LIS

Lis Pendens

A lis pendens is a notice of pending litigation. It constitutes constructive notice of any claims in the suit as to the land. In the absence of a lis pendens, a third person who has actual notice of a suit generally has the duty to inquire as to whether the suit may reflect a claim on the land. Therefore, the absence of a lis pendens or discharge of lis pendens by interlocutory court order does not relieve you from reviewing the suit. Some states establish a procedure (by bond, money, or guaranty) to expunge the lis pendens. You must secure approval from the Company in order to rely on this procedure.
References
See Underwriting Manual,

10.08   Judgments

10.12   Judicial Proceedings

11.24   Lis Pendens

15.68   Publication, Service By

16.00   Quiet Title Suits

Requirement

LISR01 STGC

Release or Withdrawal of a Lis Pendens and Suit

The Company requires a satisfactory dismissal with prejudice of that suit styled ________ under Case or Docket No. __________ and release of that Lis Pendens recorded ___________________.
Comment: If a lis pendens is filed, you must require a final agreed (or nonappealable) dismissal with prejudice and a release of lis pendens. A release of lis pendens alone is not sufficient.
References
See Underwriting Manual,

11.24   Lis Pendens

LISR02 STGC

Require Suit Dismissal

That suit styled ___________ under Case or Docket No. _______ claiming or seeking _______________ and other matters, claims, or rights that may be reflected by, or judgments or orders rendered pursuant to, the suit. The Company requires a satisfactory dismissal with prejudice of the suit.
Comment: Even if no lis pendens is filed, you must require satisfactory disposal of a suit relating to title to the land if you actually know about that suit.
References
See Underwriting Manual,

11.24   Lis Pendens

LISR03 STGC

Suit Not Examined

That suit styled ___________ under Case or Docket No. _______ claiming or seeking _______________ and other matters, claims, or rights that may be reflected by, or judgments or orders rendered pursuant to, the suit. No examination of this suit has been made. Upon completion of the examination, the Company will inform you of its requirements and exceptions.
Comment: You must use this requirement if you actually know about a suit that may affect title, even though no lis pendens is filed.
References
See Underwriting Manual,

11.24   Lis Pendens

LISR04 STGC

Persons Not Made Parties

Rights of the following persons who were not made party defendants in that suit styled _____________ under Case or Docket No. ________________ : ____________________. The Company requires for its review and recordation a satisfactory deed from said persons or their successors in interest, and their spouses, if any. At that time, the Company may make additional requirements or exceptions.
Comment: If a person claiming an interest in the land is not properly joined in a suit (such as a foreclosure or quiet title action) and does not enter an appearance, you must require a deed from that person. If a cotenant has not properly joined in a partition suit, you must require deeds from all cotenants and lienholders.
References
See Underwriting Manual,

11.24   Lis Pendens

LISR05 STGC

Persons Served by Publication

Rights of the following persons who were served by publication as party defendants in that suit styled _____________ under Case or Docket No. __________________ : __________________. The Company requires for its review and recordation a satisfactory deed from said persons or their successors in interest, and their spouses, if any. At that time, the Company may make additional requirements or exceptions.
Comment: If a person claiming an interest in the land is served by publication and does not enter an appearance, you must require a deed from that person unless subsequent extended actual use and state title examination customs justify reliance on citation by publication.

(1) Action must be discontinued and Notice of Pendency canceled by order of Court; and

(2) A deed is required from __(name[s])__, conveying the interest claimed.

{has expired. If a foreclosure action, a new Notice must be filed more than 20 days prior to the rendering of final judgment of foreclosure and sale.}

{must be filed more than 20 days prior to the rendering of final judgment of foreclosure and sale.}

{has not been filed as provided in RPAPL Section 1331. Judgment of Foreclosure and Sale is not effective.}

{is not effective because the defendant was not served within 30 days of the filing of the Notice, as required pursuant to CPLR Section 6512. Judgment of Foreclosure and Sale is not effective in the absence of a curative order, and policy will except any matters arising after the filing of the original, defective notice.
References
See Underwriting Manual,

11.24   Lis Pendens

15.68   Publication, Service By

Exception

LISX01 ALTA

Lis Pendens and Suit

Notice of Lis Pendens recorded ____________ reflecting that suit entitled ________________, under Case or Docket No. ____________, and any claims or rights that may be reflected by, or judgments or orders rendered pursuant to, the Notice or suit.
Comment: If a lis pendens is filed, you must except to the effect of the suit and claims in the suit. If the suit is dismissed without prejudice, you must continue to except to claims reflected by the suit.

LISX02 ALTA

Suit – No Lis Pendens

That suit titled ___________ under Case or Docket No. _______ claiming or seeking _______________ and other matters and any claims or rights that may be reflected by, or judgments, decrees, or orders rendered pursuant to the suit.
Comment: If no lis pendens is filed, you must except to any suit that may affect title to the land. If the suit is dismissed without prejudice, you must continue to except to claims reflected by the suit.

LISX03 STGC

Right to Appeal

The right to a new trial or appeal from the judgment, decree, or order entered in the suit styled _______________, under Case or Docket No. ____________, within ______________________.
Comment: If a favorable judgment has been entered but remains appealable, you must except to lack of finality of that suit.

Note: You may add additional local exceptions here. Please consult with our underwriting personnel in preparing appropriate provisions.
References
See Underwriting Manual,

1.68   Appeal Periods and Exceptions to Pending Litigation

11.24   Lis Pendens

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