How to Sell a Warehouse with Lis Pendens in Texas: 2026 Guide

A lis pendens on your warehouse is a legal notice that informs anyone checking the property records that your building is involved in a lawsuit. That makes selling way more complicated than it should be.

But complicated doesn’t mean impossible. You just have to be realistic about what kind of buyers you’re dealing with.

In this blog, we’ll discuss your options for removing a lis pendens and how to sell anyway. Let’s get into it.

What Is a Lis Pendens in Texas?

A lis pendens is a public notice that a lawsuit involving your property has been filed. It is recorded with the county clerk and becomes part of the public record, where anyone running a title search will find it immediately.

The big thing to understand is that it’s not a lien. You don’t have to pay it off before you can sell.

It’s more like a giant red flag telling buyers that there’s legal trouble brewing and they might inherit the issues if they buy your warehouse.

Texas law lets plaintiffs file these when their lawsuit directly affects who owns the property or has rights to it. For example, ownership disputes, contract breaches involving the sale of the property, or boundary disputes.

If someone’s just suing you for money, they can’t file a lis pendens unless they’ve already won and obtained a judgment lien.

How Does a Lis Pendens Affect Real Property

The second that notice affects your records, your warehouse becomes radioactive to most buyers.

Traditional buyers can’t get financing because banks won’t touch a property that might get yanked away in a lawsuit. Meanwhile, title companies won’t issue insurance without a clean title.

Your property value tanks, too. Anyone willing to consider buying it will demand a massive discount because they’re gambling on the lawsuit’s outcome.

Plus, you’re stuck dealing with it. You can’t just sell and wash your hands of the problem. If the plaintiff wins later, the court could reverse the sale or make the new owner deal with the judgment.

That’s why you have to disclose this thing upfront or you’ll end up with even bigger legal headaches than you started with.

Can You Sell a Warehouse with Lis Pendens in Texas?

Yes, you can sell a warehouse with Lis Pendens in Texas. The statute doesn’t say you can’t transfer property just because there’s a lis pendens on it.

You still own the warehouse, so you’ve still got the right to sell it to whoever’s willing to buy.

Your biggest problem would be finding someone who’ll actually go through with the purchase. Most regular buyers will back out the second they see that notice on the title report.

Their lenders won’t approve the loan. Their attorneys will tell them to back off, too. The whole deal falls apart before you even get to negotiations.

But some buyers don’t care about any of that. For instance, cash buyers, investors who flip commercial properties, and companies that specialize in distressed real estate deals are used to this kind of situation. If you need to sell fast, consider working with a company that buys homes in Texas — they can close quickly even with legal complications.

They know how to work around the lis pendens. They’re also willing to take on the risk if the price is right.

So yes, you can sell, but you need to be realistic about who your actual buyer pool is and what kind of offer you’ll get.

Why Lis Pendens Texas Notices Get Filed

Someone files a lis pendens when they’ve got a lawsuit that directly involves your property’s ownership or their rights to it.

It’s their way of making sure the whole world knows about their claim before you try to sell the building out from under them.

Foreclosure Actions on Texas Property

This is probably the most common reason you’ll see a lis pendens.

If you’re behind on your mortgage or a commercial loan tied to the warehouse, the lender can file for foreclosure and record a lis pendens on the property to protect its interest while the case moves through court.

It tells potential buyers that the bank might end up owning this place, so don’t get too attached.

Boundary Disputes and Property Line Issues

This happens when your neighbor thinks part of your warehouse sits on their land or there’s confusion about where the actual property lines are.

When that argument ends up in court, the person suing you can file a lis pendens to prevent you from selling the property before the judge decides who owns what.

These disputes can drag on forever. The notice stays on your title the whole time.

Contract Disputes Involving Real Property

Let’s say you signed a contract to sell your warehouse to someone, then backed out or tried to sell it to someone else for more money.

The original buyer can sue you for specific performance and file a lis pendens to stop you from completing any other sale until the court decides whether you must honor the first contract.

It’s their way of locking down the property while they fight to buy it.

Partnership Dissolution Claims

If you own the warehouse with business partners and things go south, one partner might sue to dissolve the partnership and divide the assets.

They’ll file a lis pendens to prevent anyone from selling the property while the court figures out who gets what.

