What Is a Lis Pendens in California and How It Affects a Property Sale

Property disputes in California often take time to resolve, but real estate transactions move much faster. A seller can open escrow and move toward closing while a lawsuit over ownership, title, or rights to the property is still pending. A lis pendens in California exists to address that gap.

Once recorded, it alerts anyone involved in the property that a lawsuit may affect title or possession. As a result, it can stop or seriously complicate a sale, refinance, or transfer until the case ends or the notice is removed.

A lis pendens plays a direct role in real estate litigation in California because it affects whether a property can change hands while a dispute is still active.

What Is a Lis Pendens in California?

A lis pendens, formally called a “notice of pendency of action,” is governed by California Code of Civil Procedure sections 405.20 through 405.61. It is a recorded notice that a lawsuit is pending and that the outcome may affect title or possession of a specific piece of real property.

Once recorded with the county recorder where the property is located, it becomes part of the public record.

The practical effect is direct. Anyone who later acquires an interest in the property, such as a buyer or lender, takes that interest with notice of the pending lawsuit. Courts treat them as having constructive notice, even if they never saw the complaint.

After recording, later buyers, lenders, and escrow companies usually treat the property as risky until the dispute is resolved.

When a Lis Pendens Can Be Filed in California

California Code of Civil Procedure section 405.20 allows a lis pendens only when the lawsuit includes a “real property claim.”

A real property claim means the lawsuit, if successful, would directly affect title to or possession of specific real property.

Not every real estate related dispute qualifies. The claim must connect directly to ownership or control of the property, not just involve money or a general contract dispute.

Common situations where a lis pendens may apply

Ownership disputes are the clearest example. If two parties both claim title to the same property, the court must decide who owns it.

Partition actions also qualify because they directly involve co-ownership rights and the potential forced sale or division of property.

Fraud claims may support a lis pendens when the lawsuit seeks to unwind a recorded transfer or correct title based on alleged forgery or misrepresentation.

Specific performance cases involving a real estate purchase agreement can also qualify because the buyer is asking the court to enforce transfer of the property.

Boundary disputes, easement claims, and quiet title actions often fall within this category as well.

How a Lis Pendens Affects a Property Sale

Once recorded, a lis pendens immediately changes how a property is treated in the market.

Buyers and escrow

Most buyers will not proceed with a purchase once a lis pendens appears on title. The reason is simple. A buyer could complete the purchase and later lose rights to the property if the court rules in favor of the plaintiff in the lawsuit.

Title insurance companies typically refuse to insure properties with an active lis pendens. Without title insurance, most lenders will not fund the loan. As a result, escrow often stalls until the dispute is resolved or the notice is removed.

Even if a buyer is willing to proceed, the transaction usually requires resolution of the lis pendens before closing can occur.

Refinancing and lending

Lenders also discover lis pendens notices during title review. In most cases, they will not approve refinancing or new financing until the issue is cleared.

This can limit a property owner’s ability to access equity or restructure debt, even if the lawsuit has not yet been decided.

Market impact

Even when a lis pendens is later removed, it can affect negotiations. Buyers often treat the property as higher risk, which can reduce interest or affect pricing discussions.

Legal Requirements for Filing a Lis Pendens

Filing a lis pendens is not automatic. It must follow specific procedural rules under California law.

The notice must be based on an existing lawsuit. It cannot be filed before litigation begins.

California Code of Civil Procedure section 405.21 also requires proper service of the notice on all parties involved in the action.

The document must include:

the names of the parties
the court and case number
a description of the property
sufficient information to identify the real property

It must also be recorded in the county where the property is located.

Importantly, the filing must rely on a valid real property claim. If it does not, the court may remove it and impose penalties.

Motion to Expunge a Lis Pendens in California

A lis pendens can be challenged through a motion to expunge. This is one of the most important protections for property owners affected by a recorded notice.

