The Challenge
On the scheduled closing date, the client became concerned that the seller intended to abandon the transaction and transfer the property to another purchaser.
Because development opportunities in the area were highly competitive, the client needed immediate legal protection to preserve its contractual rights before the property could be conveyed to a third party.
The matter required rapid litigation strategy and immediate action involving the filing and recording of a lis pendens against the property.
The Solution
Nochumson P.C. immediately advised the client to pursue legal action and prepared a lawsuit seeking to compel the seller to complete the transaction.
Within approximately one hour of speaking with the client, the firm initiated litigation and filed and recorded a lis pendens against the property’s title.
When the seller later transferred the property to another developer, Nochumson P.C. asserted that the subsequently recorded deed remained subject to the client’s previously filed lis pendens and contractual purchase rights.
The dispute ultimately proceeded through extensive litigation and trial proceedings between the competing developers.
A properly filed lis pendens can preserve a purchaser’s rights in real estate litigation and place third parties on notice of an existing legal claim involving the property.
The Results
Following trial proceedings, the competing developer ultimately agreed to transfer the property to Nochumson P.C.’s client for a nominal amount.
The resolution allowed the client to regain control of the development opportunity and enforce its rights under the original agreement of sale.
