What does a lis pendens signify in real estate?

A lis pendens signifies a pending legal action related to a property. When a lis pendens is filed, it serves as a public notice that there is a legal dispute involving the property, which may affect the title or ownership. This notice alerts potential buyers or lenders that the property is subject to litigation, and they may want to proceed with caution.

This is important in real estate transactions because it can affect the marketability of the property. If a buyer is considering purchasing a property with a lis pendens filed against it, they must understand that they may be assuming some risk associated with the pending legal action. The outcome of the litigation could impact their ownership rights or obligations tied to the property.