You’ve finally decided to sell your old house in Nashua, NH, but when you looked up the title, you learned some bad news: there’s something called a lis pendens on the property. Your first question at that point is probably “Can you sell a property with a lis pendens?”
You can, but it might not be smooth sailing. We buy houses in southern New Hampshire and have encountered many with this particular issue. Here’s what you need to know.
What Is a Lis Pendens, Anyway?
A lis pendens notice (the Latin term for “suit pending”) means there’s a legal dispute involving your property. It could be anything from a divorce, probate issue, or a contractor suing for unpaid work. This notice alerts the world to the existence of pending litigation associated with the property, creating a “cloud on title.”
A clouded title makes buyers (and their lenders) nervous, since it means someone else might have a legal claim on the property. Until you resolve the dispute, that cloud hangs over your sale.
How Does a Lis Pendens Affect Property Sales?
Technically, the answer to “Can you sell a property with a lis pendens?” is yes, and there isn’t a law that says you can’t sell.
But here’s the catch: most buyers don’t want to touch a home involved in a real estate dispute, especially when there’s a chance the outcome of the case could affect ownership. It’s also challenging to obtain title insurance with a lis pendens, which means banks typically won’t lend money for the purchase.
So, while you can sell a property with a lis pendens, it limits your buyer pool and can slow down the process.
Homeowner Options When There Is a Lis Pendens on Their Property
If you’re in this situation, you’ll have a few options.
- Settle the dispute. Resolve the issue that caused the lis pendens and get it removed.
- Wait it out. Once the litigation ends, the cloud clears.
- Sell to a cash buyer. This is where things can get easier.
Cash buyers don’t rely on banks or need title insurance, unlike traditional buyers. That means they may be able to work with you and buy the house before the dispute is over. They understand property sale restrictions and can often help homeowners in tough legal or financial spots find a workable solution, even if the issue is as extreme as a house on the verge of condemnation.
Get In Touch With IPS Cash To Explore Your Options for Selling Disputed Property
So, can you sell a property with a lis pendens? Yes, but be prepared for some bumps along the way. Traditional sales can be tricky, but alternatives like selling the house as-is to IPS Cash can make things easier.
If you’re overwhelmed by a legal claim on your property, call me, Joe Theriault, and my team at 1-888-893-7188, and let’s chat. We’ll walk you through your options and see if we can make a fair, no-hassle offer that gets you moving forward, lis pendens and all.
