Property Ownership

In Michigan, a 'lis pendens' (notice of pending litigation) is effective because it:

APrevents the property owner from selling the property
BProvides constructive notice to potential buyers of pending litigation affecting the property, making a purchase risky✓ Correct
CAutomatically transfers ownership to the litigation winner
DCreates a lien equal to the amount in dispute

Explanation

A lis pendens does not prohibit sale but provides constructive notice that litigation affecting the property is pending. A buyer who purchases after the lis pendens is recorded takes the property subject to the outcome of the litigation.

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