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November 2012 Archives

The Utah Lis Pendens: Protected Notice or Wrongful Lien?

The wrongful lien statute allows for removal of any encumbrance against property if the lien is wrongful. A lis pendens can be a wrongful lien if it was recorded before litigation commenced involving title to or an interest in real property. A lis pendens effectively bars anyone from refinancing and removing equity in property or selling or transferring the property. Those who receive the property with a lis pendens recorded against it take title subject to whatever claim is ultimately determined by a court of law.