When Can You File a Lis Pendens in Georgia?

In certain circumstances, a party to a lawsuit in Georgia may file a “lis pendens” in public property records which means “suit pending” in Latin.  The recording of a lis pendens serves as a public notice to prospective purchasers of real estate or other interested parties that there is a pending lawsuit involving real property.  Boca Petroco, Inc. v. Petroleum Realty II, LLC, 285 Ga. 487 (2009).  A lis pendens is not a lien and does not affect title.  Instead, it serves as a warning and can be useful in litigation involving real property because it may discourage buyers or lenders from moving forward without first resolving the litigation. However, an improper filing can have significant consequences. 

How do you file a lis pendens?

A lis pendens is filed with the clerk of the superior court in the county where real property is located.  The filing generally must include a case name, case number, parties, and the court involved in the litigation, a description of the real property involved in the litigation, and a statement of the relief sought.  O.C.G.A. § 44-14-610. 

When can you file a lis pendens?

The real property must be “involved” in litigation, meaning it must be “actually and directly brought into litigation by the pleadings in a pending suit” with some relief sought regarding the real property.  O.C.G.A. § 44-14-610; Boca Petroco, Inc. v. Petroleum Realty II, LLC, 285 Ga. 487 (2009).  For example, if a lawsuit concerns ownership or rights to real property, you can file a lis pendens to give notice to third parties there is a legal claim against the real property.  Also, if there is a contract dispute that relates to real property, a lis pendens may be appropriate. 

The party filing a lis pendens does not have to assert a direct ownership in the real property; it is sufficient if the relief sought would directly affect the real property, such as setting aside a fraudulent transfer.  Meljon v. Sonsino, 325 Ga. App. 719 (2014).

When is a lis pendens not permitted?

A party cannot properly file a lis pendens where a lawsuit only involves claims for monetary damages or where there is no assertion of an interest in real property.  Hudson v. Dobson, 260 Ga. App. 473 (2003). For example, a lis pendens is improper if a lawsuit does not involve claims such as title or ownership disputes, liens, equitable interests, fraudulent conveyances, or other similar interest in the property.  Meljon, 325 Ga. App. at 720-21. 

What happens if a party improperly files a lis pendens?

Courts have authority to cancel a lis pendens that fails to meet statutory requirements.  O.C.G.A. § 44-14-610.  Even if an initial filing was proper, a court may cancel a lis pendens once the real property is no longer involved in the litigation.  If litigation results in a settlement or a dismissal, the filing party must release the lis pendens.

When a party improperly files a lis pendens, there can be financial consequences.  In particular, an improper filing can result in claims for slander of title, potential monetary damages, and exposure for an abusive litigation claim.  For example, if an improperly filed lis pendens causes a sale to fall through, courts recognize the possibility of monetary damages.  Latson v. Boaz, 278 Ga. 113 (2004).

In short, when properly filed, a lis pendens can be useful in warning of disputes concerning real property. However, you should consult with an attorney before filing to avoid unintended consequences if the filing is not proper.