Contracts
A lis pendens recorded against a property would appear in a title search and would alert a potential buyer that:
AThe property has been recently sold
BThere is pending litigation that could affect the title✓ Correct
CThe property has code violations
DThe seller is in default on the mortgage
Explanation
A lis pendens is recorded notice of pending litigation affecting the property. A buyer who purchases after a lis pendens is recorded takes the property subject to the outcome of that litigation.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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