Escrow & Title
A Philadelphia row home is being sold, and the title search reveals a 1987 judgment lien in the seller's name. The seller claims the debt was paid years ago. To close, the seller must:
ASimply declare the lien was paid and the title company will accept it
BObtain a satisfaction of judgment from the judgment creditor and have it recorded, OR obtain a court order removing the lien✓ Correct
CReduce the sale price to compensate for the lien
DObtain PREC approval to close with an outstanding lien
Explanation
A recorded judgment lien must be formally released — through a satisfaction of judgment signed by the creditor and recorded, or by court order — before it can be removed from the title. The title company cannot simply accept the seller's assertion that the judgment was paid without formal legal release.
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