What is the legal term for a pending lawsuit or a court's power over property during legal action?

The legal term for a pending lawsuit or a court's power over property during legal action is "Lis Pendens." This term refers to a notice that is filed with the court to inform potential purchasers or lenders that a lawsuit has been initiated concerning the property in question. The purpose of a lis pendens is to establish a public record that there is a legal dispute involving the property, thereby alerting interested parties that any dealings with the property could be affected by the outcome of the lawsuit.

Lis pendens serves a critical role in ensuring that the rights of all parties involved in the lawsuit are preserved. It acts as a legal warning, allowing potential buyers or financiers to be aware that the property is under litigation, which could affect their interests. This mechanism can be particularly important in real estate transactions, where due diligence often involves checking for any notices or pending litigation that might cloud the title or affect ownership.

In contrast, assignments involve the transfer of rights or interests without transferring ownership of the property; foreclosure refers specifically to the process by which a lender reclaims property after the borrower defaults on a loan, and bankruptcy relates to a legal proceeding involving a person or business that is unable to repay outstanding debts. These terms do not encapsulate the idea of a pending lawsuit