Lis Pendens Bond In Real Estate

lis pendens bondA lis pendens bond is a type of surety bond required of a plaintiff that is attempting to block the sale of property. Some cases such as divorce often hinge around property. In the event the defendant is attempting to sale the property before the court proceedings finish the plaintiff can step in and demand a temporary halt of sale. Now this could jeopardize the entire sale so the courts in every state will require a lis pendens bond to cover any financial hardship that should befall the defendant.

A court will require this surety bond in most states because there is still a possibility the stop of sale will be deemed wrongful. While the court recognizes the concerns of the plaintiff, they must account for the risk the defendant takes as well. By posting this bond a plaintiff shows the court good faith that the action is not done wrongfully or without merit.

When a plaintiff uses a lis pendens bond they are able to stop the sale of property faster than if they wait for the final court decision. It can take weeks or months to determine property ownership but a bond can generally be granted in a few days. This is especially helpful in situations where the acquisition of property is learned about on the fly.

The bond amount will be set by the court after determining the value of the sale, the cost to the court, and weighing any risk to the defendant. Once the bond amount is set it will be quick to post a bond. Jurisco will be standing by to help through the process. Have additional questions about a lis pendens bond in your state? Don’t hesitate to call or email the surety bond experts at Jurisco to speak with a surety bond professional today.

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