Final answer:
A recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or a federal court is called a lis pendens. Lis pendens serves as a public notice to potential buyers or lenders that there is a legal dispute or claim against the property.
Step-by-step explanation:
A recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or a federal court is called a lis pendens. Lis pendens is a Latin term meaning 'pending litigation.' It serves as a public notice to potential buyers or lenders that there is a legal dispute or claim against the property.
For example, if a homeowner is involved in a lawsuit regarding ownership of their property, they can file a lis pendens to inform others that there is a legal action tied to the property. This helps protect the homeowner's rights and prevents new transactions from taking place until the legal matter is resolved.