What is a Judgment Lien?
One of the main things that a property title search and title insurance protect you from when purchasing a home is a lien that you may not be aware of that has been placed on the property. There are different types of liens, but a judgment lien is probably the worst one. A judgment lien gives the lien holder or creditor a personal stake in a debtor’s property. In other words, it allows the creditor to turn an unsecured loan or debt into a secured one. The debtor cannot sell his or her property with a clear title unless they pay back the delinquent balance owed against the lien.
How Do Real Estate Judgment Liens Work?
A mortgage holder has a lien on the property owner’s real estate until you pay the mortgage in full. Similarly, the holder of a properly attached judgment lien has a security interest in the defendant/debtor’s property. In general, and with some exceptions, a judgment lien against real estate would be paid upon the sale or refinance of the property. However, judgment liens impair the property’s equity. Therefore, a property owner may have motivation to pay a judgment lien claim as soon as the owner is aware of the lien.
A Property Title Search Helps Protect Buyers From Judgment Liens
To avoid any last-minute surprises in the closing process and guarantee that the buyer will become the sole owner of the property, a thorough, professional property title search is critical. We provide the highest quality property title searches for buyers of properties in all New Jersey counties. The depth of our research is unparalleled, spanning the gamut of residential, commercial, industrial, government, state, county, and municipal searches. We are experienced in dealing with any potential problems before they can create a serious issue by making sure all the correct information and documents are accounted for.
What is Title Insurance and Why Is It Important?
Once a property title search has been completed and ownership of the property has been verified, the homeowner will then be issued title insurance. This insurance protects both property owners and lenders from losing the property due to any title defects such as liens, lawsuits, unpaid taxes, fraud, or errors as well as covering the costs of defending against future, unforeseen claims on the property.
Buying a home is usually the single largest investment most people make in their lifetime. Protecting that investment from issues of ownership and other hidden title defects is a smart added layer of security for any buyer.
Learn more about title insurance in our blog post: What is Title Insurance?
Contact Scott Title Services Today
For over two decades, the Scott Title team has maintained a commitment to delivering the highest quality of service in the title insurance industry. We provide our clients with an attention to detail they won’t find anywhere else when it comes to title insurance services including property title searches, settlement services, and real estate paralegal services. Buying a home is usually the single largest investment most people make in their lifetime, and our experienced team will make sure you are fully prepared for a smooth and successful closing. Contact us today to learn more about our services.