If a judgment is placed on a property as an encumbrance, what is it generally categorised as?

A judgment placed on a property as an encumbrance is categorized as a financial lien because it represents a legal claim against the property to secure payment of a debt or obligation. When a court issues a judgment against a debtor, it often allows the creditor to place a lien on the debtor's property, which can affect the property’s title and make it difficult to sell or refinance until the judgment is settled.

This categorization is important because it highlights the nature of the judgment as a financial liability that must be cleared for the property to be transferred or used freely. Financial liens are generally prioritized in the order of claims against the property's value, and they require attention during any transactions involving the property to ensure that all obligations are met.

Understanding this classification is crucial for property owners and potential buyers, as it underscores the impact of legal judgments on property rights and ownership.