Recently on "Real Estate 101" Host Mary Gill spoke with Attorney Althea DeBar-Johnson about lis pendens filings and Georgia’s intestate succession rules.
Lis pendens acts as a public warning that a lawsuit could alter a property’s ownership. Attorney Johnson said it notifies buyers, lenders and closing attorneys of pending claims, from unpaid debts to contract breaches. She noted that while some attorneys might overlook it, title insurers almost never do.
Ms. Gil explained her tactic when sellers default and try to sell without paying commissions. “So what I do is I go immediately and file in magistrate’s court, a small claims action against that person for defaulting on the contract,” Ms. Gill said. She then records the lis pendens against the property, tying it to the court case. The notice blocks most transfers because title insurance companies refuse coverage until the dispute is settled, shielding them from liability for hidden encumbrances.
Attorney Johnson added that the filing forces resolution in court and cannot be ignored without risking the insurer’s financial exposure. Ms. Gill stressed that lis pendens requires an active lawsuit and must be removed once the matter is closed, a step that demands precise legal handling.
They then turned to intestate succession, the default rules when someone dies without a will. Attorney Johnson laid out Georgia’s order: a surviving spouse takes the first share, but any children split the rest equally with the spouse. “Understand you as the surviving spouse, do not take it all when there’s no will,” Attorney Johnson said. If no children survive, the estate flows to grandchildren, then parents, siblings, nieces, nephews or cousins. If no relatives surface, the property escheats to the state.
Ms. Gill highlighted the hidden costs of inaction. Homestead tax exemptions vanish at death, triggering retroactive reassessments that pile on thousands in back taxes. Attorney Johnson warned that executors who stall face contempt for breaching fiduciary duty, while the estate’s value erodes.
Both hammered home the dangers of DIY approaches. Filing lis pendens without counsel can backfire if the underlying claim fails or the notice is improperly drafted. Probate without guidance risks missed deadlines and lost assets.