Legal Question in Real Estate Law in California
lis pendence
Will fileing a LIS PENDENCE effect the sale of a house?
My ex-fiancee granted a real property lien of $50,000.00
for his interest in the property to his lawyer. He lived in the house four years and I have lived there eleven. I don't feel his share of the equity should be that much.
3 Answers from Attorneys
Re: lis pendence
A "lis pendens" is proper only when there is a lawsuit pending that affects the ownership (title) or right of possession (e.g., under a lease) of real property. A lis pendens cannot be employed nor a lien created where the person granting the lien has no claim to ownership.
You bet the presence of a "lis pendens" on the record will affect the sale of a house! It is a great big red warning flag that title or possession issues are being contested in court, and it subordinates any rights subsequently obtained to the litigated claims.
Your question aptly states how long each of you has lived in the house, but you leave out the MOST important piece of information: Who owns the house? That question is partly answered by whose name or names appear on the title as recorded down at the courthouse, but the inquiry doesn't end there. Sometimes a person may be entitled to a greater share of ownership (equity) based on share of the down-payment made, or be entitled to significant reimbursement for excess contributions to necessary expenses such as mortgage payments, property taxes, insurance and upkeep.
Please contact me directly with ownership and other information, and I may be able to give you further free advice, including whether the lis pendens ought to be expunged, as it may be highly improper. Also, if there is a lawsuit, have you filed an answer yet, and if you have not, are you aware of the deadline and do you need assistance getting a timely answer filed and served?
Re: lis pendence
Mr. Bennett is correct; there are several legal issues involved that we doubt you can resolve by yourself, especially when the other side has an attorney who anticipates a $50,000 in fees battle.
Since there is no common law marriage in California, the two of you have no community property funds issue. If you bought the house 11 years ago and for the last 4 years he has shared equally in paying the mortgage, repairs, utililties bills, he may be entitled to a percentage of the profit from selling the home but a majority of the equity in it is yours. A lien can not be filed without a judgment against you existing. The exemption under the homestead laws may be involved. You may need to contact the local Bar Association as to whether the lien is okay under Code of Professional Conduct #300-10 [not sure if that is the correct number] as there are rules that an attorney must follow in being able to establish a valid lien and there may be a conflict of interest here so tha the lien is improper.
You need an experienced attorney to sort out all the real estate and other questions.
Re: lis pendence
If I were you, I would retain a real estate attorney ASAP.
A "lis pendens" (I corrected your spelling) comes to us thank to our historical following of old English "common law". It means a law suit is pending. It is more commonly called a "notice of pendency in action".
Courts will take jurisdiction over the property until a law suit is completed.
Basically, it warns potential buyers of a law suit, and that there very well could be a cloud on the title.
It will absolutely have a negative effect on the title. See an attorney at once! Otherwise, it will be almost impossible to sell.