What does 'lis pendens' refer to in legal terms?

The term 'lis pendens' refers specifically to a notice that indicates there is a pending lawsuit concerning a particular property. This legal term serves to alert potential buyers or interested parties that the property is subject to a dispute, thus affecting their ability to obtain clear title to the property. By filing a lis pendens, the party involved in the litigation ensures that anyone considering a real estate transaction involving the property is made aware of the ongoing legal proceedings.

This notification is crucial because it protects the rights of the party who has filed the litigation, essentially placing the public on notice that the outcome of the court case may impact the property in question. It serves as a legal mechanism to prevent the sale or transfer of the property until the dispute is resolved. The significance of this concept is particularly relevant in real estate transactions, as it can influence buyers’ decisions and lenders' willingness to provide financing for properties that may be encumbered by such legal claims.