Georgia Real Estate Pre-Licensing Test 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 675

What legal notice serves to inform potential buyers or lien holders that a lawsuit affects a particular property?

Court order

Lis pendens

The term "lis pendens" refers to a legal notice that is filed in the public records to indicate that a lawsuit has been initiated concerning a specific piece of property. This notice serves as a warning to potential buyers or other parties with an interest in the property that there is an unresolved legal dispute affecting it.

When a lis pendens is recorded, it effectively informs all interested parties that any claim or title to the property may be impacted by the outcome of the litigation. This helps to protect the rights of the party initiating the lawsuit by preventing the property from being sold or transferred without acknowledging the pending legal issues.

The other options do not serve the same purpose as a lis pendens. A court order is a directive issued by a judge but does not specifically notify potential buyers or lien holders of a lawsuit. A property lien indicates that there is a claim against the property, usually for unpaid debts, but does not necessarily relate to a lawsuit's pending status. Equitable garnishment is related to the collection of debts rather than informing about ongoing litigation affecting property ownership. Thus, the proper legal instrument for notifying parties about a lawsuit affecting property is indeed the lis pendens.

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Property lien

Equitable garnishment

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