Title and closing

What to do about a "pending litigation" notice on a title search

Discovering a "pending litigation" notice during a title search can halt a deal, but it is not always a deal-breaker. It means there is an active lawsuit affecting the property, and you need to investigate it thoroughly.

October 14, 2026 · 3 min read

Understanding what "pending litigation" means

A "pending litigation" notice, often called a lis pendens, is a formal notice recorded in the public records to warn potential buyers that a lawsuit has been filed concerning the property. It means the property's ownership, use, or a specific claim against it is currently being disputed in court. This notice essentially clouds the title.

It does not automatically mean the seller does not own the property or that the deal cannot proceed. Instead, it indicates that the final outcome of the litigation could affect the property's title. Anyone who buys the property takes it subject to the outcome of that lawsuit.

Getting the details of the lawsuit

Your first step is to get all available details about the lawsuit. Your title company is crucial here; they should be able to provide you with the court case number and the names of the parties involved. With this information, you or your attorney can access the court records to review the complaint, motions, and any judgments.

Understand the nature of the dispute: Is it a boundary dispute? A claim against the seller's ownership? A foreclosure action? The specifics will determine the severity and potential impact on your investment.

Assessing the impact on the property and deal

Once you understand the lawsuit, you need to assess its potential impact. If the litigation is minor, such as a neighbor dispute over a fence line that does not affect marketable title, it might be manageable. If it is a dispute over ownership or a large financial claim, the risks increase significantly.

Consider the timeline of the lawsuit. If it is expected to drag on for years, it will tie up your capital and delay your ability to resell or rent the property. This assessment helps you decide if the risk aligns with your investment strategy.

Strategies for moving forward or walking away

Based on your assessment, you have a few options. If the litigation is minor and resolvable, you might proceed, perhaps with an adjusted offer or an escrow holdback to cover potential costs. Your title company might be able to offer title insurance with a specific endorsement to cover the risk once the litigation is resolved.

Alternatively, you might need to make the purchase contingent on the litigation being resolved and the lis pendens being removed before closing. If the risks are too high or the resolution timeline is too uncertain, walking away might be the smartest decision. You are in control of your commitment.

Working with your title company and attorney

Your title company and a real estate attorney are your best allies in navigating pending litigation. The title company identifies the issue, and your attorney can interpret the legal documents and advise you on the best course of action. They can also help negotiate with the seller or his or her attorney to resolve the matter.

Ensure your purchase agreement includes clauses that address title defects and your right to terminate if such issues cannot be cleared. This helps protect your earnest money and your time. I am not a legal professional, and this is not legal advice. Always consult with a qualified attorney for specific legal guidance.

Questions people ask

Can I still buy a property with pending litigation?

It is possible, but highly risky. You would take the property subject to the lawsuit's outcome. Most investors would require the litigation to be resolved and the lis pendens removed before closing, or at least have strong legal counsel and title insurance covering the specific issue.

Who is usually involved in these lawsuits?

It varies, but common parties include previous owners, neighbors, lenders, contractors, or other individuals claiming an interest in the property. The seller is typically a defendant in the case.

Will title insurance cover this?

Standard title insurance policies typically exclude known title defects like pending litigation. You might be able to get a special endorsement after the litigation is resolved, but it is unlikely to cover the issue while it is still active. Consult with your title company for specifics, as this is not legal advice.