A money judgment of the court, when recorded, becomes what type of lien?

Prepare for the Encumbrances Test with multiple choice questions and flashcards. Each question includes hints and explanations. Ace your exam with confidence!

When a money judgment from the court is recorded, it creates an involuntary lien. This type of lien is established without the property owner's consent. Instead, it arises from a legal action where the court has ordered a debtor to pay a sum of money to a creditor. Once the judgment is recorded in the public records, it serves to encumber the debtor's property, meaning the creditor can seek recovery of their money through the sale of the property if necessary.

This is distinct from voluntary liens, which are created through agreements, such as a mortgage or a home equity loan consented to by the property owner. Special liens typically refer to liens that are specifically tied to a particular obligation or property, but a money judgment doesn't fall under this classification. Equitable liens are usually recognized by courts in situations that involve fairness and justice rather than being created by a specific legal proceeding like a money judgment. Therefore, the classification of a recorded money judgment as an involuntary lien is accurate because it reflects the nature of how the lien arises without the explicit agreement of the property owner.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy