Real estate transactions in Houston occasionally involve legal disputes that affect a person’s ownership or rights to sell a property. In some cases, a person or creditor may file a lis pendens, which is a formal legal notice filed in the real property records of the county where the property is located. A lis pendens indicates that a property is subject to a legal dispute and that the property’s ownership or title may be affected by the outcome of a lawsuit.
A lis pendens can significantly impact a property’s marketability, as buyers may be reluctant to purchase a property subject to a legal challenge.
When and Where Are Lis Pendens Filed?
In Houston, parties typically file a lis pendens notice with the Harris County Clerk’s Office. The purpose of the notice is to inform the public that a lawsuit has been filed that could affect the title to the property.
Under Texas Property Code § 12.007, a lis pendens may be filed in connection with a lawsuit involving:
- Title to real property
- Establishment of an ownership interest
- Enforcement of a lien against the property
The notice must meet specific procedural requirements. Generally, the filing must include:
- The style and cause number of the lawsuit
- The court where the case is pending
- The names of the parties involved
- A legal description of the property affected
Once properly filed, the lis pendens becomes part of the county’s public records. Anyone who attempts to purchase or finance the property is considered to have notice of the pending dispute. Importantly, title companies and lenders typically will not proceed with a closing while a lis pendens remains on record.
What Triggers a Lis Pendens in Texas?
A lis pendens is generally used in cases where a lawsuit directly affects the ownership of or the right to control a property.
Common situations that may trigger a lis pendens include:
- Ownership disputes between co-owners or family members
- Partition lawsuits where one owner seeks to force the sale of jointly owned property
- Contract disputes involving real estate purchase agreements
- Claims seeking to enforce a lien against the property
- Fraud or title disputes involving alleged improper transfers
- Construction or development disputes affecting property rights
Texas law limits the use of lis pendens to lawsuits that directly affect title or property interests. Otherwise, parties could needlessly and frivolously prevent the sale of a property by filing such a notice.
How to Remove a Lis Pendens
Lis pendens are not always permanent. There are several ways the notice may be removed from the property records.
Some common methods include:
- Resolution of the underlying lawsuit. In this case, the lis pendens typically becomes ineffective and may be released.
- Voluntary release by the party who filed it. The person who recorded the lis pendens can file a release once the dispute is resolved.
- Motion to expunge the lis pendens. Under Texas law, a property owner may ask the court to remove the lis pendens if the lawsuit does not actually involve a valid real property claim.
If a lis pendens has been filed against your Houston property, you have options. An experienced Houston real estate attorney can review the underlying claim and determine whether the notice is valid. At Porter Law Firm, your attorney can also help pursue removal if appropriate. Call us today for help understanding your rights and legal options.