When you’re getting ready to sign off on a deal to purchase a real estate property, chances are you don’t read every single word on the document. However, the one thing you should always look for is whether there is a Notice of Pendency on the property. This simply means there is a pending lawsuit against the property, and it’s something you should take seriously. If you’re still interested in making the purchase, hiring a NYC law firm to do due diligence prior to the transaction taking place is highly recommended. Otherwise, you may be putting yourself in a serious predicament down the road.
See What The Notice of Pendency Is About
There are many different reasons why a property may have a Notice of Pendency, including an inheritance complication, tax problems, a foreclosure situation and many more. Depending on the situation, there’s a chance a New York lawyer can remove the lawsuit associated with the property so you can safely proceed with the transaction. If the property you’re looking to purchase can be potentially valuable for you, then it’s well worth the attorney fees to get the Notice of Pendency removed.
Know What Your Risks Are When Purchasing The Property
If you’re purchasing a property with a Notice of Pendency, attorneys in NYC will caution you that most lenders won’t finance the mortgage until the lawsuit is settled and taken off of the title. In addition, the chances of a title company insuring the property with a Notice of Pendency against it are very slim. And one of the most significant risks is if you choose to go through with the transaction and allow the lawsuit to continue. Depending on the outcome of the lawsuit, you may no longer own the property at the conclusion.
Always Work With A Real Estate Lawyer
Any time you see a Notice of Pendency, it’s best to work with a New York lawyer to understand it completely. Most of the time it’s best to walk away from the deal, but every situation is unique. The best attorneys in NYC handle these situations all the time, and most real estate buyers say it’s well worth the time and money to investigate the matter. Having knowledge about the situation is much better than undertaking the risks associated with it.
Gordon & Gordon is experienced in real estate transactions, as well as litigation proceedings. We help real estate buyers protect their investments from the very beginning by ensuring there are no potential surprises in the transaction. While every situation is unique, we’ve seen just about everything when it comes to real estate transactions, so contact us today to schedule a consultation and learn about how we can represent you.