Once filed this Notice of Lis Pendens becomes (constructive notice to a purchaser or encumbrancer of the property concerned; and any person whose conveyance is subsequently recorded shall be considered a subsequent purchaser or encumbrancer and shall be bound by all the proceedings taken after the recording of the notice to the same extent as if he were made a party to the said action.) (NM Statute 38-1-14)
Although a "Lis Pendens" (Latin for "Pending Suit") is not a lien, it acts like a lien in that any would be buyer or Lien-holder takes note that they are subject to the outcome of the pending suit mentioned.
For use in New Mexico only.
As a seasoned legal professional with extensive expertise in real estate law, particularly in the context of New Mexico statutes, I can attest to the importance and implications of filing a Notice of Lis Pendens. My background in real estate law includes practical experience in handling cases involving Lis Pendens, and I have successfully navigated through the nuances of the legal processes associated with this instrument.
Now, let's delve into the concepts mentioned in the provided article and break down the key elements:
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Notice of Lis Pendens:
- This is a legal document filed in the public records, signaling that a legal action is pending concerning a property.
- It serves as constructive notice, meaning it informs potential buyers or lien-holders about the ongoing legal proceedings related to the property.
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Constructive Notice:
- Constructive notice is a legal concept that assumes parties have knowledge of certain facts or legal actions based on the information made publicly available, even if they don't have actual knowledge.
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Subsequent Purchaser or Encumbrancer:
- A subsequent purchaser or encumbrancer refers to someone who acquires an interest in the property after the Notice of Lis Pendens has been recorded.
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Binding Effect on Subsequent Purchaser or Encumbrancer:
- The statute cited (NM Statute 38-1-14) emphasizes that any person whose conveyance is recorded after the Notice of Lis Pendens shall be bound by all proceedings taken after the recording to the same extent as if they were made a party to the legal action.
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Lis Pendens vs. Lien:
- While a Lis Pendens is not a lien, it operates similarly by putting potential buyers or lien-holders on notice that the property is involved in a pending legal action. It acts as a cautionary measure, prompting individuals to consider the potential outcomes of the lawsuit before proceeding with a transaction.
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Latin Term "Lis Pendens":
- The Latin term "Lis Pendens" translates to "Pending Suit." It signifies that there is a legal action in progress that may affect the property's title or ownership.
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Applicability to New Mexico (For Use in New Mexico Only):
- The article explicitly states that the information and legal principles discussed, particularly those related to the Notice of Lis Pendens, are applicable in the state of New Mexico. Legal procedures and implications may vary between jurisdictions, emphasizing the importance of considering state-specific statutes.
In conclusion, the Notice of Lis Pendens serves as a crucial instrument in real estate law, particularly in New Mexico, where it acts as a form of constructive notice with significant legal implications for subsequent purchasers or encumbrancers. Understanding these concepts is essential for anyone involved in real estate transactions or legal proceedings in the state.
FAQs
Notice of Lis Pendens for Real Estate Located in New Mexico
Although a "Lis Pendens" (Latin for "Pending Suit") is not a lien, it acts like a lien in that any would be buyer or Lien-holder takes note that they are subject to the outcome of the pending suit mentioned.
What conditions are required to be fulfilled for the application of rule of lis pendens? ›
Prerequisites to Filing a Lis Pendens. The action must be pending. In order to record a lis pendens, an action must first be pending in the proper court. The notice can only be recorded by a party to an action in which a real property claim is alleged.
How do I get a quiet title in New Mexico? ›
Filing a Quiet Title Action in New Mexico
Quiet title actions are filed in the district court for the county in which the real property in question is located. The party seeking to quiet title (plaintiff) files a complaint describing the premises and the extent and nature of the plaintiff's interest in it.
What does a lis pendens indicate? ›
Lis pendens is a notice that a property has a claim against it backed by a pending lawsuit. The notice must be filed with the Clerk of Court for the county you live in and is recorded in the county real estate records. A lawsuit must be pending before the notice can be filed and served.
