A pending lawsuit does not automatically prevent you from selling or transferring real estate in Texas. However, a court order or recorded litigation notice may affect a proposed transaction. Being legally permitted to transfer property is not necessarily the same as being able to complete a closing. 

For property owners and investors, identifying these issues early matters when financing, contractual deadlines, or sale proceeds are at stake.

Can You Sell Property While a Lawsuit Is Pending in Texas?

In some circumstances, yes. A lawsuit alone does not establish a general prohibition against selling real estate. However, the analysis changes when the dispute concerns ownership, a disputed transfer, or another party's claimed right to acquire the property. 

For example, a buyer involved in a real estate breach of contract dispute may seek to enforce a purchase agreement when the seller refuses to complete the transaction. 

Depending on the circumstances, the buyer may pursue specific performance, a legal remedy that can require a party to fulfill its contractual obligations. The buyer may also ask the court to prevent the seller from transferring the property to someone else while the dispute remains unresolved. 

Before proceeding with a sale, the property owner should review the pending claims, recorded notices, and any applicable court orders.

Can a Court Issue an Injunction to Prevent a Property Sale?

Yes. In an appropriate case, a Texas court may issue a temporary restraining order or temporary injunction restricting a sale, transfer, or other specified action involving the property. 

These orders are not automatic and have different procedural requirements. To obtain a temporary injunction, an applicant generally must establish a cause of action, a probable right to relief, and a probable, imminent, and irreparable injury before trial. 

A temporary injunction is intended to preserve the status quo while litigation proceeds. It does not finally decide the underlying dispute. 

An order's effect depends on its language. If a court order may restrict a proposed property transaction, an attorney should review its terms before any action is taken. 

Does a Lis Pendens Prevent a Property Sale?

A lis pendens is a recorded notice of qualifying litigation involving real property. 

Under Texas Property Code § 12.007, a lis pendens may be filed in certain lawsuits involving property title, the establishment of an interest in real property, or enforcement of an encumbrance. Not every lawsuit involving a property owner qualifies. 

A lis pendens does not itself prohibit a transfer or determine who owns the property. However, it provides notice of the pending dispute, which may create concerns for buyers, lenders, and title companies. As a result, a transaction may face obstacles even when no injunction has been issued. 

In certain circumstances, the recorded notice may be challenged. Texas Property Code § 12.0071 requires a court to order expunction when specified statutory grounds are established, including: