Property Ownership

In Oregon, what is the effect of a 'lis pendens' being recorded after a buyer has signed a purchase agreement but before closing?

AThe transaction must close immediately
BThe buyer takes notice of the pending litigation and assumes the risk; the purchase may proceed but the buyer takes subject to the lis pendens outcome✓ Correct
CThe purchase agreement is automatically void
DThe title company automatically resolves the lis pendens

Explanation

A lis pendens recorded after a purchase agreement is signed but before closing provides constructive notice to all subsequent parties. If the buyer proceeds to close, they take title subject to the outcome of the pending litigation.

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