What does “lis pendens” signify in real estate?

“Lis pendens” is a Latin term that translates to "suit pending." In the context of real estate, it serves as a legal notice that a lawsuit has been filed concerning a particular property. This notice alerts any potential buyers or parties interested in the property that there is an ongoing legal claim that may affect the ownership or rights associated with that property.

When a lis pendens is filed, it creates a cloud on the title, meaning that anyone looking to purchase the property would be doing so with the knowledge that there are potential legal issues that could affect their ownership. This legal document does not determine the outcome of the lawsuit but rather ensures that all parties are aware of it and that any judgment rendered can be enforced against anyone who acquires the property while the case is pending.

In contrast, the other options relate to different aspects of real estate transactions. A property title transfer involves the actual change of ownership of the property, while an agreement for property sale details the terms and conditions under which a property is to be sold, and a declaration of property ownership simply asserts a person’s claim to ownership. None of these concepts encompass the legal implications and notifications associated with pending litigation, which is the core function of a lis pendens.