A property dispute can affect a sale or refinancing long before a court decides who is right. A lis pendens, also called a notice of pendency of action, alerts buyers and lenders that a lawsuit may affect the property’s title or possession. For California businesses and individuals, that notice can create serious practical consequences. This guide explains when a lis pendens is permitted, what recording requires, and how a property owner can challenge an improper notice.
Lis pendens California: notice, not a property freeze
A lis pendens is a recorded notice connected to a pending lawsuit involving a real property claim. Under California Code of Civil Procedure § 405.20, a party asserting such a claim may record the notice in the county where the property is located.
The notice does not establish ownership, prove the allegations, or automatically prohibit a sale. It is not an injunction or a judgment lien. Its central effect is notice: under Code of Civil Procedure § 405.24, someone who later acquires an interest in the property generally takes that interest subject to the outcome of the identified real property claim.
That exposure often makes buyers and lenders reluctant to proceed. A title company may also raise the notice as an exception to coverage. The practical result can resemble a freeze, but the distinction matters: recording a lis pendens does not itself create a court order stopping a transfer.
Which lawsuits support a lis pendens?
Not every dispute involving real estate qualifies. Code of Civil Procedure § 405.4 defines a real property claim as a cause of action that, if successful, would affect title to, or the right to possession of, specific real property. The definition also covers certain claims involving use of an identified easement.
Depending on the allegations and requested relief, qualifying claims may include:
- A quiet title action to resolve competing ownership claims.
- A claim for specific performance seeking to compel a property sale under an enforceable purchase agreement.
- A partition action concerning jointly owned property.
- A dispute directly affecting an easement or the right to possess identified property.
A lawsuit seeking only money damages ordinarily does not support a lis pendens merely because the defendant owns real estate. For example, an unpaid invoice claim does not become a real property claim because the creditor wants to prevent the debtor from selling a building.
Courts examine the actual claim, not just the labels in the complaint. Before recording, a claimant should evaluate whether the requested judgment would truly affect title or possession. Advice about California civil litigation can help distinguish a qualifying property claim from a financial dispute requiring other remedies.
Recording requires more than submitting a form
A lis pendens must identify the action and describe the affected real property. It also requires a qualifying signature. Under Code of Civil Procedure § 405.21, an attorney of record may sign the notice. A party acting without an attorney generally must obtain a judge’s approval before recording it.
Service requirements are equally important. Code of Civil Procedure § 405.22 generally requires the claimant, before recording, to mail a copy of the notice by registered or certified mail, return receipt requested, to all known addresses of parties against whom the real property claim is adverse and to all record owners shown by the latest county assessment roll. If no known address exists for a person required to receive notice, a declaration under penalty of perjury stating that fact may be recorded instead of proof of service for that person. Immediately after recording, a copy of the notice must be filed with the court. Under § 405.23, the notice is void and invalid as to an affected party or record owner unless the § 405.22 requirements are met and the required proof of service is recorded with the notice.
A practical pre-recording review should confirm:
- The lawsuit is pending and actually asserts a qualifying real property claim.
- The property description and party information are accurate.
- The notice has the required signature or court approval.
- The required recipients, mailing steps, recording, and court filing have been addressed.
These are statutory requirements, not optional administrative details. Defects can undermine the notice and create avoidable disputes.
How an owner can seek expungement
A party, or a nonparty with an interest in the affected property who obtains leave to intervene at or before bringing the motion, may ask the court to expunge, or remove, the notice under Code of Civil Procedure § 405.30. The court considers whether the pleading contains a real property claim, whether the claimant has established its probable validity, and whether adequate relief can instead be secured by an undertaking.
Under Code of Civil Procedure § 405.31, the court must order expungement if the pleading does not contain a real property claim. Under § 405.32, the court must also order expungement if the claimant fails to establish the claim’s probable validity by a preponderance of the evidence. The claimant carries that burden. Under § 405.33, even if the claim has probable validity, the court must order expungement if adequate relief can be secured by an undertaking. That expungement is conditioned on giving an undertaking in an amount set by the court.
A qualifying allegation therefore is not enough by itself. The claimant may need contracts, declarations, ownership records, or other evidence supporting the claim. Conversely, an owner challenging the notice should address both the legal basis and the evidence rather than relying solely on the disruption to a pending transaction.
Attorney’s fees are another consideration. Code of Civil Procedure § 405.38 generally requires an award of reasonable attorney’s fees and costs to the party prevailing on any motion under the lis pendens chapter, unless the court finds that the other party acted with substantial justification or that other circumstances make an award unjust.
Practical steps when a transaction is affected
If a lis pendens appears on a title report, obtain the recorded notice, the complaint, and relevant court filings promptly. Compare the named parties and property description with the ownership records. Tell transaction counsel about financing deadlines, escrow requirements, and any scheduled closing.
If you are considering recording a notice, preserve the documents supporting your claimed property rights. Do not use a lis pendens simply to pressure someone to pay an unrelated debt. Whether you are asserting or challenging the notice, coordinate any withdrawal or expungement with the court process and county recording requirements.
Talk to a California business attorney
A free consultation can help you identify the issues to review before recording or challenging a lis pendens affecting your property. Schedule a free consultation or call (424) 603-8888.
This article is attorney advertising and provides general information only. It is not legal advice and does not create an attorney–client relationship. The law changes, and this article reflects the law as of its publication date. Every situation is different — contact us to discuss how the law applies to your exact circumstances. See our full disclaimer.
