Escrow & Title
What is a 'judgment lien' and how does it affect a Nevada real estate transaction?
AA lien imposed by a judge for unpaid property taxes
BA lien created when a creditor obtains a court judgment against a property owner; if recorded in the county where the property is located, it becomes a lien on all the debtor's real property in that county, which must be paid off before clear title can be conveyed✓ Correct
CA lien that only affects commercial properties in Nevada
DA temporary lien that automatically expires after six months
Explanation
A judgment lien is created when a creditor wins a court judgment and abstracts (records) it in the county records. It becomes a general lien on all the debtor's real property in that county. In Nevada, judgment liens must be satisfied before or at closing to deliver clear title to a buyer. Title searches reveal judgment liens, which may include credit card debt judgments, unpaid contractor claims, or any other civil money judgment. Judgment liens complicate closings when the seller has unresolved creditor claims.
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