Escrow & Title
What is a 'lis pendens' and how does it affect a Delaware property sale?
AA document confirming title is clear to proceed with sale
BA notice of pending litigation recorded in the public records that alerts potential buyers and lenders that the property's title is subject to an unresolved lawsuit✓ Correct
CA legal action to recover possession of property
DA court order preventing the immediate sale of a property
Explanation
A lis pendens clouds title, creating a significant impediment to sale because any buyer takes subject to the outcome of the pending litigation. Most buyers and lenders will not close a transaction with an active lis pendens on title.
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Key Terms to Know
Abstract of Title
A condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
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