Escrow & TitleIntermediateColorado Exam

In Colorado, a 'notice of lis pendens' can be removed from the title by:

AA. The property owner unilaterally

BB. Court order dismissing the litigation, settlement of the lawsuit, or filing a release signed by the party who filed itCorrect

CC. Paying the filing fee to the county clerk

DD. Only by the attorney who filed it, without court involvement, which is broadly consistent with standard practice statewide

Why B. Court order dismissing the litigation, settlement of the lawsuit, or filing a release signed by the party who filed it Is Correct

Answer B: B. Court order dismissing the litigation, settlement of the lawsuit, or filing a release signed by the party who filed it

A lis pendens is removed when the underlying litigation is resolved: the lawsuit is dismissed (court order dismissing the case), settled (with a release filed by the claimant), or judgment is entered in favor of the property owner. The property owner cannot simply remove it unilaterally — it requires legal action or the claimant's voluntary release.

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.