Lis Pendens filed before closing

[Chubasco]

What is the name of your state? Arizona

According to contract we are supposed to close on the house tomorrow. Turns out a lis pendens was filed on the property by seller's ex-wife last month. Seller is not likely to negotiate with her.

Here are my questions: If the buyer defaults on the contract, seller gets the earnest money; What happens when the seller cannot fulfill his contractual obligation to close?

What is our legal position in this matter?

[nextwife]

It's not automatic that a property with an LP cannot close. I see closings arranged with creditors who have filed LPs all the time.

If he is unable to ultimately close BECAUSE of the LP, then likely the clause in the purchase contract that states he will convey "good and marketable title (or similar language)" cannot be fulfilled.

[HomeGuru]

Originally Posted by Chubasco

What is the name of your state? Arizona

According to contract we are supposed to close on the house tomorrow. Turns out a lis pendens was filed on the property by seller's ex-wife last month. Seller is not likely to negotiate with her.

Here are my questions: If the buyer defaults on the contract, seller gets the earnest money; What happens when the seller cannot fulfill his contractual obligation to close?

What is our legal position in this matter?

**A: it depends upon how your contract is written. In most cases, The Buyer walks and gets his earnest money back.

[Brownfieldman]

contract language controls. The Buyer may be able to get some expese money back (e.g. title fees, survey fees, god forbid attorney fees, etc)