Escrow & Title
A lis pendens recorded against a North Carolina property provides:
ANotice that a lawsuit affecting the property is pending✓ Correct
BProof of clear title
CEvidence of payment
DA priority lien for the recording party
Explanation
A lis pendens ('suit pending') is a recorded notice that litigation is pending that may affect title to the property, warning prospective buyers of the pending legal action.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
Math Concepts
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