Quick answer

An adverse claim and a notice of lis pendens are two annotations that can be placed on a Torrens certificate of title to warn third persons that the property is subject to a claim or a pending case, protecting the claimant and defeating a buyer's good faith. They serve similar warning functions but arise and operate differently. An adverse claim is registered by a person who claims any part or interest in registered land adverse to the registered owner, arising subsequent to the date of the original registration, when no other provision is made in the law for registering that claim; the claimant executes a sworn statement setting out their alleged right or interest, and it is annotated on the title. Its purpose is to apprise third persons that someone is asserting a claim on the property. Under the Property Registration Decree, an adverse claim is generally effective for thirty days from registration, after which it may be cancelled; however, jurisprudence has clarified that the annotation does not automatically lose force after thirty days and remains until cancelled by the court after a proper hearing, to prevent the claim from being defeated by mere lapse of time. A notice of lis pendens (Latin for 'pending suit'), on the other hand, is annotated when there is a pending court action affecting the title to, or possession of, real property; it warns that whoever acquires an interest in the property during the pendency of the suit does so subject to the outcome of the case. It is available only while a case is pending and is cancelled when the case is terminated or upon order of the court. In short, an adverse claim is a self-executed annotation of a claim of interest, while lis pendens depends on an actual pending case. Both destroy a subsequent buyer's claim of good faith. So both annotations warn the world of a claim on titled land, but the adverse claim is based on a claimed interest and lis pendens on a pending lawsuit.

Both Warn of a Claim on Titled Land

An adverse claim and a notice of lis pendens are annotations on a Torrens title that warn third persons of a claim or pending case — and defeat a later buyer's good faith.

Adverse Claim

Registered by one claiming an interest adverse to the registered owner, via a sworn statement. Nominally effective 30 days, but jurisprudence holds it does not automatically lapse — it stands until cancelled by the court after hearing.

Notice of Lis Pendens

Annotated when there is a pending court case affecting title or possession of the property. It warns that anyone acquiring an interest during the case takes it subject to the outcome. It is available only while the case is pending and cancelled when it ends.

Practical Takeaways

Frequently Asked Questions

What is an adverse claim? An annotation on a Torrens title by a person claiming an interest in the land adverse to the registered owner, arising after the original registration, made through a sworn statement to warn third persons of the claim.

What is a notice of lis pendens? An annotation that there is a pending court action affecting the title to or possession of real property, warning that whoever acquires an interest during the pendency of the suit takes it subject to the outcome of the case.

How long does an adverse claim last? Nominally thirty days from registration, but jurisprudence has clarified that it does not automatically lose force after thirty days and remains until cancelled by the court after a proper hearing.

What is the difference between the two? An adverse claim is a self-executed annotation based on a claimed interest, while a notice of lis pendens depends on an actual pending case affecting the property. Both defeat a subsequent buyer's claim of good faith.

This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.

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