What is a judgement lien?

A judgment lien is defined as a lien that arises when a court issues a judgment against a property owner. This judgment typically results from a legal action in which the owner is ordered to pay a debt or satisfy a financial obligation. When the judgment is recorded with the county recorder of deeds, it attaches to the owner's real estate, thereby creating a claim against their property. This means that the property can be sold to satisfy the debt if the owner fails to pay it, allowing the judgment creditor to recover the amount owed.

In the scope of title insurance and property transactions, understanding judgment liens is crucial because they can affect the transferability of the property and can encumber the owner's title. Being aware of such liens helps ensure that potential buyers or other interested parties understand the financial obligations attached to a property before entering into transactions.

The other choices do not accurately represent a judgment lien. Options related to personal property claims, types of mortgages, or temporary property restrictions describe different legal concepts that do not specifically pertain to the situation of a court judgment affecting real estate.