What Is A Certificate Of Pending Litigation?

Introduction

When it comes to legal matters, there are a lot of terms and concepts that can be difficult to understand. One of these is the Certificate of Pending Litigation, or CPL. This document can have a significant impact on property ownership, so it’s important to understand what it is and how it works.

What is a Certificate of Pending Litigation?

A Certificate of Pending Litigation is a legal document that is filed with the court to notify potential buyers or lenders that there is a legal dispute over the ownership of a property. This certificate is also known as a lis pendens, which is Latin for “suit pending.”

Essentially, a CPL is a way for someone to protect their interest in a property that is the subject of a legal dispute. By filing this document, the person is putting any potential buyers or lenders on notice that there is a legal claim on the property and that they should proceed with caution.

Why is a Certificate of Pending Litigation important?

A CPL is important because it can affect the ability to sell or mortgage a property. If someone is interested in buying or lending money on a property that has a CPL filed against it, they may be hesitant to proceed because of the legal uncertainty surrounding the property.

In addition, a CPL can also prevent someone from selling or mortgaging a property. If the legal dispute is not resolved, the CPL will remain on the property, making it difficult to transfer ownership or secure a loan.

When is a Certificate of Pending Litigation filed?

A CPL is typically filed when there is a legal dispute over the ownership of a property. This can include disputes over the validity of a will, the interpretation of a contract, or a claim of fraud or misrepresentation.

Once the CPL is filed, it will remain on the property until the legal dispute is resolved. This can take months or even years, depending on the complexity of the case and the court’s schedule.

How is a Certificate of Pending Litigation filed?

To file a CPL, a person must first initiate legal proceedings against the owner of the property. This can include filing a lawsuit or starting arbitration proceedings.

Once the legal action has been initiated, the person can file a CPL with the court. The CPL must include the legal description of the property, the name of the person who filed the CPL, and a statement explaining the nature of the legal dispute.

What are the consequences of filing a Certificate of Pending Litigation?

Filing a CPL can have significant consequences for both the person who filed it and the owner of the property. For the person who filed the CPL, it can protect their interest in the property and prevent the owner from selling or mortgaging the property without their consent.

However, filing a CPL can also make it difficult for the owner of the property to sell or secure a loan. Potential buyers or lenders may be hesitant to proceed because of the legal uncertainty surrounding the property.

How can a Certificate of Pending Litigation be removed?

A CPL can be removed in a few different ways. The most common way is for the legal dispute to be resolved. Once the dispute is settled, the person who filed the CPL can voluntarily remove it from the property.

If the legal dispute is not resolved, the CPL may remain on the property indefinitely. However, the owner of the property can apply to the court to have the CPL removed if they can show that it is causing them undue hardship.

Conclusion

A Certificate of Pending Litigation can have a significant impact on property ownership. It is a legal document that is filed with the court to notify potential buyers or lenders that there is a legal dispute over the ownership of a property. It is important to understand what a CPL is and how it works, as it can affect the ability to sell or mortgage a property. If you are involved in a legal dispute over property ownership, it may be worth considering filing a CPL to protect your interest in the property.