DALTX Real EstateDALTX Real EstateDALTX Real Estate
  • Home
  • Guest Post
  • Agents
  • Contact Us
  • About
  • Advertise With Us
Reading: Title Tip: Abstract of Judgment Day
Share
Font ResizerAa
DALTX Real EstateDALTX Real Estate
Font ResizerAa
  • Home
  • Guest Post
  • Agents
  • Contact Us
  • About
  • Advertise With Us
  • Home
  • Guest Post
  • Agents
  • Contact Us
  • About
  • Advertise With Us
Follow US
© DALTX. All Rights Reserved.
DALTX Real Estate > Title Business > Title Tip: Abstract of Judgment Day
Title Business

Title Tip: Abstract of Judgment Day

4 Min Read
SHARE
Abstract-of-judgment-e1524760381961-1024x821
With the Abstract of Judgment, the skeletons of a property’s title may come out of the closet.

By Lydia Blair
Special Contributor

Judgment Day in the title business is when the title search comes in and the skeletons in the closet come out. These types of skeletons often come in the form of an Abstract of Judgment. Most law abiding folks aren’t familiar with an abstract of judgment or how it affects real estate. But we see it in the title business regularly.

In Texas, an Abstract of Judgement (AJ) is basically a lien that is filed on a property for an unpaid debt. First a judgment for debt is rendered and then the creditor may file an Abstract of Judgment on the debtor’s property. It is designed to prevent the transfer of that property until the judgment has been paid.

In Texas, your homestead is protected from seizure by most creditors (except taxing authorities). So an AJ doesn’t hinder the peaceful enjoyment of your home – until you try to sell it. Apparently, this makes it easy for homeowners to ‘forget’ about the debt.

But an Abstract of Judgment can exist on a property for a long time with no action. The initial AJ is valid for 10 years and can be renewed by the creditor for another 10 years. An AJ from a governing body is good for 20 years. When the homeowners (or their heirs) eventually try to sell the property, the judgment is there.

Unlike a Texas homestead property, non-exempt real estate is not as protected. If you own non-exempt property, like a rental house, the Abstract of Judgment can allow the creditor to force the sale of the property at auction to pay the judgement. Section 52.001 of the Texas Property Code explains the AJ process. 

The abstract of judgment is discovered when doing a title search. Title companies specifically search in detail for these types of encumbrances. The AJ typically contains all of the relevant information, such as the amount of the judgment, court costs, attorney’s fees and any post judgment interest that was awarded. It is a cloud on the title that won’t be overlooked or reduced by the title company. 

The title company will require a release of the AJ before closing the transaction and issuing title insurance. Either the seller pays the judgment or often it can be deducted from the seller’s proceeds at closing. Regardless of how it is done, the judgment must be resolved.

Never underestimate the power of an Abstract of Judgment. Unlike the ghouls in the closet, it can haunt you for a very long time.

The opinions expressed are of the individual author for informational purposes only and not for the purpose of providing legal advice. Contact an attorney to obtain advice for any particular issue or problem.

Title Tip: Nine Ways To Save Money On Your Closing
Due and Payable — Time To Open Those Property Tax Bills
Title Tip: Who is Responsible For Fixing an HOA Violation, The Buyer or The Seller?
What Does Your Closing And The Coronavirus Have in Common?
Title Tip: Title Theft Protection, Insurance, or Monitoring
TAGGED:Abstract of JudgmentBuying a homeLientitle businessTitle SearchTitle Tip
Share This Article
Facebook Email Copy Link Print
Previous Article Highland Park Modern Mediterranean Hits a Style Home Run
Next Article IIDA’s Lavish Event Will Benefit Dwell with Dignity
Popular News
North Oak Cliff

Check Out This Reimagined Craftsman With Ceilings To Spare

Seriously Seeking a Home This Spring? Compass Has a Tour For That
5 Ways Professional Real Estate Photographers Make Your Listing Shine
Housing Infrastructure Could Get Hundreds of Millions In 2024 Bond Election, But What About Actual Houses?
Arlington Native Gena Godinez Tapped to Lead Dallas Builders Association
about us

DaltxRealEstate.com is the largest real estate blog and the only one in North Texas.

Links

  • Privacy Policy
  • Terms of Service
  • Contact Us
  • Paid Guest Post Submission
  • Real Estate Glossary

Categories

  • Commercial Real Estate
  • Home Inspection
  • East Dallas
  • Monday Morning Millionaire

Get Involved

  • Advertise With Us
  • Write for Us: Submit Guest Post

Find Us on Socials

© DALTX. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?