![]() The Charlton court continued that “an abstract of judgment…makes the judgment creditor a secured creditor ( Laubisch v. If an interest in real property that is subject to a judgment lien is transferred or encumbered without satisfying or extinguishing the judgment lien: … The interest transferred or encumbered remains subject to a judgment lien created pursuant to Section 697.310 in the same amount as if the interest had not been transferred or encumbered.Īs one court explained: “When real property encumbered by a duly recorded abstract of judgment is transferred, the transferees are charged with constructive knowledge of the encumbrance and they take title to the property subject to the lien created by the abstract, not as bona fide purchasers. Related thereto, Code of Civil Procedure § 697.390(a), entitled “Interest subject to lien transferred or encumbered,” provides that: Specifically, Code of Civil Procedure § 697.310, entitled “Creation and duration of lien generally,” provides in Subsection (a) that: “Except as otherwise provided by statute, a judgment lien on real property is created under this section by recording an abstract of a money judgment with the county recorder.” In turn, Subsection (b) explains that: “Unless the money judgment is satisfied or the judgment lien is released, subject to Section 683.180 (renewal of judgment), a judgment lien created under this section continues until 10 years from the date of entry of the judgment.” Property Transferred After a Judgment Lien Remains Subject to that Judgment Lien ![]() This system allowing judgment creditors to maintain their lien after a transfer of real property is set forth by statute. Recording an Abstract of Judgment Creates a Lien on All Real Property in that County for 10 Years – Code of Civil Procedure § 697.310 Despite these challenges, this article by an experienced California real estate attorney presents various methods to sell or transfer the property without the lien, or to resolve a lien that is already on the property with or without the creditor’s consent. This means that, when the owner of a property that is subject to a judgment lien transfers their interest in that property, the new owner(s) take that property subject to that judgment lien under California’s first in time, first in right system of recording. ![]() This creates a problem for sellers who acquire a property subject to a judgment lien and for debtors with a judgment lien that has attached to their real estate. When a creditor records an abstract of judgment in California, a lien is created that attaches to all real property in the name of the debtor in the counties where the abstract is recorded. Contact a Skilled Lien Priority Lawyer in California Recording Priorities when Real Property is Transferred After an Abstract of Judgment is Recorded under California Code of Civil Procedure Section 697.390
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