Judgment Lien
A lien placed against a debtor's property as a result of a court judgment. Recording an abstract of judgment creates a lien against all real property owned by the debtor in that county.
Understanding Judgment Lien
When a creditor wins a lawsuit and obtains a money judgment, they can convert that judgment into a lien against the debtor's real property. This is done by recording an 'abstract of judgment' in the county where the debtor owns property. The lien attaches to all real property the debtor owns (or later acquires) in that county.
Judgment liens are 'general' liens affecting all of a debtor's property in the county, unlike 'specific' liens (like mortgages) that attach only to particular property. A debtor with multiple properties might have judgment liens against all of them from a single judgment.
Judgment liens have a lifespan—they expire if not renewed or collected within statutory time limits. They also have priority based on recording date. Multiple judgment liens are satisfied in order of their recording dates.
For curative title investors, judgment liens against prior owners are common title defects. Determining whether the lien is still valid (not expired), whether it was satisfied, and whether the creditor can be located are key parts of due diligence. Old judgment liens from defunct creditors often require quiet title action to clear.
Real-World Example
A contractor obtains a $25,000 judgment against a homeowner for unpaid work. The contractor records an abstract of judgment in the county records. When the homeowner later tries to refinance, the title search reveals the lien. The homeowner must pay the judgment to clear title and complete the refinance.
Texas-Specific Information
Texas judgment liens are created by recording an abstract of judgment with the county clerk (Texas Property Code Section 52.001). The lien is valid for 10 years and can be renewed for additional 10-year periods. Texas judgment liens are subordinate to properly recorded homestead exemptions—they don't attach to homestead property.
Related Terms
Lien
A legal claim against property as security for a debt or obligation. Liens give creditors the right to have the property sold to satisfy the debt if the owner doesn't pay. Common liens include mortgages, tax liens, and judgment liens.
Clouded Title
A title with unresolved claims, liens, or defects that cast doubt on the true ownership of property. Clouded titles prevent sales, refinancing, and title insurance until the issues are resolved.
Deficiency Judgment
A court judgment against a borrower for the difference between the debt owed and the foreclosure sale price when the sale proceeds don't fully satisfy the loan. The lender can pursue the borrower personally for this remaining balance.
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