It is a fairly routine scenario in the world of real estate litigation – at the outset of the lawsuit, the plaintiff files a notice of pendency of action (also known as a lis pendens), but then the case eventually settles and the settlement requires that the lis pendens be withdrawn.
A growing trend appears to be the notice of withdrawal of lis pendens is signed by the plaintiff’s attorney. However, this does not comply with requirements of Code of Civil Procedure (“C.C.P.”) section 405.50, which requires the notice of withdrawal of the lis pendens to be executed by the party (not the attorney of the party) who recorded the lis pendens, and acknowledged by a notary.
Accordingly, whenever parties settle a real estate lawsuit involving a lis pendens a good real estate attorney should make sure any notice of withdrawal of the lis pendens complies with C.C.P. section 405.50. Remember, the plaintiff’s attorney’s signature is not enough! Accepting a notice of withdrawal of lis pendens signed by the plaintiff’s attorney may result in the notice of withdrawal being rejected by the recorder’s office or issues with the title insurance down the line taking issue with the lis pendens and can remain a cloud on title.
By Los Angeles Real Estate Attorney Rachael Shinoskie.
For more information on your real estate matter and removing a lis pendens contact us by filling in the contact us form on this page, by telephone at 310-954-1877, by email at email@example.com or by visiting www.schorr-law.com.