Resnick Law PC | Co-Ownership Solutions

Resnick Law PC

Co-Ownership Real Estate Solutions for Arizona & California

In Arizona, a lis pendens—Latin for “pending lawsuit”—serves as a formal notice indicating that a legal action involving real property is underway. This notice alerts potential buyers or lenders that the property’s title may be affected by ongoing litigation.

Key Considerations for Filing a Lis Pendens in Arizona

  1. Applicable Legal Actions
    • A lis pendens is appropriate only for lawsuits that directly impact the title or right of possession of real property.
    • For example, actions seeking specific performance of a real estate contract or disputes over property ownership qualify.
    • Cases solely seeking monetary damages without implications on property title do not warrant a lis pendens.
  2. Statutory Requirements
    • Arizona Revised Statutes § 12-1191 governs the filing of a lis pendens.
    • The notice must include:
      • Names of the involved parties.
      • The object of the legal action or defense.
      • The relief being sought.
      • A description of the property in question.
    • This notice should be filed with the County Recorder’s Office in the county where the property is situated.
  3. Potential Liabilities for Improper Filing
    • Filing a lis pendens without proper grounds can lead to significant legal repercussions.
    • Under Arizona law, specifically A.R.S. § 33-420, individuals who record a lis pendens knowing it is forged, groundless, contains material misstatements, or is otherwise invalid may be liable for:
      • Statutory damages of $5,000 or triple the actual damages, whichever is greater.
      • Reasonable attorney fees and associated costs.
  4. Implications of a Lis Pendens
    • Recording a lis pendens places a cloud on the property’s title, potentially deterring prospective buyers or financiers due to the pending litigation.
    • This can impede the owner’s ability to sell or refinance the property until the dispute is resolved and the lis pendens is lifted.

Checklist for Filing a Lis Pendens in Arizona

  • Confirm Applicability: Ensure the lawsuit directly affects the property’s title or possession rights.
  • Prepare the Notice: Include all required information: parties’ names, action’s objective, sought relief, and property description.
  • File with the Appropriate Office: Submit the notice to the County Recorder’s Office in the property’s county.
  • Serve Notice: Provide all involved parties with a copy of the filed lis pendens.
  • Consult Legal Counsel: Seek advice from a qualified Arizona real estate attorney to ensure compliance with all legal requirements and to avoid potential liabilities.