Definition
A judgment lien is placed on the property when someone sues and wins a judgment against the owner. It must be paid off before the property can be sold.
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When someone sues and wins a judgment for unpaid debts, they can record a judgment lien against the defendant's property. This lien gives the judgment creditor a claim on the property that must be satisfied before sale. Judgment liens cloud title and typically appear on the title commitment. Sellers must clear judgment liens before closing, usually by paying the judgment amount or negotiating a settlement. Judgment liens can significantly complicate property sales.
Pro Tip
Check title searches carefully for judgment liens. They can prevent closing.
Example
A judgment lien from a lawsuit appeared on the title commitment and had to be paid at closing.