Escrow & Title
A 'lis pendens' may affect a Florida real estate transaction by:
AReducing the property's market value permanently
BWarning potential buyers of pending litigation that could affect title, potentially making the property unsaleable without resolving the litigation✓ Correct
CAutomatically voiding any pending sales contract
DRequiring the seller to make repairs before closing
Explanation
A lis pendens clouds the title and warns buyers and lenders that litigation is pending that could affect ownership rights. Most lenders will not close on a property with an active lis pendens. It typically must be resolved before a clean title can be conveyed.
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