Escrow & TitleIntermediateArizona Exam

In Arizona, a lis pendens recorded on a property indicates:

AThe property has been condemned by the city
BThere is a pending lawsuit affecting the title to the propertyCorrect
CThe owner has filed for bankruptcy protection
DA mechanic's lien has been satisfied and released

Why There is a pending lawsuit affecting the title to the property Is Correct

Answer B: There is a pending lawsuit affecting the title to the property

A lis pendens ('suit pending') is a recorded notice that a lawsuit has been filed that may affect title to or an interest in the real property. It warns prospective buyers and lenders of the pending litigation.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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