Lis Pendens
A lis pendens is a recorded notice that a lawsuit affecting title to a specific property is pending — it clouds the title and warns any potential buyer or lender that ownership could change based on the case's outcome.
It's filed with the county recorder and tied to litigation such as a boundary dispute, partition action, divorce, or contract dispute, and it stays on title until the case resolves or a court expunges the notice.
California Code of Civil Procedure Section 405 governs lis pendens filings. An improperly filed one can be challenged and expunged, but until that happens, most title companies won't insure a sale.
A property with an active lis pendens is essentially unsellable through a normal listing, since buyers' lenders won't close on clouded title. Resolving or working around the underlying lawsuit, typically with an attorney's involvement, is usually the first step before any sale — cash or otherwise — can close.
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