Title Clouding & How To Avoid It

Time and time again, I've told you how using a Series LLC can protect you and your assets. Today, I'm going to tell you another way you can protect your assets. If you're a real estate investor, you definitely want to pay attention. Get ready to learn about title clouding.

Lis Pendens (latin for "suit pending") much like the name of your high school's prom queen, sounds nice. But it can screw you over if you're not ready for it. A Lis Pendens may be filed against your property if it's involved in a lawsuit.  If someone does file a Lis Pendens against your property, you won't be able to sell it. Not until your "legal problems" resolve themselves anyway. In the field of asset protection, we call this  "title clouding".

Why Should I Care About Title Clouding?

Title clouding is just another tactic enemy legal council will use to put pressure on you to cave in to their demands. It's a strategy favored by lawyers with costly, unreasonable demands. Think about how much money you can lose if you're not able to sell a home you bought just to flip in a short amount of time. What if you need cash and want to liquidate an asset? Title clouding can and will screw you over.

Lawsuits can take years to resolve. All the while, you have to hold on to your asset. At any time one of your properties can get hit with a Lis Pendens and force you to deal with the title clouding that comes with it. Technically, you can still sell your property while it's dealing with title clouding. But who is going to want to buy it when it's the subject of a lawsuit? Think about that question from the perspective of a real estate investor.

If your property does get hit with a Lis Pendens and you end up winning the lawsuit, you can sue whoever filed it for the monetary losses you took as a result of title clouding. And that's where I come in.

My name is Scott Smith. I'm an asset protection attorney based in Austin, Texas with clients all over North America. I'm here to help protect you and your assets from lawsuits.

Call now or schedule your consultation today. Whether you're dealing with title clouding, trying to avoid it, or just need to cover your assets, I'm here to help.

Last Updated: 
August 12, 2017

Scott Royal Smith is an asset protection attorney and long-time real estate investor. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth.

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