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Greenpoint Mortgage Funding, Inc., et al. v. Roger Schlossberg, Receiver World Savings Bank, et al. v. Roger Schlossberg, Receiver No. 144, September Term, 2004 Headnote: A receiver's attempt to file a notice of lis pendens, arising from a divorce action, which was indexed under the name of the wife, instead of the name of the husband, who held title to the affected properties, did not provide notice to lenders who searched title under the property owner's name.
The doctrine of lis pendens is not applicable in divorce cases unless the trial judge specifically orders that it be applicable.

Additionally, because the person who seeks to establish the notice of lis pendens has the ability to assure the correctness of the notice's filing, recording and indexing, that party is charged to verify the correctness of the indexing. Instruments affecting title to real property are, by statute, required to be both recorded and indexed.

Circuit Co urt for W ashington C ounty Case # 21-C-02-14968-DJ

IN THE COURT OF APPEALS OF MARYLAND No. 144 September Term, 2004

Greenpoint Mortgage Funding, Inc., et al. v. Roger Schlossberg, Receiver *************** World Savings Bank, et al. v. Roger Schlossberg, Receiver

Bell, C. J. Raker Wilner Cathell Harrell Battaglia Greene, JJ.

Opinion by Cathell, J. Bell, C.J., Wilner and Greene, JJ. dissent

Filed: December 15, 2005

In this consolidated appeal, Greenpoint Mortgage Funding, Inc., et al. and World Savings Bank, et al. (described variably hereafter collectively as "appellants" or "lenders") seek relief from the May 24, 2004, Memorandum Opinions and Orders of the Circuit Court for Washington County, which provided that the notices of lis pendens, filed by Preston S. Cecil and Curtis B. Hane as former receivers, along with Roger Schlossberg, current receiver and appellee, (hereafter "appellee," "Mr. Schlossberg" or "receiver"), with the Clerk of the Circuit Court for Montgomery County, and with the Clerk of the Circuit Court for Prince George's County, but not indexed correctly, served as sufficient constructive notice to appellants of a pendente lite lien against certain property. Both Greenpoint and World Savings appealed to the Court of Special Appeals and, before that court could consider the appeal, we granted on our own initiative a writ of certiorari on March 11, 2005, Greenpoint Mortgage Funding, Inc. v. Schlossberg , 385 Md. 511, 869 A.2d 864 (2005), in order to address the following questions: "I. Did the Circuit Court err by holding that the filing of the notices of lis pendens on behalf of the original receivers pursuant to Rule 12-102 (b), Maryland Rules of Procedure, was sufficient to place the two mortgage lenders on constructive notice of the receivers' powers over the two parcels of real property? Did the failure to properly index the notices of lis pendens in the name of the owner of the properties negate the effect of filing the notices of lis pendens as to the appellants [Greenpoint Mortgage and World Savings Bank, the lenders]?"

II.

We hold in respect to question one that the trial court erred. We answer the second question in the affirmative. Even if a lis pendens had been properly created by the express

order of the judge in the underlying divorce case,1 we hold that the failure to properly index the notices negated the effect of the filing as to the appellants. We further hold that Maryland statutes require that all instruments affecting title to real property that are recorded, must also be indexed. And we hold that a party seeking to establish a notice of lis pendens is charged with the duty to assure the correctness of the recording and indexing of the instrument he or she has filed. Failing correct indexing, the notice of lis pendens in the instant case was, or would have been, insufficient to provide constructive notice to appellants. I. Facts In 1996, the Circuit Court for Washington County determined it prudent to appoint receivers in the pending divorce case of Moses Karkenny v. Nahil Karkenny.2 By court order dated March 26, 1996, and clarified by order dated April 9, 1996, Curtis B. Hane and Preston S. Cecil were appointed receivers, and their counsel, Roger Schlossberg, was Family Law Article, Title 1, Subtitle 2. General Provisions,

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Maryland Law