Lis Pendens in Texas
Lis Pendens in Texas
Information, not legal advice. Laws change; check the current statute or rule and talk to a Texas attorney before you act.
"Lis pendens" is Latin for "a suit pending." In Texas it is a short document recorded in the county's real property records. It tells the world that a lawsuit is pending that could affect title to a specific property. It is not a lien and it is not a judgment. But once it is on record, anyone who buys or lends on that property is bound by the outcome of the suit as if they had been a party.
For an investor, a lis pendens does two things. It is a warning on a property you are about to buy. It is also a signal: someone is fighting over this property in court, and an owner in a title fight may want out.
When a lis pendens can be filed
Property Code §12.007(a) allows a lis pendens only in certain cases:
- an eminent domain proceeding (after the plaintiff's statement is filed);
- an action involving title to real property;
- an action to establish an interest in real property;
- an action to enforce an encumbrance against real property.
It must be filed by a party to the suit who is seeking affirmative relief. Common examples are a buyer suing for specific performance of a purchase contract, a partition suit among co-owners, a quiet-title suit, a suit to foreclose a lien, a divorce in which a spouse claims an interest in a specific property, or a dispute among heirs.
A plain money claim, such as a suit for unpaid invoices that doesn't claim an interest in the land, generally doesn't support a lis pendens. If the pleading has no real property claim, the court must expunge the notice on motion (§12.0071(c)(1)).
What it must say and where it goes
The notice must be signed by the party, its agent or its attorney and must state (§12.007(b)):
- the style and number of the case;
- the court;
- the names of the parties;
- the kind of proceeding;
- a description of the property affected.
It is filed with the county clerk of each county where any part of the property sits. The clerk records it and indexes it under the name of each party (§12.007(c)). Within three days after filing, the filer must serve a copy on every party to the suit who has an interest in the property (§12.007(d)).
The legal effect
- Notice to the world. A recorded lis pendens is notice of its contents from the moment it is filed and indexed, whether or not the parties have been served (§13.004(a)).
- Binds later buyers. Without a recorded lis pendens, a buyer or lender who pays value and doesn't know about the suit can take free of it. With one recorded and indexed under the transferring party's name, a later buyer or lender takes subject to the outcome (§13.004(b)).
In practice, title companies will usually not insure a sale or a new loan while a lis pendens stands unless it is released or expunged, or the title issue is otherwise resolved. A lis pendens can freeze a property even though it costs little to file.
Getting rid of one
There are three common paths:
- Release. The filer records a release, often as part of a settlement.
- End of the case. When the suit ends, the notice no longer has a pending suit to point to. Buyers and title companies will still want the dismissal or judgment on record, and often a recorded release.
- Motion to expunge (§12.0071). A party may ask the court to expunge the notice. The court must order it expunged if: - the pleading does not contain a real property claim; - the claimant fails to show, by a preponderance of the evidence, the probable validity of the real property claim; or - the filer did not serve the notice on each party entitled to a copy under §12.007(d).
Notice of the motion must be served at least 20 days before the hearing (§12.0071(d)). Once a certified copy of the expunction order is recorded, the lis pendens no longer gives notice of anything. It does not create any duty to inquire. The property can be sold or mortgaged free of the claims in the suit (§12.0071(f)).
Working lis pendens as an investor
- Before you buy: search the county's real property records under every owner's name for "lis pendens" or "notice of pendency." Then pull the case from the district or county clerk to see what the fight is about.
- As a lead source: suits that most often produce motivated sellers include partition among heirs or ex-spouses, quiet-title disputes, contract disputes over a failed sale, and lien foreclosure suits. A lis pendens recorded by a co-owner seeking partition often means the co-owners want the property sold. See heirs' property.
- Don't buy around it. If you buy with a lis pendens on record, you are bound by the result. A deal can still work, but only with the claimant at the table or a cleared title.
How this shows up in Agentix Data
We don't carry recorded lis pendens notices. Those sit in county clerk land records, and we don't have a feed for them yet. What we do carry is many of the lawsuits behind them. Harris County District Clerk daily filings (foreclosure suits and other civil suits), plus Fort Bend and Denton civil case indexes, are linked to parcels where we can match them. Name-only matches are marked "possible." Pull the clerk's land records to confirm whether a lis pendens was actually recorded.
Sources
- Texas Property Code §12.007 (lis pendens) and §12.0071 (motion to expunge): https://statutes.capitol.texas.gov/Docs/PR/htm/PR.12.htm and https://texas.public.law/statutes/tex._prop._code_section_12.007
- Texas Property Code §13.004 (effect of recording a lis pendens): https://statutes.capitol.texas.gov/Docs/PR/htm/PR.13.htm and https://texas.public.law/statutes/tex._prop._code_section_13.004
- Texas Property Code §12.0071 (official mirror text): https://tcss.legis.texas.gov/resources/PR/htm/PR.12.htm
General information, not legal or financial advice.