Being in a lawsuit is stressful enough. If you need to sell your house at the same time, you're probably wondering whether you even can.

The answer depends mostly on one thing: whether the lawsuit is about the house itself. This is general information, not legal advice. Talk to your attorney before you list, because the details of your case matter.

If the lawsuit is not about your house

Say you're being sued over a car accident, a business dispute, or a debt. The lawsuit isn't about the property.

• Generally, you can still sell the house while the case is going on
• Until there's a judgment against you that's been recorded, the lawsuit usually doesn't attach to the house
• If a judgment does get recorded, it can become a lien that has to be paid at closing

One big caution: don't sell or give away property in a way that looks like you're trying to hide it from someone suing you. Courts can undo transfers made to dodge creditors, and it can make your case much worse. Selling at fair market value with your attorney's knowledge is a very different thing.

If the lawsuit is about your house

Cases like boundary disputes, co-owner fights, contract disputes with a previous buyer, contractor claims, and foreclosures are directly about the property. Those are much trickier.

The other side may record a notice of the lawsuit, called a lis pendens (Latin for "suit pending"), with the county clerk. That notice warns anyone buying the property that it's tied up in court.

• A title company usually won't insure a sale while a lis pendens is on record
• Most buyers and lenders will walk away until it's resolved
• Some cash investors will buy anyway, but at a price that reflects the risk

Usually the path forward is resolving the dispute first, settling it as part of the sale, or getting the court's permission to sell.

How a sale can actually help

Sometimes selling is the solution. Two co-owners fighting over a house can agree to sell and split the money. A contractor claiming they're owed can be paid from the sale proceeds at closing in exchange for releasing their claim. Your attorney and the title company can often structure the sale so the dispute gets settled at the closing table.

Frequently asked questions

Can I sell my house if I'm being sued?

Often yes, if the lawsuit isn't about the house and there's no recorded judgment yet. Check with your attorney first.

What is a lis pendens?

A recorded public notice that a lawsuit involving the property is pending. It warns buyers and usually stops a normal sale until the case is resolved or the notice is removed.

Will a judgment against me stop a sale?

A recorded judgment lien usually has to be paid from the sale proceeds at closing. If the proceeds cover it, the sale can go through.

Can an investor buy a house that's tied up in a lawsuit?

Some will, at a discount that reflects the risk and delay. Putting it in front of several buyers helps you get a fair number. Compare paths on our Your Options page.

Need to sell while a case is open?

Call Winner Realty at (502) 305-8915 or book a time. If you're in a dispute with a co-owner, read our co-owner guide, and see every guide on our Selling in a Tough Spot page.