Escrow & Title

In Alaska, a 'notice of lis pendens' affects a real estate transaction by:

ACompleting the sale immediately
BWarning potential buyers that the property is subject to pending litigation that may affect title✓ Correct
CTemporarily freezing all transactions until the lawsuit is resolved
DOnly affecting the property's assessed value for tax purposes

Explanation

A notice of lis pendens recorded against a property warns the public — including potential buyers, lenders, and title insurers — that pending litigation affecting title to the property is in progress. Anyone acquiring an interest after the lis pendens is recorded takes subject to the outcome of the litigation.

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