What is a judgment lien?

A judgment lien is defined as a lien placed on a property due to a legal judgment in favor of a creditor. When a creditor wins a lawsuit against a debtor for unpaid debts, the court may issue a judgment that allows the creditor to claim a lien on the debtor’s property. This lien serves as a legal claim against the property and gives the creditor the right to collect the amount owed by forcing the sale of the property if necessary. Judgment liens ensure that creditors can recover debts by leveraging the debtor's real estate assets as security.

The other options describe different concepts. A lien on property due to unpaid taxes is specifically a tax lien, not a judgment lien. A lease agreement refers to a rental arrangement and is unrelated to liens or judgments. A right to occupy property based on legal proceedings could relate to various legal rights but does not specifically pertain to the financial claim represented by a judgment lien.