These cases are really stressful, especially when everyone has different ideas about what the building’s worth or who deserves a bigger cut.

Mechanic’s Liens and Construction Disputes

Contractors or suppliers who didn’t get paid for work on your warehouse can file a mechanic’s lien. Sometimes that comes with a lis pendens if they’re suing to enforce the lien.

They want to make sure you can’t sell the property and keep the money while they’re still fighting to get paid for the work they already did.

The lis pendens keeps the property tied up until the lawsuit gets resolved or they get their money.

Texas Guide to Selling a Warehouse with Lis Pendens

Here’s exactly what you need to do to sell your warehouse even with the lis pendens hanging over it.

Step 1: Review the Lis Pendens Filing

Your first action is to get the actual lis pendens document from the county clerk’s office and read through it as your life depends on it.

You need to know exactly what the lawsuit is about and who filed it. The document will also tell you what they’re claiming and when it was recorded.

You should understand every detail because buyers are going to grill you about every single line in that filing.

Check the case number and the court where the lawsuit was filed. Look up the case online if you can.

The more you know about what you’re dealing with, the better you can explain it to potential buyers without sounding like you’re hiding something.

Step 2: Consult with a Real Estate Attorney

Get a lawyer who actually knows Texas property law and has dealt with lis pendens cases before, not just someone who does wills and divorces.

They’ll tell you what your options are and whether you can get the notice removed. They can also explain to you how strong the plaintiff’s case is and how to protect yourself during the sale.

This isn’t the time to wing it or rely on advice from your buddy who watches Suits.

A good attorney can also help you decide whether selling now makes sense or whether you should wait and try to resolve the lawsuit first.

They might spot issues in the lis pendens filing that could get it thrown out. They might tell you straight up that you’re better off settling the case before you try to sell.

Step 3: Understand the Underlying Lawsuit

You need to find out what’s actually happening in the lawsuit that triggered the lis pendens.

Check if it’s going to trial soon and whether settlement talks are happening. You need to know how long this whole thing might drag on.

Talk to your attorney about the realistic timeline and the different outcomes.

If the plaintiff is suing because you allegedly breached a contract to sell them the property, that’s way different from a boundary dispute with your neighbor.

The timeline and potential outcomes of that lawsuit will determine how you approach selling the warehouse and what you can realistically promise buyers.

Some buyers might be willing to wait out a lawsuit that’s almost resolved, but nobody wants to buy into a legal problem that could take forever.

Step 4: Assess Your Warehouse’s Market Value

Get a professional appraisal from someone who knows commercial real estate in your area, but understand that the lis pendens will knock a large amount off what you could’ve gotten in a clean sale.

You need to know what the property would be worth without the lis lendens because that’s your baseline. Then figure out what discount you’re willing to accept to sell it now, instead of waiting months or years for the lawsuit to resolve.

Be honest with yourself about the numbers and don’t get attached to some fantasy price. The market doesn’t care what you paid for the warehouse or how much you put into it.

Right now, with a lis pendens attached, it’s worth what a cash buyer is willing to pay. That number probably won’t look good.

Step 5: Gather All Property Documentation

Round up every document related to your warehouse, including deeds, surveys, tax records, lease agreements if you’ve got tenants, maintenance records, inspection reports, etc.

Get copies of the lawsuit papers, the lis pendens filing, any correspondence with the plaintiff’s attorney, and any motions or court orders related to the case.

Buyers who are willing to take on a property with a lis pendens are going to do serious due diligence because they’re not idiots.

The more organized you are upfront, the faster you can move when you find someone interested. Put it all in a folder (digital or physical), so you won’t get stressed sorting through your documents when a buyer’s attorney emails asking for proof of something.

Step 6: Determine Your Selling Timeline

Think about whether you’re in a rush to sell or if you can wait out the lawsuit.

It’s because your timeline affects everything, including the price you’ll accept and the type of buyer you target. It also impacts whether you should try to remove the lis pendens first.

If you’re wasting money on mortgage payments, property taxes, and maintenance while the warehouse sits empty, you might need to sell fast and take whatever offer comes through.

But if you can afford to wait, you might have more time to explore removing the lis pendens. Just be real with yourself about what you can actually afford to do, not what you wish you could do.

