Contracts
What is 'lis pendens' and how can it affect a Rhode Island real estate transaction?
AA final judgment in a property dispute
BA notice of pending litigation affecting the property's title; it clouds title and makes it difficult to sell or mortgage the property until resolved✓ Correct
CA search of the property for pending permits
DA notice of foreclosure filed by the lender
Explanation
A lis pendens is a recorded notice that a lawsuit affecting title to a property is pending. It effectively clouds title, warns prospective buyers, and makes it very difficult to sell or refinance the property while the litigation is ongoing.
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Key Terms to Know
Short Sale
A sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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