Glossary

Judgment Lien

A lien created when a court judgment against a property owner is recorded in the county where the owner's real property is located, attaching to that property as security for the judgment debt.

Unlike a mortgage, a judgment lien arises involuntarily from litigation rather than from an agreement, and once recorded it typically attaches to all real property the judgment debtor owns in that jurisdiction, not just one specific parcel. Judgment liens are a routine finding in a title search and must be paid, bonded off, or otherwise resolved before a lender will close a new mortgage or a buyer will accept clear title, since an unresolved judgment lien can survive a sale and cloud the new owner's title depending on state law and lien priority. Sponsors with pending or recent litigation are typically asked in loan applications and guarantor financial statements to disclose any judgments, since an undisclosed judgment lien discovered during title search can delay or derail a closing.