Contracts

A NJ seller who successfully closes a sale in violation of a court injunction prohibiting the sale:

AHas completed a valid transfer
BMay be in contempt of court and the sale may be voidable; the injunction served as constructive notice✓ Correct
CIs entitled to keep the proceeds
DHas no legal exposure if the buyer was unaware

Explanation

A recorded lis pendens or injunction provides constructive notice to the world. A sale in violation of such an order may be voidable or subject to reversal, and the seller may face contempt of court sanctions.

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