What does the term "lis pendens" refer to?

The term "lis pendens" refers to a legal notice that indicates a lawsuit has been filed concerning a particular property. This notice serves as an advance warning to potential buyers or lenders that the property is subject to litigation, which could affect their interests or ownership rights in the property. By recording a lis pendens, the party bringing the lawsuit puts the world on notice that the outcome of the case may affect the title or right to the property, potentially clouding the property’s title.

This legal mechanism is essential for protecting the interests of those involved in the lawsuit, as it informs others that they may be brought into the legal proceedings if they decide to engage with the property. In real estate transactions, understanding the presence of a lis pendens is crucial for making informed decisions about purchasing or lending against a property.

The other options listed do not accurately describe a lis pendens. A legal agreement encompasses a broader category of contracts, a title deed refers to a document that shows ownership of a property, and a property tax notice is related to the assessment and collection of property taxes. Thus, the choice that accurately reflects the meaning of "lis pendens" as an advance notice of a lawsuit is the correct understanding of the term.