Which of the following liens is created by a court order due to a legal judgement?

Prepare for the PSI Property Ownership Exam with flashcards and multiple choice questions. Each question comes with hints and explanations to optimize your study time. Get exam-ready today!

A judgement lien is specifically created as a result of a court order stemming from a legal judgment against an individual or entity. When a creditor wins a lawsuit and is awarded a monetary judgment, they may seek to collect that debt from the debtor's property. This is accomplished by filing the judgment with the appropriate court, which then transforms the debt into a lien against the debtor's property.

This lien attaches to the debtor's real estate, allowing the creditor to claim part of the sale proceeds if the property is sold, or potentially foreclosing on the property if the debt remains unpaid. The legal basis of the judgement lien comes from the civil procedure designed to enforce the judgment, thereby giving it a unique status compared to other liens which arise from different circumstances, such as mortgages or statutory requirements.

Other types of liens, like a mortgage lien, are created when a borrower takes out a loan to purchase property, while a mechanic's lien typically arises when a contractor or supplier has provided services or materials for a construction project and hasn't been paid. A statutory lien involves a lien that is established by law, such as property tax liens. Each of these has different creation mechanisms and purposes, which distinguishes them from a judgement lien's reliance on the judicial system to enforce

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