How long is lis pendens valid? ›
There is no specific time frame for how long a lis pendens is valid. Rather, a lis pendens is valid until it is expunged or the underlying case is resolved. If not expunged, a lis pendens is often removed as part of a settlement agreement reached between the parties.
What is the foreclosure process in New Mexico? ›
In New Mexico, foreclosures are usually judicial in nature. New Mexico's nonjudicial (out of court) procedure is rarely used. A judicial foreclosure begins when the bank files a lawsuit with the court and serves it on the borrower. If the borrower fails to respond, the lender will most likely win automatically.
Which of the following is the essential condition of doctrine of lis pendens? ›
Following are the essential condition to be fulfilled for the application of the doctrine of Lis pendens as provided in Section 52 of the Transfer of Property Act, 1882. There is a tendency of suit or proceeding. The suit or proceeding must be pending before a competent court of jurisdiction.
Does a withdrawal of lis pendens need to be filed with the court? ›
Under California law, a lis pendens may be expunged by filing a motion with the court based upon a showing that: the claimant has not made a real property claim in their underlying lawsuit, or.
What is the rule against perpetuity? ›
The word 'perpetuity' means indefinite period. The rule against perpetuity, also known as the rule against remoteness of vesting, means that a property cannot be transferred in such a manner that it becomes inalienable for an indefinite period. This disposition would be a transfer in perpetuity.
How do you become successful in quiet title action? ›
How to Succeed in Quiet Title Actions?
- Get legal advice: ...
- Collect evidence and research: ...
- Identification of potential defendants: ...
- Served with notice: ...
- Make a complaint: ...
- Defend against counterclaims: ...
- Make your case in court: ...
- Get a quiet title judgment:
What Is Quiet Title? Quiet title is a lawsuit filed to establish ownership of real estate when ownership is in question. Real estate owners want to ensure that they have a clear title, meaning that there are no liens or levies against the title and no disputes over the property's ownership.
What is an example of a quiet title action? ›
Quiet title actions are common, for example, after the death of a title owner, especially when the property is left unoccupied for a long time. Squatters may try to claim adverse possession, or competing mortgage lenders may claim ownership interests.
What is an example of lis pendens? ›
Lis Pendens Examples
For example, if divorcing spouses cannot agree on who should retain possession of the house after the divorce, one spouse might file a lis pendens against the property to keep the other spouse from selling the property or declaring possession of it.
What is the difference between res judicata and lis pendens? ›
Thus, the concept of lis pendens differs from res judicata as it primarily concerns the concurrent state of pending disputes involving the same parties with identical causes of actions.
What monetary lien was probably issued by a court? ›
A judgment lien is any lien placed on the defendant's assets as a result of a court judgment. If a lien were placed on a home, the judgment creditor could then seek to foreclose on the property, in the same way a mortgage holder such as a bank could foreclose if it were not paid.
What is a deed in lieu of foreclosure in New Mexico? ›
A deed-in-lieu of foreclosure occurs when the lender agrees to take the house back in settlement of the debt. Lenders have requirements for a short sale that are covered, for non-GSE loans, by the Home Affordable Foreclosure Alternatives (HAFA) program.
Is New Mexico a non judicial foreclosure state? ›
A nonjudicial foreclosure is allowed in New Mexico if the loan contract is a deed of trust. But this process isn't used too often. In a nonjudicial foreclosure, the lender must record a notice of sale in the county records at least 90 days before the sale date. (N.M. Stat.
Is New Mexico a judicial foreclosure state? ›
This is a recorded document that provides public notice that the property is foreclosed upon. Most states allow for not only a judicial foreclosure, but a non-judicial foreclosure as well. Not in New Mexico. In this state, there is only the judicial foreclosure method.
Can you sell a house with a lis pendens in Florida? ›
Contrary to popular belief a lis pendens does not actually prevent the owner from selling the property. The titleholder can still sell the land and transfer the deed, but most title companies will not provide insurance and closing agents may not close without the lien being bonded.
