complexities.

Simultaneously, the burden of delinquent property tax payments prompts homeowners to contemplate a sale amid a lis pendens.

Whether due to financial hardships, changing circumstances, or oversights, marketing strategically addresses tax-related challenges and eliminates the threat of juridical repercussions. This approach result in homeowners to regain financial stability, presenting buyers with a property unencumbered by tax issues.

Divorce and Marital Disputes

Divorce frequently necessitates the sale of a jointly-owned property, especially when both parties cannot agree on its division, compelling individuals to consider selling a house after a divorce agreement. In these situations, where a lis pendens is recorded, navigating the law-related landscape becomes paramount.

These recorded law notices serve as public announcements of ongoing law proceedings, impacting the property’s marketability. In such situations, sellers must carefully navigate juridical timelines and obligations.

This guarantees a fair distribution of assets and a just resolution for the property, allowing both parties to move forward independently. The lis pendens recording serves as a tangible notice, making prospective buyers and the public aware of the legal complexities associated with the property, particularly regarding title to the property.

Additional reading: Who gets the house in a divorce

Estate Planning and Probate Issues

Executors or heirs may choose to transfer possession of the property to streamline the probate process, address outstanding debts, and distribute assets among beneficiaries in accordance with the deceased’s wishes.

This decision often involves a meticulous evaluation of what the home is worth and initiating law proceedings to sue for possession claims. As this purchasing process begins, it’s crucial to navigate the law-related intricacies associated with probate, understanding that, technically, either the acquirer or the seller may encounter unique challenges in this context.

Additional reading: What happens when one sibling is living in an inherited property and refuses to sell

Business Failures and Bankruptcy

Entrepreneurs facing business failures or bankruptcy may find it necessary to market their property during a lawsuit to satisfy creditors and address financial obligations. This proactive step involves a strategic evaluation of the property’s worth and determining the most effective way to address outstanding debts.

In some cases, the decision to remove from the property may serve as an example of a responsible approach to financial challenges. This pre-emptive action aims to prevent potential complications, such as the need to foreclose on the property, allowing the property owner to navigate the juridical landscape associated with business debts more effectively.

Property Condition and Repair Costs

Significant repair costs or title issues related to the overall home value of the property may prompt homeowners to transfer possession during a lawsuit.

Whether due to structural issues, extensive repairs, or deferred maintenance, the decision to market property can be influenced by the desire to offload a property that requires substantial investments or may face juridical scrutiny related to its condition.

The Pros and Cons of Buying a House With a Pending Lawsuit

Buying a home with a lis pendens is a decision that requires careful consideration of the potential advantages and disadvantages.


  • Negotiation Leverage: Home purchasers will most likely be willing to pay when purchasing a property with a lis pendens, potentially leading to a lower purchase price or more favorable terms.
  • Opportunity for a Bargain: Motivated sellers may be willing to offer a discounted price to expedite the sale and address law-related concerns. For acquirers, this can translate into snagging the property at a more affordable cost.
  • Potential for a Quick Sale: The eagerness can work in favor of buyers, expediting the purchase process and allowing them to claim possession sooner.


  • Legal Uncertainty: Could lead to complications in the possession transfer process and potential law-related headaches down the road.
  • Financing Challenges: Lenders may be hesitant to provide loans, and this could limit the pool of potential buyers.
  • Potential Delays: The presence of a lawsuit may prolong the closing process, causing delays that can be inconvenient for buyers, especially those with specific timelines or deadlines for moving.

Can a Lis Pendens Stop a Sale? Our Conclusion

Here are the key takeaways to keep in mind:

  • Law-Related Hurdles: Prospective buyers may encounter challenges securing financing or face delays in the closing process due to unresolved law-related matters.
  • Negotiating Power: Despite the complications, sellers and buyers can use the presence of a lis pendens strategically. Property owners might be motivated to negotiate more favorable terms, and buyers, if well-informed, can leverage the situation to secure a bargain potentially.
  • Uncertainty for Buyers: Juridical uncertainties, potential delays, and the risk of inheriting the property’s juridical concerns make it a decision that demands a thorough understanding of the associated risks.

While a lis pendens can introduce significant complexities, it doesn’t necessarily bring a sale to a screeching halt. Instead, it adds a layer of intricacy that demands strategic navigation.

Sellers and buyers alike must approach such transactions with caution, informed decision-making, and the guidance of an attorney to ensure a successful outcome in the face of law-related uncertainties.

If you’re in South California, contact us today to see how you can sell your property to us without issues

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