Step 7: Disclose the Lis Pendens to Potential Buyers

Tell every single buyer about the lis pendens right up front, like first conversation up front.

Don’t wait for them to find it in the title search and feel like you tried to pull a fast one.

Explain what the lawsuit is about and where it stands in the court process. Detail what could happen if the plaintiff wins and what your attorney thinks about the whole situation.

It might scare some people off, but hiding it will give you problems later. It could get you sued for fraud or misrepresentation. Put it in writing, too.

Send an email or include it in your listing materials so there’s a paper trail showing you disclosed everything. Buyers respect honesty, especially when they’re considering a complicated deal. Being upfront builds trust that can actually help you close. Meet the Commercial Property Offer team to see who you’ll be working with when selling your warehouse.

Step 8: Negotiate with Interested Parties

When you find a buyer who’s willing to move forward, expect them to negotiate hard. For sellers outside Texas, you can also connect with Alaska cash buyers experienced in handling properties with liens and legal complications.

They’re taking on risk and they know you’re in a tough spot with limited options.

Be ready to talk about price adjustments and contingencies based on the lawsuit’s outcome. You should also prepare for who will pay the legal fees and what will happen if the lis pendens is not resolved by closing.

They’ll probably want you to put money in escrow to cover potential damages or get a price reduction equal to their risk.

Stay flexible but know your bottom line, which is the number below which you’d rather just keep the property and deal with the lawsuit yourself.

Don’t let desperation make you agree to terms that screw you over completely.

Step 9: Work with a Title Company Experienced in Lis Issues

Not every title company knows how to handle a sale with a lis pendens attached. The last thing you need is someone learning on the job with your deal.

Find one that’s dealt with this before and knows how to structure the closing to protect everyone involved. They’ll help you deal with the paperwork and figure out how to transfer ownership without creating more legal problems down the road. They may even suggest creative solutions you hadn’t thought of.

Ask them upfront if they’ve closed deals with a lis pendens before and how many. If they hesitate or seem uncertain, find someone else.

This is too important to trust to someone who’s winging it.

Step 10: Prepare for a Longer Sales Process

A normal warehouse sale might take a few months from listing to closing. With a lis pendens, you’re looking at a way longer wait.

It may take six months, maybe a year, depending on how complicated the lawsuit is and how picky buyers get during due diligence.

Buyers need more time to review the legal stuff and attorneys have to go back and forth. There might be delays if the lawsuit takes unexpected turns or if settlement negotiations stall out.

Just accept that this isn’t going to be quick and plan accordingly. Keep paying your property expenses. Stay in touch with your attorney about the lawsuit and don’t freak out when the sale takes twice as long as you hoped.

It’s frustrating, but it’s just how these deals go.

Options for Removing Lis Pendens from Your Property

Getting that lis pendens off your property title is the fastest way to make your warehouse sellable again. There are a few ways to make it happen.

Resolving the Underlying Lawsuit

The easiest way to get rid of a lis pendens is to just end the lawsuit that caused it in the first place.

If you win the case, the court will order the lis pendens removed and you’re free to sell without any legal baggage hanging over you.

If you lose, well, you might not own the warehouse anymore, depending on what the lawsuit was about, so that’s a whole different problem.

The downside is that lawsuits take forever. It takes months. It’s all based on how complicated things get and how backed up the courts are.

If you’re trying to sell quickly, waiting for a trial verdict isn’t one of your options.

Filing a Motion to Expunge

If you think the lis pendens was filed improperly or the plaintiff doesn’t actually have a valid claim, you can ask the court to expunge it.

Your attorney can file a motion arguing that the lis pendens doesn’t meet the requirements of Texas law or that the underlying lawsuit lacks merit.

The court holds a hearing and both sides present their arguments. The judge decides whether to remove the notice.

This is effective if the plaintiff filed the notice just to harass you or if they screwed up the legal requirements when they filed it. But if their claim is legitimate, even if you think it’s weak, the court probably won’t expunge the lis pendens until the lawsuit actually gets resolved.

Negotiating a Settlement

Settling the lawsuit is usually your best bet if you want to sell anytime soon. Sit down with the plaintiff and figure out what they actually want.

See if you can work out a deal that gets them off your back and removes the lis pendens.

