Importance of the Lis Pendens

Significant problems that can arise if the lis pendens is not properly filed. For example, an owner of property against which there is a notice of lien filed sells the property to Purchaser. If the lien claimant commences an action to foreclose the lien and does not file a lis pendens, Purchaser’s interest in the property will not be affected by the foreclosure if he is not made a party or does not have actual knowledge of the commencement of the action. In other words, the lien claimant will have nothing to foreclose on. True, the lien does attach to the title of the property, but without the filing of a lis pendens or without making Purchaser a party to the action or without his having actual knowledge of the commencement of the action, the foreclosure will be ineffective against his title.

If, after a lis pendens is filed, the lawsuit is settled or resolved in some way other than a final judgment, the lien claimant’s attorney should prepare and file a release of lis pendens (in addition to a release of lien as discussed below) in the county recorder’s office. This will provide notice to any interested parties that the lien claimant no longer maintains an action to foreclose on the property.