In a civil court case, after a judge or jury hands down a verdict -- or after a court-approved settlement -- a judgment is entered by the court. As part of a typical judgment, the court orders the payment of money from one person to another. But the person who owes the money (the debtor) doesn't always pay up. A judgment lien is one way to ensure that the person who won the judgment (the creditor) gets what he or she is owed. A judgment lien gives the creditor the right to be paid a certain amount of money from proceeds from the sale of the debtor's property.
So how do judgment liens work in Maryland? Read on to understand the rules. (For more background information on liens on property and judgments in general, check out Nolo's articles Collect Your Court Judgment with a Real Estate Lien and Can You Collect Your Judgment?)
In every state, a judgment lien can be attached to the debtor's real estate -- meaning a house, condo, land, or similar kind of property interest. And some states also allow judgment liens on the debtor's personal property -- things like jewelry, art, antiques, and other valuables.
In Maryland, a judgment lien can be attached to real estate only, not to personal property.
A judgment lien is created automatically on any real estate that is owned by the debtor and located in the Maryland county where the judgment was entered. For debtor property located in another Maryland county, the creditor files a certified copy of the judgment with the district court clerk for that county.
A judgment lien in Maryland will remain attached to the debtor's property (even if the property changes hands) for 12 years.
Keep in mind: In Maryland, a creditor's ability to collect under a judgment lien will be affected by a number of factors -- including a fixed amount of value that won't be touchable if the property is the debtor's primary residence (called a homestead exemption), other liens that may be in place, and any foreclosure or bankruptcy proceedings. If things get complicated, you may want to talk with an experienced Maryland bankruptcy and debt attorney to help you sort out any lien issues.
If you want to go right to the source and look up Maryland laws on judgment liens -- maybe you're a party to a judgment, or you're just researching potential encumbrances on property -- the relevant statute(s) can be found at Md. Code Ann. [Cts. & Jud. Proc.] section 11-402; Md. Ct. Rule 2-621, 2-625, 3-621, 3-622, 3-625. For tips on looking up Maryland state laws, check out Nolo's Laws and Legal Research section.