Escrow & Title
A lis pendens recorded against a New Mexico property notifies potential buyers that:
AThe property is under a tax lien
BThere is pending litigation affecting the property's title✓ Correct
CThe seller has declared bankruptcy
DThe property has failed inspection
Explanation
A lis pendens ('pending lawsuit') is a recorded notice that a lawsuit is pending that may affect title to the property. It warns buyers of potential title issues arising from the litigation.
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