Which of the following describes 'Lis pendens'?

The correct choice describes 'lis pendens' as a public notice of a pending court suit. This term originates from Latin, meaning "suit pending." When a lis pendens is filed, it serves as a formal indication that there is a lawsuit related to a specific property. This notice is typically aimed at alerting potential buyers or lenders about the existing legal dispute so they are aware that the property may be subject to judicial decisions. As a result, it can affect the marketability of the property, as it raises a red flag regarding ownership and rights to the property until the litigation is resolved.

The other options do not accurately reflect the nature of 'lis pendens'. It is not an insurance claim, a process for transferring property, or a written agreement regarding property improvements. Thus, understanding 'lis pendens' as a public notice allows individuals to recognize the potential legal complications surrounding a piece of property effectively.