Lis pendens and charged property

22/03/2018 07:24:00

Pamela Fitzpatrick analyses an increasingly common tactic to frustrate the sale of charged property.

Lis Pendens

‘Lis pendens’ is the Latin term for ‘litigation pending’. It is a burden that can be registered against land in circumstances where there is ongoing litigation over a property that could ultimately reduce its value or affect the interest of its registered owner. A lis pendens can be registered in respect of litigation in both the Circuit Court and the High Court.

Impact of registration

Potential purchasers will be understandably reluctant to proceed with a sale when they discover that a lis pendens is registered. In fact, writes Pamela Fitzpatrick, it almost always has the effect of preventing the person holding the property from selling in the normal way.

Fitzpatrick, a solicitor in the insolvency and commercial litigation department at McDowell Purcell, writes that registration of a lis pendens is increasingly being used by lay litigants or defaulting borrowers to frustrate the sale of charged property. The registration of a lis pendens may be completed with no input from solicitors or counsel, and no requirement to obtain leave of court. In contrast to the straightforward registration process, the procedure to vacate a lis pendens is relatively onerous (unless on consent).

Writing in the Gazette, Fitzpatrick looks in detail at the process of registering and vacating a lis pendens. She also explores relevant recent cases, including Kelly & O’Kelly v IBRC and O’Connor v Cotter.

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