In short: Usually not. A person who buys property while a recorded lis pendens is pending takes title subject to the outcome of that suit, and Florida courts generally do not let that buyer intervene to litigate the foreclosure. In Pappas v. PNMAC Mortgage Co., buyers who relied on recorded mortgage satisfactions had their complaint in intervention dismissed with prejudice, and the Third District affirmed without a written opinion on February 12, 2014.
The Facts
A lender filed a mortgage foreclosure in Miami-Dade County in August 2007 and recorded a notice of lis pendens. The case stalled for years. During that time, title to the property changed hands several times, and three satisfactions of the mortgage were recorded.
In October 2010 Theodore and Constancia Pappas bought the property for $270,000, relying on the recorded satisfactions. Their lawyer told the court they then spent about $190,000 improving it and paid the taxes and insurance. The foreclosure was still open, and the lis pendens was still of record.
PNMAC Mortgage Co. later pursued the foreclosure. The Pappases filed a complaint in intervention seeking to quiet title and asserting unjust enrichment, quantum meruit and equitable lien claims. The trial court dismissed it with prejudice. The points below are what the lawyers argued, not findings by the court.
- The buyers argued that recorded satisfactions are presumed valid, that they were entitled to rely on them, that the lis pendens statute does not reach an interest acquired after the notice was recorded, and that they should at least get discovery into how the satisfactions came to be recorded.
- The lender argued that the buyers took title subject to the recorded lis pendens and are bound by the foreclosure judgment as if they had been parties, that Third District cases going back decades bar a purchaser pendente lite from intervening, and that the lender still must prove its case at trial.
- On the equitable counts, the lender argued that the buyers made improvements for their own benefit, not at its request, so no benefit was conferred on the lender. Members of the panel suggested any remedy might be a separate damages action against whoever was responsible for the satisfactions.
The Decision
The Third District affirmed on February 12, 2014. The ACIS docket lists the disposition as “Affirmed – Per Curiam Affirmed,” with no written opinion. The buyers moved for clarification, a written opinion and certification of a question, and the court denied that motion on March 6, 2014.
A per curiam affirmance decides only this case. It tells us the dismissal of the complaint in intervention stands, but it does not tell us which argument persuaded the court or whether the satisfactions were valid.
The Law
Section 48.23 governs the notice of lis pendens. A recorded notice warns the world that a lawsuit may affect title. Under section 48.23(2), a lis pendens in an action founded on a duly recorded instrument, such as a recorded mortgage, does not expire after one year the way other notices do.
Section 48.23(1)(d) addresses interests that were unrecorded when the notice was recorded: their holders must move to intervene within 30 days of the recording or lose the right to enforce those interests against the property. A buyer who acquires title after the notice is recorded is treated as a purchaser pendente lite and generally takes subject to whatever judgment is entered, which is the rule the lender invoked.
Recorded satisfactions of mortgage carry a presumption of validity, and the buyers relied on that. The panel’s questions suggested that when a lis pendens and a satisfaction conflict, the open lawsuit puts a buyer on notice to look further.
Lessons
- A recorded lis pendens on a foreclosure is a stop sign. If the court file is still open, find out why before closing, even if a satisfaction appears in the records.
- Buying during a pending foreclosure usually means you are bound by the judgment and cannot step into the case to defend it.
- If a satisfaction was recorded by mistake or fraud, the realistic remedy may be against the people responsible, the closing agent or the title insurer, not the foreclosing lender.
- Title insurance and a careful closing lawyer matter most in exactly this kind of conflicting record.
- A per curiam affirmance without opinion settles that case only. It is not a published rule on recorded satisfactions.
Watch the Oral Argument
This is the recording of the actual oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.
🎯 Bought the Property, Then Intervened — Does a Lis Pendens Reach a Later Interest?
Go Deeper
- Bought From the Bankruptcy After the Lis Pendens? Intervene or Be Shut Out (Barnsdale v. PHH)
- Sale Buyer's Lis Pendens Attack on a County Court Judgment Fails (Koch v. Cruz Bay)
- Equitable Lien vs. a Third-Party Buyer Ends in a PCA (Osman v. Whitburn, LLC)
Frequently Asked Questions
What happens if I buy a house that has a lis pendens on it?
You generally take title subject to the lawsuit and are bound by the judgment as if you had been a party. In Pappas v. PNMAC, buyers who purchased while a foreclosure lis pendens was of record had their attempt to intervene dismissed, and the Third District affirmed.
Can I intervene in a foreclosure if I bought the property after it was filed?
Usually not. Florida courts generally treat a buyer after a recorded lis pendens as a purchaser pendente lite who cannot intervene to relitigate the foreclosure. Section 48.23(1)(d) gives a 30-day intervention window only to holders of interests that were unrecorded when the notice was recorded.
Does a recorded satisfaction of mortgage cancel a lis pendens?
Not by itself. The lis pendens stays of record until it is withdrawn, discharged or the case ends. In Pappas the buyers relied on three recorded satisfactions, but the foreclosure was still pending and its lis pendens was still recorded.
How long does a foreclosure lis pendens last in Florida?
A lis pendens in an action founded on a duly recorded instrument, like a recorded mortgage, does not expire after one year under section 48.23(2). Other notices expire after one year unless the court extends them.
Talk to a Florida real estate litigation lawyer
Weidner Law, P.A. handles Florida real estate disputes, title problems and appeals from St. Petersburg. If you need a real estate litigation lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: every Florida statute and court rule is on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
