Can You Sell a House with Lis Pendens?

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Selling a home is rarely simple. Homeowners under financial distress wonder: Can you sell a house with a lis pendens? The short answer is yes, but the process is filled with obstacles. A lis pendens means “suit pending,” and it signals that a legal dispute over the property has been filed and recorded in public records. While the homeowner still holds legal ownership and can technically list the property for sale, the practical challenges often prove daunting.

Lis pendens most often appear in connection with foreclosure actions. According to real estate data provider ATTOM, there were 357,062 total foreclosure filings in the U.S. in 2023, which decreased to 322,103 in 2024. These figures include default notices such as lis pendens, scheduled auctions, and bank repossessions. Even though filings are declining, the numbers remain substantial, underscoring how common it is for sellers to face this obstacle.

For homeowners, the presence of a lis pendens creates an immediate barrier to a smooth transaction. Buyers are wary of stepping into active litigation, lenders hesitate to approve financing, and title companies often refuse to insure the transfer. Understanding what a lis pendens means, why it’s filed, and how it affects a potential sale is essential for anyone navigating this stressful situation.

What Is Lis Pendens?

The term lis pendens comes from Latin and translates to “suit pending. In real estate, it is a public notice that alerts potential buyers, lenders, and anyone else reviewing property records that the property is the subject of a pending lawsuit. Unlike rumors or verbal disputes, a lis pendens is an official filing with the court and the county recorder’s office. Once recorded, it becomes part of the property’s title history and signals that ownership or financial claims are under legal review.

When a lis pendens is attached to a property, it creates what’s called a “cloud” on the title. This cloud doesn’t take away ownership, but it prevents the seller from transferring a clear title to a buyer until the lawsuit is resolved or the filing is removed. Because buyers and lenders want certainty, the existence of a lis pendens often brings a transaction to a standstill.

Homeowners and buyers can see lis pendens filings by checking their local county recorder’s office or through a title search. They are most commonly uncovered through a title company’s title search. Title companies flag it immediately during a standard sale process. Once it appears in public records, it is visible to anyone, and this transparency is what makes selling with a lis pendens so difficult.

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Why Lis Pendens Are Filed (6 Most Common Scenarios)

A lis pendens appears when someone files a lawsuit that could affect ownership or rights in a property. It does not decide the case. It alerts the world that the court will decide. The filings below account for most common situations homeowners encounter, though procedures and timelines vary by state.

Foreclosure Actions

Foreclosures are one of the most common reasons a lis pendens gets filed. When a property owner falls behind on mortgage payments, the lender’s attorney often files a foreclosure lawsuit and records a lis pendens to notify the public. The filing gives other parties notice that the lender claims a right to take the property if the debt is not cured. Judicial-foreclosure states rely on the court process, so lis pendens is standard. Nonjudicial states may use a Notice of Default instead, yet lenders sometimes record a lis pendens if any lawsuit is involved.

Timelines from the date a foreclosure is filed and an actual foreclosure differ by jurisdiction. Many homeowners see three to six months between the start of a case and an auction date, but contested matters, loss-mitigation reviews, or bankruptcy filings can extend that window. Many property owners will attempt to resolve the foreclosure before it’s completed. Resolution paths include loan reinstatement, repayment plans, forbearance, or a negotiated sale that pays off the debt and results in a recorded dismissal of the lis pendens.

If the loan is not reinstated or resolved, the case typically proceeds to a sheriff’s sale or trustee’s auction. At that point, the lender or a third-party bidder may acquire the property, and the homeowner loses ownership rights. The lis pendens remains on record until the foreclosure judgment is complete and title is transferred.

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Unpaid Contractor Fees and Mechanic’s Liens

Most people don’t think about what happens if they don’t pay their contractor’s final invoice. However, contractors, electricians, roofers, and other trades have a path to getting paid in full. They can assert payment claims for work performed, which can result in a lis pendens. The typical sequence is a preliminary notice, followed by a recorded mechanic’s lien, and, if the dispute escalates, a underlying lawsuit to foreclose that lien along with a lis pendens.

A lis pendens filed by a contractor is usually of a much smaller amount. Dollar amounts often fall in the five-figure range, commonly five to twenty-five thousand dollars, but they can be larger on more extensive projects.

If a pending lawsuit is still in play when a property gets sold, they are frequently resolved through a payoff at closing, an escrow holdback while work is verified, or a negotiated reduction backed by lien releases. Clear documentation matters. Invoices, change orders, and proof of completion help the title company and the parties settle the claim and remove the lis pendens.

