What happens when a Certificate of Pending Litigation (CPL) is filed after a Form A transfer?

When a Certificate of Pending Litigation (CPL) is filed after a Form A transfer, it indicates that there is a pending legal dispute related to the property in question. In this scenario, the correct understanding is that the prior applicant may continue to assert their claims if they are engaged in litigation. The filing of the CPL does not automatically negate their rights but rather serves to alert interested parties about the ongoing legal proceedings that could affect the property.

The concept behind this is that the CPL acts as a warning or notice to potential purchasers or lenders that there is a legal dispute affecting the property. In essence, while the prior applicant may have transferred the title through a Form A transfer, their rights and claims over the property remain potentially intact, provided they are actively involved in litigation related to those claims. Therefore, claiming a right based on ongoing litigation aligns with how CPLs function within real estate law, ensuring that parties are aware of potential encumbrances on the property due to unresolved disputes.