Can a seller still sell property when there is a lis pendens and what ethic violations is it for a real estate agent

Real Estate Agent notified about lis pendens and law suit against seller

Asked on June 12, 2009 under Real Estate Law, Maryland

Answers:

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I don't know the Maryland real estate rules in detail, since I don't practice there.  But I'm reasonably sure that you would be ethically obliged to disclose the lis pendens very early in the conversation with any prospective buyer, and if there is anyone already talking to you about buying the property, the safest thing for you to do is to tell them yourself, let them learn about it from you.

Because I can guarantee that, unless the seller gets it removed very quickly, any buyer will learn about the lis pendens as soon as a title search is done.  While that lis pendens is there, it is like a mortgage that cannot be paid off, and I would be very surprised if any mortgage lender or title insurance company would give a buyer a commitment at all, and certainly not one that wouldn't require the lis pendens be removed before closing.


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