Real Estate Council of Alberta Fundamentals Practice Exam

What does a certificate of Lis Pendens indicate?

1. Notice that litigation is in progress

2. Notification of lease expiration

3. Documentation for property sale

4. Agreement for property tax payment

The correct answer is: Notice that litigation is in progress

A certificate of Lis Pendens serves as a public notice indicating that there is pending litigation related to a property. It alerts potential buyers, lenders, and other interested parties that a legal claim has been filed affecting the property in question. The existence of such a certificate is crucial because it can impact the ability to transfer ownership or the value of the property, as the outcome of the litigation may determine rights over it. The other options do not accurately describe a certificate of Lis Pendens. Lease expirations, property sales documentation, and agreements regarding tax payments do not have any relevance to the pending legal actions that a Lis Pendens signifies. This is important for anyone involved in real estate, as understanding the implications of a certificate of Lis Pendens can be critical when evaluating property transactions or potential investments.