What does the term 'lis pendens' refer to?

'Lis pendens' is a legal term that translates to "suit pending." It specifically refers to a notice that is filed in public records, indicating that there is a lawsuit pending that affects the title or ownership of a particular piece of property. This notice serves to inform potential buyers or interested parties that the property's title may be subject to change due to the ongoing legal proceedings. As a result, anyone considering purchasing or otherwise dealing with the property is put on notice that their interest could be impacted by the outcome of the lawsuit.

In this context, having a 'lis pendens' filed can lead to complications in transferring the title or obtaining financing, as the pending litigation raises uncertainty around ownership claims and rights. Understanding what 'lis pendens' signifies is crucial for real estate professionals, as it affects due diligence and risk assessment when dealing with property transactions.