Property OwnershipIntermediateCalifornia Exam

A 'lis pendens' recorded against a property provides notice that:

AThe property has been sold at a tax lien sale, consistent with common law property ownership principles
BA lawsuit is pending that may affect title to the propertyCorrect
CThe property is subject to an easement, per standard California real property conventions
DThe owner has declared bankruptcy, under standard California property ownership law

Why A lawsuit is pending that may affect title to the property Is Correct

Answer B: A lawsuit is pending that may affect title to the property

Lis pendens (Latin for 'suit pending') is a recorded notice that litigation is pending which could affect ownership or title to the real property. It warns potential buyers and lenders of the cloud on title.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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