Judgment Lien on Real Estate

Question 1

When does the judgment lien arise?

Answer 1

By docketing judgment, which occurs:
* Automatically where judgment is rendered
* By filing a copy of the judgment with the county clerk where enforcement is sought if in another county

Question 2

What is a judgment lien a lien on?

Answer 2

It’s a floating lien on all non-exempt real property in the county
* Attaches to after-acquired property

Question 3

What does a judgment lien attach to?

Answer 3

Only the debtor’s interest in property and not a tenancy by the entirety

Question 4

Who long does a lien last?

Answer 4

As long as the underlying judgment
* Must be re-docketed after a 20-year extension (re-docketing relates back ot original docketing if extended before expiration of the judgment)

Question 5

What is the exception general rule that a lien lasts as long as the underlying judgment?

Answer 5

A lien on the judgment debtor’s real property must be enforced within 10 years of the debtor’s sale to any purchaser

Question 6

How does a creditor enforce a lien?

Answer 6

By bringing a suit in equity in the city or county where the land is located

Question 7

What right of redemption exists for real property in Virginia?

Answer 7

NONE–once creditor has a lien, debtor may not prevent enforcement by paying the debt

Question 8

How can a party assert the defense of laches?

Answer 8

They can’t–not a valid defense against a judgment lient creditor

Question 9

How are priority fights between competing liens governed?

Answer 9

By first in time, first in right

Question 10

What happens to junior lienholders when the property is sold?

Answer 10

If they are notified and joined, their interests are cut off

Question 11

What happens to senior interests when the property is sold?

Answer 11

They aren’t affected–the purchaser takes subject to senior liens

Question 12

How are the proceeds of the sale distributed?

Answer 12

In the following order:
* Costs
* Creditor (the one bringing suit)
* Junior interests
* Debtor

Question 13

How does a creditor satisfy a judgment for tangible personal property?

Answer 13

With a writ of “fi fa”
* Writ commands officer to whom it is delivered to find property of debtor, seize it, and sell it to satisfy the judgment
* Lien is created by levy on property by the sheriff (levy is public act)

Question 14

When must a writ of fi fa be issued?

Answer 14

By the clerk within 21 days of the date of judgment unless otherwise instructed by the creditor

Question 15

What is the proper process for a writ of fi fa?

Answer 15

1. Writ issued to sheriff, instructing him to levy on tangible personal property in the county
2. Writ has a return on the back–sheriff describes the property found and what he did with it, then the return given back to the court
3. Sheriff must get return back in the time listed by the court, usually 90 days, or it’s void

Question 16

What are the general requirements of the levy?

Answer 16

(1) Property must belong to debtor at time of levy (e.g., not on leased property)
(2) Sheriff must seize property or observe with power to exercise “control or dominion”
(3) Sheriff must. serve a copy of the writ on the judgment debtor
(4) Sheriff must describe the property seized in the return
(5) Sheriff then conducts a public sale

Question 17

What is the remedy of the debtor if any part of the execution procedure is improper?

Answer 17

The debtor may move to quash the writ any time before the property is sold