What is a lis pendens and how does it affect property?

A lis pendens, Latin for "pending litigation," is a recorded notice that a lawsuit has been filed involving title to or an interest in a specific property. It warns potential buyers and lenders that the property is subject to a legal dispute that could affect ownership. A lis pendens does not prevent the sale of property but makes it practically unsaleable because title companies will not insure title and lenders will not approve mortgages while the notice is in place. It is removed when the lawsuit is resolved, dismissed, or when a court orders its release.