Escrow & Title

A Virginia title search discovers a recorded lis pendens against the seller related to a pending divorce proceeding. This creates a cloud on title because:

ADivorce proceedings always invalidate real estate sales
BThe lawsuit could result in a court judgment affecting the property's ownership or distribution✓ Correct
CThe circuit court automatically freezes all real estate sales
DVREB suspends all transactions during divorce

Explanation

A lis pendens in a divorce proceeding puts prospective buyers on notice that ownership or distribution of the property may be adjudicated by the court. The title must be cleared of this cloud before conveying marketable title.

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