Divorce and Property Division Disputes

During divorce, one spouse may file a lis pendens to protect a claimed interest in the marital home. When a lis pendens is used like this, the goal is to prevent an unauthorized sale or refinance until the court allocates the asset. Courts can also issue temporary orders that limit transfers while the case is pending. Any potential buyer during the divorce process must wait for court approval or confirmation, which often discourages offers until after the case is resolved.

Resolution requires a final decree or a signed settlement agreement that specifies who receives title and how proceeds are split. Community-property rules, separate-property claims, and reimbursement credits often come into play. If spouses cannot agree on who gets the property, the court may order the home to be sold and the proceeds divided. In those cases, the lis pendens remains until the sale is complete and the judgment is recorded. Once the court enters the judgment and the parties sign the necessary deeds, the lis pendens can be released.

Property Tax Delinquency

Counties and municipalities pursue unpaid property taxes through statutory processes that create superior liens. In many states, the taxing authority records a tax lien and may also initiate a lawsuit that results in a lis pendens, especially where judicial tax foreclosure is required. Tax liens usually take priority over mortgages and most other claims.

Curing a property tax delinquency typically involves paying the unpaid property taxes, penalties, and interest. Some jurisdictions offer installment plans or redemption periods after a sale is scheduled. Once taxes are satisfied and the case is dismissed, the lis pendens and related encumbrances can be cleared from the title.

If the delinquency remains unresolved, the property may ultimately be sold at a tax deed auction or transferred to an investor holding a tax lien certificate. At that point, the homeowner loses ownership rights, and the lis pendens is released once the foreclosure judgment or sale is finalized.

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HOA Fee Disputes

Homeowners association (HOA) dues are not optional. If HOA fees, special assessments, or fines go unpaid for an extended period, these organizations have the authority to place liens on properties. While HOA fees may just be a few thousand dollars, legal fees and interest can quickly inflate the balance, making it difficult for owners to repay. If the account remains delinquent despite repeated letters and requests to pay, the HOA may escalate by filing a lawsuit to foreclose on the lien; therefore, recording a lis pendens to alert the public. In many states, HOAs also enjoy “super-priority” status for part of their unpaid assessments, which strengthens their leverage and often forces quicker resolution.

Most HOA disputes are resolved once the owner pays the past-due balance or negotiates a payment plan. These types of lis pendens may not even block a sale; some title companies will allow a sale to move forward if money is held in escrow to satisfy the HOA claim at closing. If the delinquency is not cured, the HOA can pursue foreclosure to collect what it is owed.

Inheritance & Ownership Disputes

When a death happens in a family and there’s no clear line of inheritance with a legal will or a will gets contested, heirs often end up taking legal action through probate. By recording a lis pendens, one heir or claimant ensures that the property cannot be sold, refinanced, or transferred without the court’s involvement. Even if the property does get listed and marketed, when a title search is done the lis pendens signals that ownership is unsettled and may take months or even years to resolve.

Resolution usually requires a court judgment that confirms ownership or authorizes a sale. Sometimes heirs negotiate a settlement, agreeing to sell the property and divide the proceeds, or allowing one heir to buy out the others. Until the court order is final and recorded, the lis pendens remains attached to the title and blocks a clean transfer. If no agreement is reached, the court may order a partition sale, where the home is sold at auction and the proceeds distributed among the rightful parties. In those cases, the lis pendens remains until the sale and distribution are complete.

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Can You Actually Sell a House with Lis Pendens?

The short answer is yes, but it’s complicated. From a legal standpoint, homeowners retain ownership until a court rules otherwise, which means they technically can list and attempt to sell a property with a lis pendens. However, the presence of this filing changes the reality of the sales process. It may create uncertainty about who truly owns the home, who is owed money when the property is sold, or whether the property will remain tied up in litigation, and that uncertainty makes both buyers and lenders extremely cautious.

When a lis pendens is attached to a property, traditional mortgage financing is rarely an option in these situations. Lenders classify these properties as too risky because the lawsuit could jeopardize their lien position or investment. Most buyers will back away from properties if they can’t get financing.

Title companies also hesitate to insure a property burdened by lis pendens. Title insurance is designed to guarantee clear ownership, but a pending lawsuit makes that guarantee impossible. Without a policy, very few buyers are willing to proceed, even if they are paying cash.

In practical terms, selling a home with a lis pendens means marketing to a small group of cash buyers or investors who specialize in distressed or high-risk properties. These buyers expect steep discounts to compensate for the risk they are taking on, and even then, the sale process can be lengthy and unpredictable. If this is a road you would like to go down, make sure you work with a real estate agent with relationships with these buyers and experience selling properties with clouded titles.

