Legal Question in Real Estate Law in California

You can transfer your home but that does not remove the lis pendes.

All it would do is cost you money, since you would have to pay a documentary transfer tax and probably increased property taxes. The whole point of a lis pendens is to make any transfer after the lis pendens is recorded subject to the outcome of the lawsuit that the lis pendens is issued in. The outcome of the lawsuit involving the property takes priority over any interest or ownership of the property acquired after it is recorded. So if you want to transfer the property to an LLC for business purposes and you think you will win or settle the lawsuit, you are free to transfer title to the LLC. But if you think transferring to an LLC will somehow protect you or save the property from the outcome of the lawsuit or the effect of the lis pendens, forget it. That is EXACTLY what the lis pendens PREVENTS from happening.

You can transfer or sell property encumbered by a lis pendens. However, a lis pendens (officially referred to as a "Notice of Pendency of Action") subordinates the rights of a subsequent transferee or encumbrancer to the rights of the plaintiff who recorded the lis pendens. Thus, you accomplish nothing. Also note the issues cited by Mr. McCormick regarding taxes and fees.

Finally, unless the LLC pays you fair market value, this may be a fraudulent transfer - i.e., on designed to "hinder, defraud or delay" an existing or anticipated creditor of the transferor. See Civil Code sections 3439 thru 3439.12.