When courts remove a lis pendens

Under California Code of Civil Procedure sections 405.31 and 405.32, a court may order expungement if:

the lawsuit does not contain a valid real property claim, or
the claimant cannot show probable validity of the claim

The burden shifts to the party who filed the lis pendens. They must show their claim has enough legal and factual support to justify keeping the notice in place.

Attorney’s fees risk

California Code of Civil Procedure section 405.38 allows the court to award attorney’s fees to the party who successfully moves to expunge a lis pendens.

This creates financial risk for parties who file a lis pendens without a strong legal basis.

Undertaking as an alternative

In some cases, the court may allow the lis pendens to remain if the filing party posts a bond (undertaking). This is meant to protect the property owner if the claim later fails, but it is not always granted.

Example Scenarios

Real estate fraud and disputed title

A homeowner discovers that a deed was forged and recorded, transferring ownership to another party. The homeowner files a quiet title action and records a lis pendens. This prevents the property from being sold while the court decides whether the transfer was valid.

Co-ownership dispute and partition

Two co-owners inherit property and disagree about whether to sell it. One files a partition action seeking a court-ordered sale and records a lis pendens. This prevents unilateral sale or refinancing while the case is pending.

Contract dispute over a sale

A buyer sues for specific performance after a seller refuses to close on a signed purchase agreement. The buyer records a lis pendens to preserve their claim to the property while the court decides whether the contract is enforceable.

Common Mistakes With Lis Pendens

Filing without a real property claim

A lis pendens must relate directly to title or possession. Disputes involving money damages alone usually do not qualify. If the claim does not meet the legal standard, the court can remove it.

California Code of Civil Procedure section 405.4 defines what qualifies as a real property claim.

Using lis pendens as pressure

Some parties try to use lis pendens to force settlement. Courts treat this carefully, and improper filings often lead to expungement and fee awards.

Ignoring procedural rules

Mistakes in service, recording, or required information can invalidate the notice even if the underlying claim is valid.

Why Lis Pendens Matters in Real Estate Litigation

A lis pendens can preserve a party’s position during litigation. It prevents property transfers that could make a future judgment meaningless.

At the same time, California law balances this power with safeguards. The expungement process and fee shifting rules discourage weak or strategic filings that lack a real property basis.

The result is a tool that can be highly effective when used correctly, but risky when used without a strong legal foundation.

General information about California courts and civil litigation procedures can be found here: California Courts

Speak With a California Real Estate Litigation Lawyer

Lis pendens issues often involve strict procedural rules and significant financial risk. Early legal review can help determine whether a filing is valid or whether it can be challenged through expungement.

Kassouni Law handles real estate litigation across California, including property rights disputes, title conflicts, partition actions, quiet title cases, and other matters affecting ownership and control of real property.

If you are dealing with a real estate dispute involving a lis pendens in California, contact Kassouni Law to review your situation and discuss your legal options under California law.

Frequently Asked Questions

1. What is a lis pendens in California real estate?

A lis pendens is a recorded legal notice showing that a lawsuit has been filed involving a specific piece of real property. In California real estate cases, it signals that the outcome of the lawsuit may affect title or ownership of the property.

2. What does lis pendens mean in simple terms?

Lis pendens means “suit pending.” In practical terms, it means a property is tied to an active court case, and anyone reviewing title will see that there is a legal dispute involving the property.

3. What happens after a lis pendens is filed?

Once a lis pendens is recorded, it becomes part of the property’s public record. Title companies, buyers, and lenders usually treat the property as legally risky, which often delays or prevents sales and refinancing until the dispute is resolved or the notice is removed.

4. Can you sell a property with a lis pendens on it?

Technically, a property can still be listed or under contract, but in most cases, it is very difficult to complete a sale. Buyers and lenders typically will not proceed because the outcome of the lawsuit could change ownership rights after closing.

5. What is a notice of lis pendens used for in California?

A notice of lis pendens is used to protect a party’s claimed interest in real property during a lawsuit. It prevents the property from being transferred without the buyer taking notice of the ongoing litigation, which helps preserve the legal rights being argued in court.