– A lis pendens is a notice of a pending lawsuit against real estate in Florida.
– It provides notice to third parties that there is a lawsuit concerning the property.
– A lis pendens also protects the plaintiff from any intervening liens on the property filed after the lis pendens.
– Property owners may not be able to sell, obtain financing, or obtain title insurance until the lis pendens is removed.
– To be valid, a notice of lis pendens must be recorded in the official records in the county where the property is located and must include specific information about the lawsuit. 1. A lis pendens filed on a property in Florida can prevent the owner from selling or dealing with it, creating a cloud on the title.
2. Prospective buyers, mortgage lenders, and title insurance companies may be deterred from getting involved with the property if a lis pendens is filed.
3. A lis pendens can be properly filed in Florida when the lawsuit is founded on a duly recorded instrument or when there is a fair connection between the ownership of the property and the dispute in the lawsuit. 1. A lis pendens can be challenged if it is not based on a duly recorded instrument.
2. If the lawsuit is based on fraud or a non-recorded document, the court may have the power to discharge the lis pendens.
3. However, if the plaintiff can establish a fair nexus between their claim and the property, and can show a good faith, viable claim that would affect the property title, the lis pendens should not be discharged. – A lis pendens bond may be required by the court in a pending lawsuit to protect the property owner from damages caused by the lis pendens, if it is later found to be unjustified.
– The purpose of the bond is to protect the property owner, similar to how the lis pendens protects the plaintiff and third parties.
– The property owner can recover damages for an improperly filed lis pendens, including the difference in fair market value at the time of filing versus termination, consequential damages, and attorney’s fees. – The trial court has discretion in requiring a bond for a lis pendens.
– Property owners can provide proof of prospective loss or damage in a hearing.
– Attorney’s fees may be included in the bond amount.
– If a lis pendens is determined to be improper, the bond will be used to pay the property owner’s damages.
– Before filing a lis pendens, plaintiffs should seek legal advice.
– An attorney can help remove a lis pendens and recover damages for a property owner.
https://www.jimersonfirm.com/blog/2021/01/lis-pendens-florida/
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