If you’ve just discovered a lis pendens attached to your property – right in the middle of trying to sell it – you’re probably wondering whether the sale is still even possible.
The short answer is yes. But there’s a lot more to it than that, and going in unprepared can cost you time, money, and a deal that was already on the table.
What Is a Lis Pendens?
Lis pendens is a Latin term that translates roughly to “suit pending.” In real estate, it refers to a formal public notice that a lawsuit has been filed involving the property – and that the outcome of that lawsuit could affect ownership or title rights.
Once recorded with the county, it becomes part of the property’s public record. Any buyer, lender, or title company doing their due diligence will find it immediately.
Common reasons a lis pendens gets filed include:
- Divorce proceedings where both parties claim rights to the home
- Inheritance disputes between heirs
- Breach of contract claims related to a prior sale
- Foreclosure actions initiated by a lender
It’s worth understanding that a lis pendens doesn’t prove anyone’s claim to the property. It simply signals that the matter is unresolved and that whoever buys the property takes on the legal risk along with it. That’s exactly why it scares off most conventional buyers.
What Does It Actually Do to Your Title?
A lis pendens creates what’s called a “cloud on title.” This means that the property’s ownership status is legally uncertain until the dispute is resolved. Title insurance companies generally won’t issue a policy on a property with an active lis pendens, and without title insurance, most buyers can’t close – especially those using a mortgage.
So even if you find a willing buyer, the deal can still fall apart when the title company does its search. This happens more often than sellers expect, and by that point you’ve already lost weeks.
The costs don’t stop while you’re waiting for the legal process to play out. Mortgage payments, property taxes, and maintenance expenses keep accumulating, making a drawn-out dispute especially damaging for sellers who are already under financial pressure.
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Can You Actually Sell a Home With an Active Lis Pendens?
Yes, legally you can. But you need to be realistic about the market you’re working with.
Traditional buyers using mortgage financing are essentially off the table. Lenders won’t approve a loan on a property with a clouded title, and most buyers aren’t willing to take on someone else’s legal problem. Even if a buyer is willing, their bank almost certainly won’t be.
That leaves two realistic paths:
1. Cash buyers who specialize in distressed or legally complicated properties. Companies like Doctor Home are built specifically for situations like this. They understand how lis pendens filings work, they don’t rely on traditional financing, and they can move quickly without requiring a clean title upfront.
2. A conditional sale structured around legal resolution. In some cases, a buyer will agree to purchase the property contingent on the lis pendens being resolved by a certain date. The funds are held in escrow, and if the case isn’t resolved in time, the buyer can walk or renegotiate. This approach requires a solid purchase agreement and an attorney who knows what they’re doing.
How to Navigate the Sale
If you’re committed to moving forward despite the lis pendens, here’s what gives you the best chance of actually closing:
Sell as-is to a cash buyer. This is the fastest and most predictable route. You skip the repairs, skip the financing contingencies, and work with someone who already knows how to handle the legal complexity.
Use an escrow arrangement. If a buyer is willing to proceed but wants protection, a conditional escrow can work. The buyer deposits funds, and both parties agree on a timeline for resolving the dispute. A real estate attorney should draft this – it’s not something to piece together on your own.
Hire a real estate attorney early. This is non-negotiable. An attorney can review whether the lis pendens is even legally valid, advise you on timing, and draft agreements that protect your interests through closing. Missouri law requires sellers to disclose a lis pendens to any prospective buyer, so trying to move the sale forward quietly isn’t an option anyway.
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How to Remove a Lis Pendens
Clearing the lis pendens opens the door to a much wider buyer pool and removes the biggest obstacle to a clean closing. There are a few ways to accomplish that:
File a motion to expunge. If the underlying lawsuit has no merit, has been resolved, or doesn’t actually affect the property’s title, you can petition the court to remove the lis pendens. You’ll need to demonstrate one of those conditions clearly.
Negotiate a settlement. A large percentage of lis pendens situations stem from disputes that could be settled without going to trial. A negotiated resolution is almost always faster and cheaper than litigation.
Win in court. If the case does go to trial and you prevail, the lis pendens is dismissed as part of the ruling.
Each of these paths requires legal help. This isn’t a process you should try to navigate alone, especially if there’s a sale on the line.
Lis Pendens vs. a Lien – What’s the Difference?
These two often get confused, but they’re distinct issues.
A lien is a financial claim against the property – typically for unpaid taxes, contractor bills, or outstanding HOA fees. Liens can often be paid off at closing and removed relatively quickly. They’re a common part of real estate transactions and title companies deal with them routinely.
A lis pendens, by contrast, flags an active legal dispute that could affect who actually owns the property. It’s harder to resolve because it requires legal action, not just a payment. You can’t write a check to make a lis pendens go away.
That said, it’s not uncommon for a property to have both a lis pendens and one or more liens at the same time – particularly in foreclosure situations. In those cases, the sale becomes more complex, but it’s still doable with the right buyer and the right legal team.
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The Role of a Real Estate Attorney
If there’s one consistent theme throughout this whole situation, it’s that legal representation isn’t optional – it’s the foundation of any viable strategy.
A real estate attorney can assess whether the lis pendens has legitimate legal standing, advise you on whether to fight it or negotiate a settlement, draft conditional sale agreements or escrow arrangements, and file the appropriate motions if removal is possible.
They can also help you understand the timeline realistically. Depending on the nature of the underlying lawsuit and the court’s docket, resolution can take anywhere from a few weeks to a couple of years. Knowing what you’re actually up against helps you make a better decision about whether to wait it out or sell now.
Doctor Home works alongside real estate attorneys on cases like this regularly. That experience allows them to evaluate the legal situation quickly and make a fair cash offer even when the paperwork is far from clean.
The Bottom Line
A lis pendens doesn’t have to be the end of your sale. It does mean that the traditional route – list, show, accept an offer, close with a conventional buyer using a mortgage – probably isn’t going to work. But that’s not your only path.
If you’re dealing with financial pressure, a contentious legal dispute, or just want to stop carrying a property that’s tied up in court, selling to a cash buyer who knows how to handle these situations is often the most practical exit available.
The key is going in with accurate information, qualified legal counsel, and a buyer who isn’t going to panic when they see the lis pendens in the title search.
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FAQs
Can you sell a home with an active lis pendens? Yes, though traditional financing is off the table. Cash buyers are the most realistic option for moving quickly.
How long does a lis pendens stay on a property? Until the lawsuit is resolved or the court orders its removal. That could be a few months or several years depending on the case.
Does a lis pendens affect title insurance? Yes. Most title companies won’t issue a policy until the lis pendens is cleared, which makes conventional sales very difficult.
How do you get a lis pendens removed? Through a settlement, a court ruling in your favor, or a motion to expunge filed by your attorney.Is it worth selling now while the dispute is still active? That depends on your financial situation and your tolerance for ongoing legal costs. For many sellers, taking a cash offer now beats waiting months or years for a resolution.
