QUESTION
The breach of contract buyer threatens to file lis pendens after the seller sold the property to another buyer, is this possible? why?
Asked on Jan 10th, 2013 on Breach of Contract - New York
More details to this question:
The buyer couldn't arrange the finance and was in breach of contract, but the seller sold the property again, the buyer came back with the finance and only wants to pay a small amount of compensation. He wants to walk away with mutual release, otherwise will file for lis pendens to delay the closing of the property with the new buyer.
1 ANSWER
A lis pendens (or notice of pendency as it is known in New York) is a lien which a litigant can place on real property when he asserts a claim which may affect title to that real property. If the original buyer claims that he has a right to purchase the property pursuant to the original contract, he can file a notice of pendency, which will be removed if you can show that, because of the buyer's breach of contract or for other reasons, his claim is invalid. This will probably take time, however, and you will only be able to recover for any damages the delay causes (i.e. if the second buyer walks away) if the original buyer's claim and filing of a notice of pendency is deemed to have been frivolous.
Answered on Jan 10th, 2013 at 2:43 PM