Monthly Archives: December 2006

December 28, 2006

Scope Of Lis Pendens Limited

By Tim Gordon

Thomas v. Lynx (Colo. App. 2006)

The Court of Appeals addressed several notice-related issues raised in a foreclosure action. The property was foreclosed, the defendants appealed but did not request a stay, and the property was subsequently sold to a third party. The Court held that:

(1) The appeal was not moot although the property had been foreclosed and sold to a third party and the appellant did not redeem (there is a split of authority in the divisions of the Colorado Court of Appeals on this issue).

(2) A recorded lis pendens does not put the entire world on notice. Instead, the lis pendens is only meant to provide notice to anyone acquiring an interest in the subject property "by, through, or under any party named in such notice . . . ." "Thus, a notice of lis pendens is not notice to a person who acquires an interest in the property from someone other than the parties named in the notice."

(3) A lis pendens is not notice to an otherwise bfp if cannot be found in the bfp’s chain of title. This is because, per Colorado’s statute, the clerk and recorders are only required to keep a grantor/grantee index.

(4) A searcher of title is not obligated to determine the names of all shareholders, officers, and directors of corporation landowners and search their names also.

Read slip opinion