They probably want money or part of the property. It’s also possible they just want you to honor some agreement you backed out of.

Once you reach a settlement agreement and put it in writing, part of that deal should include them filing a release of the lis pendens with the county clerk.

Yes, you might have to pay them something or give up something you didn’t want to give up, but sometimes that’s worth it just to move on.

Settlements are faster than trials and cheaper than dragging out litigation for years. They give you control over the outcome instead of leaving it up to a judge.

How Long Does a Lis Pendens Last in Texas?

A lis pendens in Texas stays on your property records until the lawsuit is resolved or someone takes steps to remove it. There’s no automatic expiration date.

If the lawsuit drags on for five years, the lis pendens remains in place for five years. The notice doesn’t just disappear on its own after a certain amount of time passes.

Texas law doesn’t put a time limit on how long a lis pendens can remain active. This is difficult if you’re the property owner trying to sell.

Some states require plaintiffs to renew the lis pendens every year or every two years, but Texas isn’t one of them.

Once it’s filed, it’s there until someone takes action to get rid of it. That means the timeline depends entirely on how quickly the lawsuit moves through the court system.

The only way to speed things up is to push for a quick resolution of the lawsuit itself.

Talk to your attorney about fast-tracking the case and pursuing a settlement aggressively. You can also file a motion to expunge if you’ve got grounds for it.

Don’t just sit back and wait for the courts to move at their usual glacial pace. The sooner you address the underlying legal issue, the sooner the lis pendens will be removed. Then, you can actually sell your warehouse for a reasonable price.

Lis Pendens vs. Other Property Liens

Type	What It Is	How It Affects Sales	How to Remove It
Lis Pendens	Public notice of a pending lawsuit involving the property	Scares away traditional buyers and lenders, but doesn’t legally prevent the sale	Resolve the lawsuit, get a court order to expunge it, or negotiate a settlement
Tax Lien	Government claims for unpaid property taxes	Must be paid off at closing, or the sale can’t happen	Pay the taxes owed, plus penalties and interest
Mortgage Lien	Lender’s security interest in the property	Gets paid off from the sale proceeds at closing	Pay off the loan balance when you sell
Mechanic’s Lien	Contractor or supplier claim for unpaid work	Must be resolved before a clear title can transfer	Pay the debt, negotiate a settlement, or dispute it in court
Judgment Lien	Court-ordered claim from a lawsuit you lost	Attaches to the property and must be satisfied at closing	Pay the judgment amount or negotiate a settlement with the creditor
HOA Lien	Homeowners’ association claims for unpaid dues or fees	Must be paid before the property can be sold	Pay the outstanding fees and any penalties

Cash Buyers as an Alternative for Warehouse Sales with Lis Pendens

Cash buyers are really your best option when you’ve got a lis pendens on your warehouse and you actually want to sell sometime this decade. Here’s why they work when traditional buyers won’t:

• They don’t need bank financing, so the lis pendens doesn’t kill the deal like it would with a regular buyer.
• They’ve dealt with legal complications before and know how to deal with lawsuits and title issues.
• They can close fast, sometimes in a couple of weeks instead of dragging it out for months.
• They buy properties as-is, so you don’t have to worry about repairs or inspections on top of everything else.

If you need to move on with your life and cut your losses, sell to a cash buyer. It’s fast and it gets that warehouse off your hands so you can stop stressing about it every single day.

Key Takeaways: How to Sell a Warehouse with Lis Pendens in Texas (2026 Guide)

Selling a warehouse with a lis pendens sucks, but it’s not impossible. You just need to accept that traditional buyers aren’t going to touch it and your property value is going to take a hit. The whole process is also going to take way longer than a normal sale.

Be super honest with potential buyers about the lawsuit. Then, either settle the case fast or find a cash buyer who knows how to handle these situations. 

If you’re over the stress and ready to sell now, better to work with a company that buys warehouses for cash regardless of legal complications. Commercial Property Offer specializes in purchasing commercial real estate in situations exactly like yours. Call us at (855) 806-3337 to discuss your options and get a no-obligation offer on your warehouse today. better to work with a company that buys warehouses for cash regardless of legal complications. Learn more about how Commercial Property Offer buys warehouses.