Legal Question in Real Estate Law in California

You need an attorney to find out what the lawsuit is about. A lis pendens is the Latin legal jargon for a "notice of pendency of litigation." In California, they are filed when someone is contesting some aspect of the title to the property. Sometimes there are recorded inappropriately, like when someone feels the owner of the property owes them money, and there are legal remedies to have them removed if they were recorded inappropriately.

My best advice for you is to get a copy of the lis pendens and speak to an attorney. I've handled cases like this before, but you will need to find out what is going on sooner rather than later.

A properly-recorded lis pendens (in California statutes, referred to as a "notice of pendency of action" rather than by the old legal-Latin term) is "notice to the world" of the lawsuit, so it's probably immaterial that the seller didn't disclose the lawsuit. What to do at this point depends upon how much time and how many resources you have, how badly you want the property, and what your purchase contract says.

First and foremost, note that if you buy the property, your interest will be subject to the outcome of the lawsuit. This strongly suggests that if time permits and you have ready access to a lawyer, you must have the lawsuit looked up at the courthouse, and determine whether the plaintiff's claims are something you want to deal with.

Another important decision factor is whether you are legally bound by the purchase agreement. Ordinarily, a buyer could get out of a purchase if the seller failed to disclose a major problem with title, but you had constructive notice if the lis pendens were properly recorded before you signed the purchase agreement. Here again, a lawyer's advice would be very desirable.

Frequently, purchase agreements contain contingencies, e.g., closing is conditional upon buyer getting a loan with certain terms. When the lis pendens and lawsuit come to the attention of the lender, it'll probably refuse to loan.....therefore, the financing contingency might provide an escape route from the deal. Very possibly there are others

Also, as Mr. Roach points out, some percentage of lites pendentes (which I think is the proper plural of lis pendens) are improper and never should have been recorded in the first place; if that's the case here, it can be expunged, and in all probability, the underlying lawsuit will no longer affect title to the property. However, only a fairly experienced real estate lawyer would be able to decide that expungement was reasonably certain to be granted upon application to the court.

On balance, I think getting out of the deal is going to be your safer and better route, and you should focus on figuring out what your cancellation rights are ..... with help from a lawyer.

Unless this is a one of a kind house that you can not live without it may not be worth the hassle. However, you need to have an attorney look at all the paperwork and when the lis pendens was filed. If you are looking for legal representation and are willing to drive to Tarzana, feel free to call my office at 818 345 0123