How Litigious Lis Pendens Claims Can Disrupt Commercial Real Estate Deals

A recent Florida case, Trujillo v. Garcia, 50 Fla. L. Weekly D16, has significant implications for commercial real estate professionals. This case clarifies that a lis pendens—a notice recorded against a property to signal pending litigation—should only be used when the lawsuit directly affects ownership or title. For commercial real estate agents working with Southern Title, understanding this ruling is crucial to protecting transactions from unnecessary delays caused by improper lis pendens filings.

The Impact of Lis Pendens on Commercial Transactions

Lis pendens can create major hurdles for real estate professionals. When a lis pendens is recorded, it clouds the title, making it difficult to move forward with a sale or refinance until the legal matter is resolved. However, Trujillo v. Garcia reinforces that a lis pendens is improper when a lawsuit merely seeks monetary damages and does not involve an ownership interest in the property itself. (Casetext)

Why This Case Matters to Commercial Real Estate Agents

For agents representing commercial sellers, an improperly recorded lis pendens can derail a deal. If a buyer’s due diligence reveals a pending lawsuit against the property—even if unrelated to the title—lenders may refuse financing, and buyers may walk away. The ruling in Trujillo v. Garcia offers legal precedent to challenge baseless lis pendens claims, preventing unnecessary disruptions.

How Southern Title Can Help Navigate Lis Pendens Issues

As an attorney-backed title insurance agent, Southern Title provides invaluable support in resolving lis pendens issues that threaten transactions. Here’s how we assist:

• Title Examination & Legal Review: Our team conducts thorough title searches to identify lis pendens filings and assesses their validity under Florida law.
• Collaboration with Real Estate Attorneys: When necessary, we coordinate with experienced attorneys to challenge improper lis pendens filings and seek their removal.
• Streamlined Closings: We work proactively to ensure that baseless claims don’t delay closing, keeping your transactions on track.

Protecting Your Deals with the Right Title Partner

For commercial real estate professionals, partnering with a knowledgeable title insurance agent is essential in today’s legal landscape. The Trujillo v. Garcia case underscores the importance of working with experts who can swiftly address title issues, protect deals, and ensure smooth transactions.