FastExpert can connect you with top-rated agents who know how to navigate complex sales like these and can help you find the right path forward.

How Lis Pendens Affects Your Property Sale

A lis pendens immediately changes how the market views a property. Most buyers walk away as soon as they see a pending lawsuit attached to the title. Even when the underlying issue is relatively small, the perception of risk makes the home look like a distressed or problem property. But that’s not where the challenges end, sellers also need to consider:

• Pricing
  Properties burdened by lis pendens frequently sell at discounts ranging from 10 to 30 percent below market value. Cash buyers, who are usually the only realistic buyer, expect steep discounts to offset the risk and the uncertainty around when or how the claim will be resolved.
• Time on the Market
  Properties with a lis pendens usually sit on the market two to three times longer than other properties. The limited buyer pool means specialized marketing is often required to reach investors, and many traditional listing agents will decline these assignments altogether.
• Falling Out of Escrow
  The complexity of a lis pendens sale explains why so many deals fail to close. Even willing buyers may back out once they realize they can’t get financing and title insurance. This leads to seller frustration and underscores the reality that a lis pendens is one of the toughest obstacles in a sale.

How to Remove Lis Pendens Before Selling

Selling a property with a lis pendens is difficult, but there are ways to clear the title before listing. Each option depends on the type of dispute, the strength of the claim, and the homeowner’s resources.

Settling the Underlying Dispute

The fastest way to resolve a lis pendens is by settling directly with the party that filed the claim. This could mean paying the balance owed, arranging a payment plan, or reaching another negotiated agreement. Once the terms are finalized, the plaintiff files a release with the court and county recorder, clearing the lis pendens from the property record. Because settlement agreements must be documented, an attorney should oversee the process.

Filing a Motion to Expunge (Challenge Validity)

It’s possible that a lis pendens is filed erroneously or through fraud. If the homeowner believes the lis pendens was improperly filed, they can ask the court to expunge, or remove, it. This process requires showing that the plaintiff lacks probable cause to win the case or that the dispute does not legitimately affect ownership of the property.

A motion to expunge is a legal proceedings that requires representation by an experienced litigation attorney. Property owners and their council may need to attend court, and success depends on the strength of the homeowner’s evidence. For this reason, owners need to hire an experienced real estate attorney to walk them through the process.

Proving Lack of Merit or Standing

Another way to remove a lis pendens is by challenging the filer’s legal right to make the claim in the first place. For example, the plaintiff may not have a valid ownership interest, contract right, or lien against the property. If the court agrees that the claim lacks merit or standing, it will order the lis pendens removed from public record.

Timeline and Cost Considerations

Removing a lis pendens is rarely quick or inexpensive. Expungement motions typically take two to six months, and can drag even longer when complex disputes are involved. Legal costs often range from $5,000 to $15,000, depending on the case and how long it takes to settle. In some situations, courts allow the prevailing party to recover attorney’s fees from the filer, but that outcome is not guaranteed.

Property owners need to compare the cost of litigation with the alternatives. If the dispute involves an unpaid contractor bill of $10,000, it may be faster and less stressful to negotiate payment or a settlement rather than spending the same or more on attorneys. In foreclosure or tax cases, reinstating the loan or paying off the debt directly could resolve the lis pendens more efficiently than fighting it in court.

On the other hand, selling with a lis pendens often forces steep discounts. Buyers and investors may demand 10 to 30 percent off market value to compensate for the risk, which can mean tens of thousands of dollars lost at closing. In some situations, even after factoring in legal fees, removing the lis pendens allows a homeowner to net significantly more by selling at full market price.

Every case requires a careful cost–benefit analysis. Homeowners should weigh attorney’s fees, the likelihood of success, and the time required against the potential losses of a discounted or failed sale.

Overcoming Lis Pendens Challenges to Sell Successfully

Selling a house with a lis pendens is one of the most difficult situations an owner can face. While it is legally possible, the reality is that there is a far smaller buyer pool, big discounts, and it takes a long time to sell. Often, if financially possible, it’s easier and less expensive to resolve the dispute before listing.

Because every lis pendens case is unique, homeowners need experienced professionals on their side. A real estate attorney can help navigate the legal process, while a knowledgeable real estate agent can assess market impacts and connect with the right type of buyers. FastExpert makes it easier to find top-rated agents who have handled complex sales like these and can guide you through the process with confidence.