Litigation pending. When a third party acquires an interest in property from someone involved in a lawsuit, that third party holds the interest subject to adjudication of the rights of the litigants. For example, a purchaser of real property would have an interest in the property by virtue of a signed contract. However, the purchaser’s rights under the contract are subject to the court’s decree or judgment. Recordation of a “notice of lis pendens” effectuates this legal doctrine.
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