What happens to a property when a judgment lien is determined by a court?

Study for the New Jersey Title Insurance Producer Exam. Study with flashcards and multiple-choice questions, each question has hints and explanations. Get ready for your exam!

When a judgment lien is established by a court, it allows a creditor to secure their claim against a debtor's property. This occurs when the creditor has successfully obtained a judgment against the property owner, usually following a lawsuit process. The lien represents a legal claim on the property for the amount of the judgment, which means that the creditor can later enforce the lien to collect the debt owed.

In practical terms, this means the creditor can attach a lien for the value of the judgment to the debtor's property. This lien will remain in place until the judgment is satisfied, such as through payment of the debt or through a sale of the property. This aspect of judgment liens is essential, as it ensures that the creditor has a form of security to recover what they are owed, even if the property owner attempts to sell or refinance the property.

The other possible outcomes mentioned in the other choices do not correctly represent the legal effects of a judgment lien. A lien does not necessitate immediate removal unless the judgment is overturned or paid off. Automatic sale of the property does not occur just because a judgment lien exists; rather, the property may be subject to foreclosure if the debt is not addressed. Finally, the owner does not lose all rights to the property;

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