Escrow & Title
In Colorado, a property owner seeking to sell a property with a lis pendens on title should first:
AProceed with the sale without disclosing the lis pendens
BDisclose the lis pendens to prospective buyers and resolve the underlying litigation before closing✓ Correct
CDemand the buyer purchase the property as-is with the lis pendens
DAsk the broker to handle the disclosure
Explanation
A lis pendens clouds title and would prevent a title company from insuring clear title. The seller must disclose the existence of the lis pendens to prospective buyers and typically must resolve the underlying litigation before the property can be sold with insurable title.
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