Judgments institute liens on a property; what is the effect?

Judgments institute liens on a property; what is the effect?

• A. They transfer title
• B. They cancel prior liens
• C. They institute a lien on the property
• D. They waive property taxes

Answer: (C)

A judgment creates a lien on the property. When a court issues a judgment against a property owner and it’s docketed in the county where the real estate sits, that judgment becomes a lien against the debtor’s real property in that county. It serves as a security interest to satisfy the debt and stays attached to the property until the debt is paid or the lien is released. This does not transfer ownership to the creditor, nor does it automatically cancel other liens or waive property taxes. In practice, the lien can cloud title and must be satisfied or released for a clean title to transfer.

A judgment creates a lien on the property. When a court issues a judgment against a property owner and it’s docketed in the county where the real estate sits, that judgment becomes a lien against the debtor’s real property in that county. It serves as a security interest to satisfy the debt and stays attached to the property until the debt is paid or the lien is released. This does not transfer ownership to the creditor, nor does it automatically cancel other liens or waive property taxes. In practice, the lien can cloud title and must be satisfied or released for a clean title to transfer.