Collections Abstracts & Liens

California Judgment Lien: Get Paid When They Sell Their House

Your judgment becomes a lien on their real estate the moment you record the abstract. When they sell, refinance, or die—the title company pays you first. Passive collection that works while you sleep.

10 years
Lien Duration
Auto-attach
Future Property
Survives BK
In Many Cases

How Judgment Liens Work

When you record an abstract of judgment with the county recorder, your judgment automatically becomes a judgment lien on all real property the debtor owns in that county. Under CCP § 697.310, the lien attaches to:

The lien creates a "cloud on title" that prevents clean transfer of the property. Title companies won't insure transactions without clearing your lien first—which means you get paid.

The Power of Patience

Unlike active enforcement (bank levies, wage garnishment), a judgment lien is passive. You record once and wait. Eventually, the debtor needs to sell, refinance, or take out a home equity loan—and they can't without paying you.

Lien vs. Forced Sale: Know the Difference

Judgment Lien (Passive)

  • Cost: ~$40 per county
  • Blocks sales & refinancing
  • Catches future acquisitions
  • 10-year duration
  • Can't force a sale
  • Wait for debtor to act

Forced Sale (Active)

  • Cost: $2,000-5,000+
  • Force sheriff's auction
  • You control timing
  • 1-year redemption period
  • Homestead blocks many sales
  • Complex process

Strategic approach: Record the lien (cheap, easy, always worthwhile). Only pursue forced sale if the judgment is large enough to justify costs and you've confirmed the debtor has equity above the homestead exemption.

What Triggers Payment

1. Voluntary Sale

When the debtor lists their property for sale, the title company runs a title search and discovers your lien. The sale can't close until you're paid. Escrow deducts your judgment (plus interest) from the sale proceeds before the seller gets anything.

2. Refinancing

Same process. Lenders won't fund a refinance with your lien on title. If the debtor wants to refinance their mortgage, tap home equity, or get a HELOC, they must pay you first.

3. Death

When the debtor dies, your lien follows the property into the estate. Under CCP § 697.390, the lien continues for one year after death or until the estate closes the property—whichever is later. Heirs can't inherit clean title without satisfying your lien.

4. Transfer to Third Party

Any transfer requires title insurance. Title companies won't insure with a lien. Even gift transfers, trust transfers, or transfers incident to divorce will uncover your lien and require payoff.

The Homestead Catch

A judgment lien doesn't override California's homestead exemption ($313K-$626K). If the debtor's equity is less than the exemption, you won't get paid from a voluntary sale either—the exemption gets paid first. Check their equity before counting on the lien.

Judgment Liens and Bankruptcy

Bankruptcy doesn't automatically wipe out your judgment lien. Under federal bankruptcy law, a judgment lien can survive Chapter 7 bankruptcy if there's equity in the property above the debtor's exemption.

Lien Survival Analysis

The debtor must affirmatively file a motion to avoid your lien under 11 U.S.C. § 522(f). Many don't. If they don't move to avoid the lien during bankruptcy, it survives—and you collect when they eventually sell post-bankruptcy.

Monitor Bankruptcy Filings

If your debtor files bankruptcy, you'll get notice. Watch for motions to avoid your lien. If you oppose successfully (because there's equity), your lien survives. If they don't file the motion at all, your lien survives by default.

Frequently Asked Questions

Yes. The abstract shows the principal judgment amount, but interest accrues automatically at 10% per year under CCP § 685.010. When escrow pays you, they calculate the total owed through the date of payoff: principal + 10% annual interest + any recorded costs.

If the sale proceeds don't cover all liens, senior liens (mortgages recorded before your judgment) get paid first. You get whatever's left. If there's nothing left, you don't get paid from that sale—but your judgment remains valid and you can pursue other collection methods (wages, bank accounts, other property).

They can try, but it won't work. Any sale—even to family—requires title insurance for the buyer or their lender. No title company will insure with your lien on title. Even if they do a "quit claim" deed without title insurance, your lien follows the property. The family member now owns property subject to your lien. And the fraudulent transfer may let you undo the sale entirely.

Your lien attaches to ALL real property they own in counties where you've recorded. If they own property in multiple counties, record in each one. When they sell any property, you get paid from that sale. The homestead exemption only applies to their primary residence—investment properties, vacation homes, and commercial property have no exemption protection.

File an Acknowledgment of Satisfaction of Judgment (Form EJ-100) with the court, then record it in every county where you recorded the abstract. Under CCP § 724.050, you must do this within 14 days of receiving written demand after full payment. Failure to release exposes you to liability for damages.

$240 /hour

Need Help With Judgment Liens?

I handle California judgment liens from abstract recording through payoff coordination. Multi-county recording, priority analysis, bankruptcy lien survival—professional judgment enforcement.

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