Selling a House With an Ongoing Legal Dispute in South Carolina
Not every lawsuit stops a house sale. What stops a sale is a claim recorded against the property itself, and in South Carolina the usual mechanism is a notice of pendency of action, commonly called a lis pendens.
Knowing whether one has been filed is the first thing to establish, because it changes everything about your timeline.
Homebuyers SC buys properties with unresolved disputes across Charleston, Berkeley, and Dorchester counties, and works with the closing attorney to establish what is actually recorded.
What is a lis pendens?
It is a recorded notice that litigation affecting the property is pending, which puts the world on notice that title is subject to the outcome.
Under SC Code 15-11-10, a plaintiff may file the notice “not more than twenty days before filing the complaint or at any time afterwards,” and a defendant asserting an affirmative claim affecting real estate may file “at the time of filing his answer or at any time afterwards.” In a mortgage foreclosure the notice must be filed twenty days before judgment. The notice names the parties, states the object of the action, and describes the property.
Practical effect: it appears in the title search, and a buyer taking title does so knowing the litigation could affect it. Most financed buyers will not proceed, and their lender will not.
Whether a lis pendens applies, and what it means for your particular sale, is a question for a licensed South Carolina attorney. This page is background so you know what to ask.
Which disputes actually stop a sale?
| Dispute | Typically blocks a closing? |
|---|---|
| Boundary or title claim, quiet title action | Yes, and usually with a lis pendens recorded |
| Partition action among co-owners or heirs | Yes |
| Divorce where the house is in issue | Often, through a court order or a recorded notice |
| Foreclosure | Yes, it is itself a suit against the property |
| Mechanics lien enforcement | Yes, once filed and recorded |
| A money judgment against you personally | It becomes a lien on real property you own, and is paid at closing |
| A contract dispute with no property claim | Usually not, unless it becomes a recorded judgment |
| A neighbor dispute with no filing | Usually not, though it may be disclosable |
| An insurance claim dispute | Usually not, though who receives the proceeds matters |
The pattern: a claim against the property blocks the sale. A claim against you personally gets paid out of the proceeds. Those are different problems with different answers, and owners routinely assume they have the first when they have the second.
See selling a house with title problems and selling a house with back taxes or liens.
How do I find out what is recorded?
- The county Register of Deeds shows recorded documents against the property, including a lis pendens and recorded judgments. Public record.
- The clerk of court shows filed cases.
- Your own attorney can tell you what has been filed and what it does.
- A title search by the closing attorney does all of this properly, which is the point of having one.
If you have been served with anything, or received anything from a lawyer, take it to an attorney before you take it to a buyer.
Can I sell before the dispute is resolved?
Sometimes, and the honest answer depends on what is recorded.
| Situation | What is possible |
|---|---|
| Nothing recorded against the property | Usually a normal sale. Disclose what is relevant |
| A money judgment recorded | Sell normally. The judgment is paid from proceeds at closing |
| A lis pendens recorded | Generally not until it is resolved, released, or otherwise dealt with |
| A dispute about who owns the property | The ownership question has to be answered first |
| Litigation that could produce a future claim | Possible, and the buyer prices the risk. The contract terms matter |
A cash buyer has more tolerance for a slow or uncertain situation than a financed buyer does, because there is no lender applying its own conditions and no rate lock expiring. That is not the same as being able to close through a recorded claim on title.
What should I bring to the buyer?
Candor, early, and documents where you have them.
- What the dispute is about, in one paragraph
- Whether anything has been filed, and where
- Whether a lis pendens is recorded
- Your attorney’s name, so the closing attorney can speak to them
- The realistic timeline, if your attorney has given you one
A buyer who learns about litigation from the title search rather than from you renegotiates, and reasonably. In South Carolina the closing must be supervised by a licensed attorney under State v. Buyers Service Co., 292 S.C. 426, 357 S.E.2d 15 (1987), so this will be found. Ask any buyer which closing attorney they use. See how to choose a cash home buyer in Charleston.
Frequently asked questions
Can a lis pendens be removed?
There are procedures for it, and they depend on the case. This is squarely an attorney question.
Does an ongoing lawsuit have to be disclosed?
SC Code 27-50-40 requires a residential property condition disclosure statement covering specified categories, and SC Code 27-50-30 exempts certain transfers. Whether and how a particular dispute must be disclosed is a question for your attorney. Disclose what you know.
What if the dispute is with a co-owner?
Then the ownership question is the dispute, and South Carolina’s heirs property law may apply if the property came through a family death. See selling a house in probate with multiple heirs.
What if it is a divorce?
The house is usually part of the larger question, and a court order can control what you may do with it. See selling a house after divorce when one spouse will not cooperate.
Will this lower my price?
Unresolved risk is priced. Documentation reduces the discount because it converts unknown risk into known risk.
How fast can a cash sale close once the property is clear?
Usually one to three weeks. See how fast can I sell my house in South Carolina.
Need to sell this house?
We buy houses across Charleston, Berkeley, and Dorchester counties for cash, exactly as they sit. No repairs, no cleaning, no commissions, and you choose the closing date.
Caleb Pearson is the founder of Homebuyers SC and a licensed South Carolina real estate agent (License #83101) with 15+ years of real estate investing experience. He has personally been involved in over 500 purchases across South Carolina.