What is a lis pendens?

A lis pendens is a formal notice recorded in the county where real property is located to inform the public that a lawsuit has been filed involving that property's title or ownership. In foreclosure cases, the lender's attorney files a lis pendens in Richland County or the applicable county as part of initiating the foreclosure action. The notice warns potential buyers, lenders, and title companies that the property's ownership is subject to an ongoing legal dispute.

Once recorded, a lis pendens creates what is called a "cloud on title." This means the property cannot be sold or refinanced without resolving the underlying lawsuit first. Any new buyer would take ownership subject to the foreclosure judgment, and most lenders will refuse to issue a mortgage on a property with a lis pendens on record. The notice remains in effect until the foreclosure case is concluded, dismissed, or the lender removes it from the record.

The purpose of recording a lis pendens is to protect the lender's interest by preventing the property owner from attempting to sell or transfer the property to avoid the foreclosure action. It gives actual notice to anyone conducting a title search that the property is encumbered by pending litigation. In South Carolina foreclosure proceedings, the lis pendens is a standard document filed early in the legal process. If you are facing foreclosure or purchasing property with a lis pendens, consulting a real estate attorney is important to understand the implications.