Judgment Lien in Real Property Flashcards
When is a judgment lien created?
when the judgment is officially entered into the real estate recording system (docketed), not when the judgment is issued.
Where is a judgment automatically docketed?
In the county where the judgment was issued.
What property does a judgment lien apply to?
All non-exempt real estate the debtor owns in the county.
a real property judgment lien attaches automatically to?
The lien automatically applies to property the debtor acquires after the lien is docketed.
What doesn’t the real property lien apply to?
It only applies to the debtor’s ownership interest in the property. It doesn’t attach to property held as a tenancy by the entirety.
How long does the real property lien last?
It lasts as long as the judgment itself, but any 20-year extensions require re-docketing.
If the judgment is extended, what happens to the priority?
The priority date remains the same as the original docketing.
Exception to the 20-year rule:
If the property is sold to a third party, the lien lasts only 10 years and can’t be extended.
To enforce a lien within the 10-year period (for third-party sales):
File a lis pendens notice.
How to enforce a lien:
The creditor must file a lawsuit in equity to enforce the lien.
Can a debtor stop the lien by paying the debt in Virginia?
No. Virginia doesn’t allow a “right of redemption,” meaning the debtor can’t stop the enforcement by paying the debt after the judgment.
No defense of “laches”:
The debtor can’t argue that the creditor delayed unreasonably in enforcing the lien.
What determines priority between liens?
First come, first served—priority is based on the order of attachment.
What happens to junior interests during a sale?
They’re wiped out, but the creditor must notify junior lienholders.
What happens to senior liens?
They stay with the property even after the sale.
Who gets the sale proceeds?
1st: Sale costs
2nd: Creditor (judgment holder)
3rd: Junior lienholders
4th: Any leftover goes to the debtor.
