Selling a House With an Active Lawsuit in Florida
2 min read · Last updated 2026-08-03 · Reviewed by Camilo Palacio, Licensed Florida Real Estate Professional (License #3280644, REALTOR®)
Cash Flow Deals is a real option even after a lawsuit has been filed against your Florida property. Once a lis pendens is recorded, the house cannot pass clear title to a traditional buyer's lender until the case resolves or the notice is discharged. Cash Flow Deals can lock a net price and structure the closing around that legal timeline, instead of leaving the house frozen on the open market.
| Factor | Traditional Listing | Cash Flow Deals |
|---|---|---|
| Timeline | A recorded lis pendens blocks a lender-funded closing until the suit resolves or a court discharges it, and Florida Statute 48.23 lets it stand for up to a year, longer with a judge's extension. | Cash Flow Deals works the timeline around the lawsuit and the discharge process instead of pulling out of the deal. |
| Repairs | Buyers on the open market often will not commit to inspections or repair negotiations on a property with clouded title. | Net price locked, repairs scoped once title is confirmed clear. |
| Fees / Costs | Realtor commission, negotiable since the Sitzer/Burnett settlement took effect August 17, 2024, plus attorney fees to litigate or discharge the lis pendens. | One flat fee through Cash Flow Deals' licensed brokerage partner, paid at closing. |
What a Lawsuit Against the Property Actually Does
When someone files a lawsuit that affects title to real property in Florida, they typically record a notice of lis pendens in the county's official records. Under Florida Statute 48.23, that notice puts every future buyer, lender, or lienholder on notice that their interest is subject to whatever the lawsuit decides. In plain terms: once it is recorded, nobody can get clear title behind it until the case is resolved or a court discharges the notice. This is general information, not legal advice for your specific case. Confirm the details with a licensed Florida real estate attorney.
Why a Lender Will Not Fund Behind It
A title company will not issue clear title insurance, and a buyer's FHA or conventional lender will not fund a loan, on a property with an active lis pendens recorded against it. The notice itself is not effective beyond one year from when the lawsuit was filed and expires at that point, unless the claim is based on a recorded instrument or a construction lien under Florida's mechanics lien law, or a court extends it for good cause. A property owner can also ask the court to discharge the notice early if the underlying lawsuit does not actually affect title or lacks legal grounds.
What Cash Flow Deals Actually Is
Cash Flow Deals is a Florida real estate investor that locks in a net price for a seller's house before repairs are scoped, using a novation-based, flat-fee process arranged through its licensed FL brokerage partner, Silver Door Realty — not a traditional listing, and not a brokerage itself. It is not a cash buyer and it never takes title itself. Cash Flow Deals connects the property to a real FHA or conventional buyer whose own lender funds the purchase, once title is clear enough to transfer.
Cash Flow Deals' Process for a House With a Lawsuit Filed Against It
Cash Flow Deals' Process: 1. Request your net-price walkthrough. Cash Flow Deals looks at the lawsuit, the lis pendens filing, and what it would take to resolve or discharge it. 2. Cash Flow Deals connects the property to a real FHA or conventional buyer, with the legal timeline factored into the closing date instead of ignored. 3. Camilo Palacio and the Silver Door Realty team coordinate with your attorney and the title company to confirm what has to clear before the signing. 4. Title transfers once, seller to buyer, at one signing, for the net number locked at offer time.
What If Repairs Come Up While the Legal Issue Clears
The one exception: if something structural surfaces that was not visible or disclosed before we signed — foundation issues, hidden moisture, old wiring, cast-iron drain failure — we re-cost it and bring the number back to you. You decide. You can walk away. We disclose what we know at offer time so this almost never happens.
Common questions
Can I sell my house in Florida if there's a lawsuit filed against it?
Yes, but a recorded lis pendens has to be resolved or discharged first for a traditional lender-funded sale to close clear.
What is a lis pendens?
A notice recorded in the county's official records that a lawsuit affecting the property is pending, so anyone who buys or lends against it takes that interest subject to the case's outcome.
How long does a lis pendens last in Florida?
Under Florida Statute 48.23, it expires one year from when the lawsuit was filed unless it is tied to a recorded instrument or construction lien, or a court extends it.
Can a lis pendens be removed before the lawsuit ends?
A property owner can ask the court to discharge it early if the lawsuit does not actually affect title or does not legally support the filing. Talk to a Florida real estate attorney about your specific case.