Paralegal Advanced Competency Exam (PACE) Practice Exam

What does "lis pendens" refer to in legal terminology?

1. A document stating property values

2. A legal notice of pending litigation

3. A record of property ownership changes

4. A type of property agreement

The correct answer is: A legal notice of pending litigation

The term "lis pendens" is a Latin phrase that translates to "suit pending." It refers specifically to a legal notice that is filed in the public record to inform all interested parties that a property is involved in ongoing litigation. This notice serves as a warning to potential purchasers or lenders that the ownership or title of the property may be affected by the outcome of the lawsuit. By filing a lis pendens, a plaintiff effectively asserts a claim against the property, which can impact its marketability or value until the litigation is resolved. The other options do not accurately capture the essence of what "lis pendens" signifies in legal contexts. A document stating property values pertains to property assessments or appraisals, a record of property ownership changes refers to title transfers or deeds, and a type of property agreement would imply contracts like leases or sales agreements, none of which relate to the concept of pending litigation.