Question 1

How does a judgment lien encumber Florida real property differently than a mortgage?

Accepted Answer

Key differences: a mortgage is a voluntary lien (the borrower agrees to it as security for a loan), while a judgment lien is involuntary (imposed by recording a court judgment without the owner’s consent). A mortgage encumbers a specific property (described in the mortgage document), while a judgment lien encumbers all non-exempt property in the county. A mortgage has a defined payoff amount (the loan balance plus interest), while a judgment lien amount grows with statutory interest over time. A mortgage is typically the senior lien (first recorded), while a judgment lien is usually junior. Both prevent clear title transfer without satisfaction.

Question 2

Can a Florida judgment lien encumber property held as tenants by the entirety?

Accepted Answer

Partially. Tenancy by the entirety property (held by a married couple) is generally protected from the individual debts of either spouse. A judgment against only one spouse does not create an enforceable lien against tenancy by the entirety property. However, a judgment against both spouses jointly does encumber the property. If the non-debtor spouse dies first, the debtor spouse becomes the sole owner, and the judgment lien then attaches. If the debtor spouse dies first, the judgment lien is extinguished (the surviving non-debtor spouse owns the property free of the lien). This protection makes tenancy by the entirety a powerful asset protection tool for married Florida couples.

Question 3

What should a Florida property buyer do if a judgment lien is discovered during the title search?

Accepted Answer

If a judgment lien is discovered: (1) The title company will include the lien as an exception on the title commitment. (2) The buyer should require the seller to satisfy the lien before closing (using sale proceeds or other funds). (3) The title company will calculate the payoff amount (judgment plus accrued interest). (4) The closing agent will withhold the payoff from the seller’s proceeds and remit it to the creditor. (5) The creditor records a satisfaction of judgment. (6) The title company removes the exception and issues the policy. If the seller cannot satisfy the lien and the lien amount exceeds the sale proceeds, the parties may need to negotiate a lien reduction with the creditor or the buyer may choose not to proceed.

Judgment Lien Real Property Encumbrance

Judgment Lien as Real Property Encumbrance in Florida

Judgment Lien vs. Mortgage

Tenancy by the Entirety Protection

Buyer Steps When Lien Is Found

Related Terms

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