Escrow & Title

In Colorado, what is a 'lis pendens' and how does it affect a real estate transaction?

AA notice of pending litigation that clouds title and puts buyers on notice of a legal dispute✓ Correct
BA lender's notice of a pending foreclosure sale
CA government notice of pending condemnation
DA broker's notice of a pending commission dispute

Explanation

A lis pendens (Latin for 'pending lawsuit') is a recorded notice that a lawsuit has been filed affecting the property's title. It clouds title and puts prospective buyers on constructive notice that the title may be subject to the outcome of litigation.

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