Uh oh! The house we just closed on last month had a lid pendens filed after we had the clear to close from the attorney.

There's also a chance that they did not meet some clause of the offer they claim and therefore actually are in default.

Or they could be just trying to rip you off. The timing seems unusual and fishy.

Hmm this reminds me of an HVAC customer who gypped us out of half the bill to put a huge boiler in his multiplex/apartment complex. He simply "didn't feel like paying the whole bill"

This guy runs a flop house out of this building and has been raking it in for decades.

I filed a mechanics lien and extension every year religiously.

Now a paralegal calls me and tells me I "have to sign a preemptive satisfaction of judgment" before they close with not a dime sent my way. I said "no way!" I'll file a pending satisfaction on the condition I see my money plus 9% per annum interest and funds clear. Also the cheapskate seller could cut me a check ("give me what I want and I will go away--Storm of the Century" reference)

Please Read to understand:

Many States use an Attorney to close a real estate deal. That's all well and fine, but the buyer is "Still" taking an unnecessary chances.

This is why many purchase "Title" Insurance during the escrow/loan period. But still this may also carry no guarantee for a "Buyer". Why? Because Banks giving loans ONLY REQUIRE a TITLE Policy to cover the Banks interest, the loan balance.

Instead a buyer should purchase a "Lenders" AND "Buyers" Title Policy. The extra cost is nothing, maybe $200 extra.

I had to look that up. I thought you had a STD and needed medical advice on which antibiotic to take. (Just kidding - LOL)

@NE, you need to get the dates (maybe the times) involved. When exactly was the Lis Pendens recorded? When exactly was your deed recorded?

And you need to check the court's records -- when was the specified litigation (which is what "lis" means) filed? Was that litigation in fact pending when you closed your deal?

None of this impacts the legitimacy (or lack) of the dispute between your Seller and the claimant. That dispute can go on without your involvement.

Sage advice from both Ken and Mike.

How will this impact your deal? You might have difficulty pulling cash out of your deal if this lingers on.

Title insurance protects the money you have invested in the place. In some cases, your attorney can write a letter of opinion about this situation and your bank may accept that.