Florida Real Estate Broker ExaminationReal Estate Law and RegulationsMedium
A Florida real estate broker is working with a seller who owns a property with a recorded judgment lien against it. The seller is attempting to sell the property. Which of the following statements is true regarding the judgment lien?
- AThe lien prevents the seller from listing the property for sale.
- BThe lien attaches only to the homestead property of the debtor.
- CThe lien automatically expires after 7 years in Florida.
- DThe lien must typically be satisfied before or at closing for a clear title to be conveyed.
Show answer & explanationAnswer & explanation
Correct answer: D. The lien must typically be satisfied before or at closing for a clear title to be conveyed.
A judgment lien creates an encumbrance on the property. To convey clear title, the lien must generally be paid off at or before closing, often from the sale proceeds.
Why the other options are wrong
- A. A lien does not prevent listing, but it will impact the closing process as it must be cleared.
- B. Homestead property is generally protected from forced sale for judgment liens, but the lien itself can attach to other non-homestead properties.
- C. Judgment liens in Florida are generally effective for 10 years and can be renewed.
Judgment Lien (Florida)
A general, involuntary lien placed on all real and personal property of a judgment debtor in Florida, typically effective for 10 years and renewable.
- Created by a court order.
- Attaches to all non-exempt property of the debtor.
- Must be satisfied for clear title transfer.
Memory trick: A judgment lien is like a 'chain' on the property's title.