Contracts

In Montana, a 'lis pendens' notation on a real estate purchase agreement or title is significant because it:

AIndicates the property has been newly listed for sale
BWarns that there is a pending lawsuit that could affect the title or the transaction✓ Correct
CShows the property's most recent sale price
DIndicates the property has been assessed for tax purposes

Explanation

A lis pendens is notice of a pending lawsuit that may affect title. A buyer who purchases with knowledge of a recorded lis pendens takes the property subject to the outcome of that litigation.

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