Finance

A 'lis pendens' filed in connection with a New York foreclosure action provides which of the following?

ANotice to the world that litigation affecting title to the property is pending✓ Correct
BA lien on the property superior to all other liens
CPermission for the lender to immediately take possession of the property
DA court order requiring the borrower to vacate

Explanation

A lis pendens (Latin for 'pending litigation') is a notice filed in the county clerk's office that informs any subsequent purchaser or encumbrancer that a lawsuit affecting the property's title is pending. In a foreclosure, it puts the world on notice so that any subsequent transfer of the property is subject to the outcome of the litigation.

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