Question 1

How does a lis pendens affect Florida property title?

Accepted Answer

Title effect: the lis pendens creates a cloud on the title. Any person who acquires an interest in the property after the lis pendens is recorded (buyer, lender, judgment creditor) takes their interest subject to the outcome of the litigation. This means: if the filing party wins the lawsuit, the judgment is enforceable against the property regardless of subsequent transfers. The lis pendens is: binding on all subsequent purchasers and lienors (they are deemed to have constructive notice of the pending litigation), recorded in the official records of the county where the property is located, and effective from the date of recording (not the date of filing the lawsuit). Title companies will show the lis pendens as an exception on the title commitment and will not insure over it.

Question 2

What is the relationship between a lis pendens and a foreclosure in Florida?

Accepted Answer

Foreclosure relationship: in every Florida foreclosure action, the lender files a lis pendens at the time the foreclosure complaint is filed. The lis pendens: provides constructive notice that the property is in foreclosure, prevents the borrower from transferring the property to avoid foreclosure, establishes the lender’s priority over subsequent interests, and remains in effect until the foreclosure is completed (by sale or settlement) or dismissed. If the borrower sells the property during the foreclosure, the buyer takes subject to the lis pendens and the foreclosure action. This is why most buyers will not purchase property with a pending lis pendens.

Question 3

Can a Florida lis pendens be filed in a contract dispute that does not directly involve property?

Accepted Answer

Limitation: Section 48.23 requires that the lis pendens relate to an action that could "affect the title to real property or the right of possession thereof." A contract dispute that does not directly involve the property (such as a personal injury claim or a breach of contract that does not seek a remedy affecting the property) does not support a lis pendens. Florida courts have held that: money damages claims do not support a lis pendens (even if the plaintiff intends to enforce a judgment against the property), claims for unjust enrichment do not support a lis pendens (unless the claim specifically seeks an equitable lien on the property), and employment disputes do not support a lis pendens. Filing a lis pendens without a proper basis can result in sanctions and damages.

Lis Pendens Notice Pending Litigation Property

Lis Pendens and Florida Property Title

Title Effect

Foreclosure Relationship

Limitations

Related Terms

Barnes Walker Real Estate Litigation

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