A lot of sellers learn about a judgment lien for the first time when the title company calls. Maybe it’s an old credit card case, a contractor dispute, or a debt from years ago that you assumed went away. In Maryland, a recorded money judgment can sit on your house quietly until you try to sell, and then it has to be dealt with before the buyer gets clear title.
I’m Evan Weissman. I buy houses in Maryland, and judgment liens come up in a fair share of my purchases. This isn’t legal advice, and an attorney should look at your specific liens, but here’s how the process generally works.
How a judgment becomes a lien on your house
Under Courts and Judicial Proceedings Section 11-402, a money judgment that’s indexed and recorded under the Maryland Rules becomes a lien on the debtor’s interest in land in the county where it was entered, for the amount of the judgment and from the date of the judgment. It can also become a lien in other Maryland counties once it’s recorded there.
In plain terms, if someone sued you, won, and the judgment was recorded, it likely attaches to real estate you own in that county. The creditor doesn’t have to do anything more for the lien to exist.
How long a judgment lasts
The Maryland Judiciary’s judgments and debt collection page says a judgment lasts for 12 years and the creditor can renew it for another 12 years. So a lien from a case 10 years ago may still be very much alive, and one from 15 years ago may have been renewed.
Interest also adds up. According to the People’s Law Library page on collecting a judgment, judgments generally accrue interest at 10% a year under CJP 11-107, with a lower rate for certain judgments such as unpaid residential rent. An old judgment can be much larger today than the original amount.
How the title search finds it
When you sign a contract, the buyer’s title company searches the land records and the court judgment records for liens against you. Judgments are indexed by name, so the search can turn up:
- Judgments against you personally
- Judgments against someone with a similar name, which then have to be ruled out
- Older judgments marked satisfied, which shouldn’t hold up the sale
If a judgment is valid and unpaid, the title company will require it to be paid or released at settlement before it insures the buyer.
Protections worth knowing about
Not every judgment attaches to every house. A few Maryland rules can change the picture:
Medical debt. Real Property Section 14-203.1 says a lien on owner-occupied residential property may not be created for medical debt, and a court must remove one created in violation. CJP 11-402 points to that exception. I cover this more in medical debt and selling your house.
Tenancy by the entirety. Married couples in Maryland often own their home as tenants by the entirety. Under long-standing Maryland case law, a judgment against only one spouse generally doesn’t attach to property owned that way. A judgment against both spouses can. Federal tax liens are treated differently, so don’t rely on this for IRS debts.
Mistaken identity. If the judgment is against a different person with your name, the title company usually asks you to sign an affidavit with identifying details so it can clear the item.
Whether any of these apply depends on how your deed is titled and what the judgment says. Ask the title company to show you the exact record.
Paying it off at settlement
For most valid judgments, the process is straightforward:
- The title company requests a payoff from the creditor or its attorney, including interest and costs through the settlement date.
- The payoff is shown on the settlement statement as a deduction from your proceeds.
- At closing, the title company pays the creditor directly from the sale funds.
- The creditor files a satisfaction with the court, and the clerk marks the judgment satisfied under CJP 11-402(e).
You don’t need to come up with the cash ahead of time if the sale proceeds cover it.
Negotiating a lower payoff
Creditors sometimes accept less than the full balance, especially on old debts or when the seller’s equity is limited. A request for a reduced payoff is usually in writing and often goes through the creditor’s attorney. Any agreement should be in writing before closing, and the title company will want a release or satisfaction for the agreed amount.
If the house doesn’t have enough equity to pay every lien, you may need the agreement of lienholders to release their liens for less. That situation calls for an attorney.
When liens add up to more than the house is worth
If the mortgage, taxes, and judgments together exceed what the house will sell for, the sale can’t close without someone agreeing to take less. Options at that point can include negotiating with judgment creditors, a short sale if the mortgage is the main issue, or legal advice about bankruptcy. My articles on short sales vs. cash sales and selling after bankruptcy cover those paths.
How I handle liens in a cash purchase
When I buy, the title company does the same search it would for any buyer. If liens show up, we look at payoffs together before closing so there are no surprises on the settlement statement. Sometimes we push the closing date to give time for a creditor to respond. My as-is page explains the rest of my process.
How long does a judgment lien last in Maryland?
A judgment lasts 12 years, and the creditor can renew it for another 12 years, according to the Maryland Judiciary.
Can I sell my house with a judgment lien on it?
Yes. The lien is usually paid from your sale proceeds at settlement, and the creditor files a satisfaction afterward.
Does a judgment against my spouse affect our house?
If you own the house as tenants by the entirety and the judgment is against only one spouse, Maryland case law generally says it doesn’t attach. Confirm with an attorney.
Can a medical debt judgment become a lien on my home?
Maryland law bars liens on owner-occupied residential property for medical debt, and a court must remove one created in violation.
Will a creditor take less than the full amount?
Sometimes, especially on older debts. Get any reduced payoff in writing before closing.
Talk through your situation
If a title search turned up judgments you weren’t expecting, call or text me at (410) 498-7473. I’ve worked through plenty of these and can tell you how they’d be handled in a sale to me.