What does a lis pendens signify in real estate?

A lis pendens signifies a pending action that affects the title of a property. It serves as a public notice that there is a legal dispute involving the property, such as a lawsuit that could impact ownership rights or claims to the property. This notice ensures that any parties interested in the property, whether they are potential buyers or lenders, are aware that the outcome of the litigation could significantly affect their interests.

By filing a lis pendens, the party initiating the lawsuit effectively informs the public that the property is subject to legal proceedings, which may render any transfer of title questionable or subject to the outcome of the litigation. This mechanism is important because it protects the rights of the parties involved in the lawsuit and helps maintain the status quo regarding the property during the legal proceedings.