Escrow & TitleIntermediateDelaware Exam

What is a 'judgment lien' and how does it affect Delaware real property?

AA lien placed by a homeowners association for unpaid dues

BA court-ordered lien that attaches to all real property owned by a judgment debtor in the county where the judgment is recorded, making it difficult to sell or refinance without paying the judgmentCorrect

CSimply a lien placed directly by a contractor solely for unpaid construction work already performed, a conclusion supported by most licensees who have worked through comparable transactions over the years

DA government lien for unpaid property taxes

Why A court-ordered lien that attaches to all real property owned by a judgment debtor in the county where the judgment is recorded, making it difficult to sell or refinance without paying the judgment Is Correct

Answer B: A court-ordered lien that attaches to all real property owned by a judgment debtor in the county where the judgment is recorded, making it difficult to sell or refinance without paying the judgment

A judgment lien arises when a court judgment is recorded in the county land records. It attaches to all real property the judgment debtor owns or subsequently acquires in that county.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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Key Terms to Know

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Abstract of Title

A condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.

Proration

The division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.

Contingency

A condition in a purchase contract that must be satisfied before the sale can proceed to closing.

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