Protecting California Real Estate Assets

Authors: Adam Starr

Unlike Oregon, California has developed a detailed statutory scheme for maintaining and removing a lis pendens, a legal remedy that has the practical effect of freezing title to real estate for the duration of a lawsuit.  It’s immediately effective, even before a court has ruled on the merits or scope of the claimant’s suit.  Consequently, when litigation involves California real estate holdings, Oregon companies and attorneys should be well versed in the particulars of California’s unique lis pendens laws.

For Oregon companies with real property claims, failure to comply with the statutory scheme can result in a loss of the real property security, drastically affecting the economics of pursuing their claim. Unprepared Oregon companies with California holdings may end up frozen in litigation.

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Article originally published in the January 29, 2013 edition of the Daily Journal of Commerce.

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