What lien results from a court order to pay a creditor?

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Prepare for the Real Estate Ownership Exam with multiple choice questions, flashcards, and detailed explanations. Master land use controls and financing to excel on your test.

Multiple Choice

What lien results from a court order to pay a creditor?

Explanation:
A judgment lien is created when a court orders a debtor to pay a creditor. That court order is recorded as a lien against the debtor’s real estate in the county where the property is located, so the property cannot be sold or refinanced without addressing the lien. It stays in place for a set period and can be renewed until the judgment is satisfied. This is different from tax liens, which come from unpaid government taxes; mortgage liens, which arise from a loan the borrower used to buy the property; and HOA liens, which come from unpaid homeowners association dues. The key idea is that a judgment lien originates from a court order to pay a creditor.

A judgment lien is created when a court orders a debtor to pay a creditor. That court order is recorded as a lien against the debtor’s real estate in the county where the property is located, so the property cannot be sold or refinanced without addressing the lien. It stays in place for a set period and can be renewed until the judgment is satisfied.

This is different from tax liens, which come from unpaid government taxes; mortgage liens, which arise from a loan the borrower used to buy the property; and HOA liens, which come from unpaid homeowners association dues. The key idea is that a judgment lien originates from a court order to pay a creditor.

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