Illinois Real Estate Practice Exam

What is the term for a recorded notice of an ongoing lawsuit affecting the title to real property?

1. A. Action for Title

2. B. Encumbrance Notice

3. C. Title Claim Record

4. D. Lis Pendens

The correct answer is: D. Lis Pendens

The term for a recorded notice of an ongoing lawsuit affecting the title to real property is indeed “Lis Pendens.” This Latin phrase translates to "a suit pending," and it serves as a warning to potential buyers or lenders that there is a legal dispute underway involving the property in question. By recording a lis pendens, the party involved in the lawsuit puts others on notice that their claims or legal actions could impact the ownership or value of the property. This is essential for protecting legal interests and ensuring that parties are aware of possible encumbrances before making decisions about the property. The other terms do not serve the same purpose. For example, an action for title refers to a specific legal proceeding to establish ownership rather than a notice about ongoing litigation. Encumbrance notice typically refers to issues like liens but is not specifically about litigation. Title claim record is not a commonly recognized or used term in this context. Thus, lis pendens is the appropriate term that accurately describes the situation presented in the question.