Lis Pendens In Ohio Real Estate Disputes: What Property Owners Should Know

Legal conflicts involving real estate can cause a number of concerns, especially when it comes to lawsuits that affect your ability to sell or refinance your property. Certain legal measures are commonly used in these cases, with “lis pendens” being among the most common terms. Most people will probably never hear about it until it actually happens.

Getting familiar with the meaning of lis pendens can benefit anyone who is involved in such a conflict.

What is a “lis pendens” 

Lis pendens is a Latin term meaning “a pending lawsuit”. It works as a warning in Ohio property disputes. This legal instrument makes it clear to anyone who has not been previously informed that an action is in progress regarding the property in question. Therefore, any third party will understand that the property might require a court decision before any other process moves forward.

The role of lis pendens in property disputes in Ohio is very important. The idea behind introducing this tool into law is to prevent anyone from transferring or imposing liability on this property while an action is being settled in court.

How does lis pendens affect property owners? 

The filing of a lis pendens does not necessarily make a sale impossible, but it certainly makes it more difficult. It is highly unlikely that buyers and lenders will be willing to complete a transaction with a pending lawsuit, since the proceedings could affect their right to own the land.

In practical terms, a lis pendens can stop a land deal until the matter is resolved.

Such pressure will be put on the parties involved in:

• Disputes regarding boundaries
• Disputes regarding the sale contract
• Partition of property among co-owners
• Construction issues
• Foreclosure cases
• Fraudulent conveyances

Since the lis pendens becomes part of the public record, it may have an effect on the land’s value and marketability.

When can a lis pendens be filed? 

Lis pendens is usually used in Ohio cases involving title or ownership of real property. Just demanding money for compensation does not qualify.

For instance, if the litigation concerns establishing ownership of a piece of real property, the performance of a sale contract, or the transfer of ownership, then lis pendens would apply. However, commercial disputes unrelated to ownership rights may not warrant a lis pendens.

Misuse of lis pendens might create more legal problems than it solves. The plaintiff would be in trouble if they filed for lis pendens without sufficient legal grounds.

Can a lis pendens be removed? 

In certain cases, removing a lis pendens is possible. In the absence of an actual dispute over title, owners can seek cancellation of the lis pendens filed by the other party.

Given that lis pendens can cause financial problems, it is crucial for property owners to take action early.

Talk to a Dayton, OH, Real Estate Lawyer Today 

The Dayton real estate lawyers at Kohl & Cook Law Firm, LLC, represent the interests of those involved in a real estate dispute. Call our Dayton real estate lawyers today to schedule an appointment, and we can begin discussing your next steps right away.