Description of the legal term Lis Pendens:
Lis pendens is a Latin term that translates to “pending litigation” and is a concept employed in the jurisprudence of many countries, including the United Kingdom. In the context of English law, it refers to the principle that a legal action regarding a particular property is pending and that any person who acquires an interest in that property subsequent to the commencement of that litigation does so subject to any judgment or decision that may be made in the pending suit.
This legal doctrine is particularly relevant to the conveyancing process and is meant to protect the legal process from external interference, as well as to alert potential purchasers about the existence of any disputes over the property they intend to buy. It ensures that a buyer cannot claim ignorance of a legal dispute once a notice of the pending litigation has been duly registered. Parties to a dispute are thus prevented from transferring the property in question to a third party to deflect the course of justice.
The practical impact of lis pendens is such that once it is registered, it effectively places a burden on the property and can act as a deterrent to potential buyers or lenders who may not wish to become involved in the litigation process or may not want to take the risk of the final judgment affecting their rights. However, it is not an automatic process and must be actively registered against the property’s title. There are specific requirements that need to be fulfilled for the registration to be effective – for example, the dispute must relate directly to the property and not merely involve the property owners in some other context.
In English law, the provisions governing lis pendens were traditionally found under the Land Charges Act 1972 for unregistered land and the Land Registration Act 2002 for registered land. However, the process and requirements surrounding the registration have been subject to criticism, primarily due to concerns about potential abuse. For instance, registering a notice of a pending dispute could be used as a tactic to unfairly burden a property owner during negotiations or settle personal vendettas.
The contemporary approach to lis pendens in English law places emphasis on ensuring that there is a balance between protecting the integrity of the conveyancing process and preventing potential abuse. Courts, therefore, have the discretion to control and, if necessary, dismiss registrations that are deemed inappropriate or unjust.
Legal context in which the term Lis Pendens may be used:
Imagine that a property owner is trying to sell their country estate. During the conveyance process, it turns out that there is a pending dispute with a neighbour over the precise boundary lines of the estate. After the initiation of the litigation, the owner still attempts to sell the property. Here, the principle of lis pendens becomes relevant. If properly registered, any new purchaser would take the property subject to the outcome of the boundary dispute. Should the court later determine that a portion of the land does not belong to the estate, the new owner would lose that portion of their recently acquired property.
Another context where this term is applicable is in the case of a divorce where one party is attempting to sell a property that is potentially subject to matrimonial asset division. If one spouse initiates a sale without the knowledge or consent of the other, and proceedings regarding asset distribution between the spouses are pending, a notice of lis pendens could be registered against the property. This would signal to any prospective buyer that the outcome of the divorce proceedings could impact the ownership and entitlement to the property they are considering purchasing.
Understanding the concept of lis pendens is thus crucial within the British legal framework, as it provides a safeguard that ensures a stable and predictable transfer of property rights, reflecting the principle that justice should not be obstructed by interim transactions. It also alerts potential interested parties to pending disputes, thereby promoting transparency and fairness in the property market.
