What is the function of a Notice of Pendency?

What is the function of a Notice of Pendency?

• A. Gives record notice to potential buyers that real property is subject to an equity action
• B. Reserves the property from sale
• C. Awards damages to the plaintiff
• D. Transfers title

Answer: (A)

A Notice of Pendency (lis pendens) functions as a record notice in the land records that there is a pending lawsuit affecting the title to real property. Its purpose is to warn prospective buyers and lenders that the property’s title could be impacted by the outcome of the litigation, so any transfer occurs with knowledge of the dispute. This helps protect the plaintiff’s interest by ensuring future transactions don’t proceed without acknowledging the potential claim against the property and the resulting cloud on title. It does not itself reserve the property from sale, award damages, or transfer title; those outcomes come from court actions or judgments.

A Notice of Pendency (lis pendens) functions as a record notice in the land records that there is a pending lawsuit affecting the title to real property. Its purpose is to warn prospective buyers and lenders that the property’s title could be impacted by the outcome of the litigation, so any transfer occurs with knowledge of the dispute. This helps protect the plaintiff’s interest by ensuring future transactions don’t proceed without acknowledging the potential claim against the property and the resulting cloud on title. It does not itself reserve the property from sale, award damages, or transfer title; those outcomes come from court actions or judgments.