A California lis pendens is a recorded notice of pendency of a lawsuit that asserts a real property claim affecting specific real property. Once recorded with the county recorder, it can cloud title, affect a sale, and place lenders on notice that the property affected is subject to pending real estate litigation. Under the California Code of Civil Procedure (CCP), a lis pendens is only proper when the complaint seeks relief such as specific performance, imposition of a constructive trust, or determination of ownership or possession. If improperly recorded, a defendant can file a motion to expunge, and the court may award attorneys fees and costs. Anyone dealing with property situated in California should review the pleading carefully and consult counsel to ensure the claim has probable validity before proceeding.
For more details, keep reading.
The Legal Foundation: Code of Civil Procedure
The governing statute is found in the California Code of Civil Procedure. The CCP outlines:
When a notice of pendency may be recorded
What constitutes a real property claim
The procedural requirements for filing
The process to expunge an improper lis pendens
A lis pendens is not itself a lawsuit. It is a notice connected to an existing complaint filed in superior court. The underlying action must assert a real property claim. If it does not, the notice may be subject to expungement.
How It Affects Title
Once recorded, a lis pendens can affect title immediately. Buyers, lenders, and title companies will typically refuse to proceed with a sale or loan while the notice remains of record.
This is because:
The property may be subject to a claim of ownership
There may be a dispute regarding possession
The lawsuit outcome could change who holds title
Even if the defendant disputes the alleged claim, the mere presence of the notice can create serious practical consequences.
If you're planning to move to Western New York, or if you’re already a local resident, understanding how title issues and real estate litigation can affect property is just one part of navigating real estate transactions in Western New York. For more helpful tips on buying or selling property, be sure to check out our latest real estate insights at Carol Klein WNY Homes, where we cover local housing trends, property guidance, and market updates.
What Qualifies as a Real Property Claim
Not every lawsuit involving property allows a lis pendens to be recorded. The complaint must assert a real property claim that affects specific real property.
Definition of a Real Property Claim
Under the statute, a real property claim means the action seeks:
Determination of title or ownership
Specific performance of a real estate contract
Imposition of a constructive trust
Recognition of an easement
An interest in the property itself
For example, if a plaintiff asserts that a defendant agreed to sell property but failed to transfer title, the lawsuit may seek specific performance. In that circumstance, recording a lis pendens may be proper because the action directly affects title.
Similarly, if a party claims an easement obtained pursuant to a prior agreement, and that easement identified in the pleading affects the property affected, a lis pendens may be appropriate.
Improper Lis Pendens
An improper lis pendens arises when:
The lawsuit only seeks monetary payment
The claim does not affect title
The pleading does not sufficiently describe the specific real property
In such circumstances, the defendant may bring a motion to expunge the lis pendens in superior court.
If the court determines the real property claim lacks probable validity, it may order expungement and award attorneys fees to the prevailing party.
The Filing Process and Recording Requirements
The filing and record process must strictly comply with the Code of Civil Procedure.
Step 1: File the Lawsuit
Before recording a notice of pendency, the plaintiff must first file a complaint in superior court asserting a real property claim. The pleading must clearly describe the specific real property at issue.
The complaint should include:
A legal description of the property
The county where the property is situated
The nature of the ownership or interest asserted
The relief sought
Without a properly filed lawsuit, recording a lis pendens is not authorized.
Step 2: Record the Notice
Once the lawsuit is filed, the plaintiff may record the notice of pendency in the office of the county recorder where the property is located.
The recorded document must include:
The title of the court action
The names of the parties
A description of the property affected
This record serves as notice to anyone reviewing title records.
Step 3: Serve the Parties
California law requires that the defendant be served with the notice after recording. Failure to ensure proper service may provide grounds to expunge.
Strict compliance with procedural requirements is critical. Courts regularly scrutinize whether the filing was proper under civil procedure standards.
Expunging a Lis Pendens and Court Review
A defendant who believes a lis pendens is improper may file a petition or motion to expunge in the same court where the action is pending.
Grounds for Expungement
The court will examine:
Whether the pleading asserts a real property claim
Whether the claim has probable validity
Whether evidence supports the alleged interest
Probable validity means the claimant is more likely than not to prevail at trial. If the court finds the claim is not meritorious, it will order the notice removed from record.
Attorneys Fees and Costs
The statute provides that the prevailing party on a motion to expunge is generally entitled to attorneys fees and costs unless circumstances make such an award unjust.
This creates a significant risk for plaintiffs who record a lis pendens without sufficient evidence to support their claim.
Consequences of a Recorded Notice
While a lis pendens is pending, it may:
Prevent sale of the property
Prevent lenders from extending financing
Create a clouding title issue
Complicate negotiations between parties
In some cases, the notice acts as leverage in real estate litigation. However, misuse can result in serious legal and financial consequences.