What Is a Judgment Lien?

A judgment lien is created when a creditor wins a lawsuit against you and records the judgment in the county where you own property. In Florida, a recorded judgment automatically becomes a lien on all real property you own in that county (except homestead property).

Florida's Homestead Exemption and Judgment Liens

Florida's homestead exemption protects your primary residence from most judgment liens. Creditors generally cannot force the sale of your homestead to satisfy a judgment. However, the lien may still attach to the property and must be addressed when you voluntarily sell.

Important exceptions: The homestead exemption does NOT protect against mortgage liens, HOA liens, mechanic's liens, or IRS tax liens.

How Judgment Liens Are Handled at Closing

The title company identifies all judgment liens during the title search. At closing, the liens are paid from the sale proceeds in priority order. You receive whatever remains after the mortgage and all liens are satisfied.

What If the Judgments Exceed Your Equity?

If the total of all judgments and the mortgage exceeds the sale price, you may be able to:

• Negotiate with judgment creditors — Creditors often accept less than the full judgment amount to receive something rather than nothing
• Challenge the lien's validity — Some judgment liens may be challengeable (expired, improperly recorded, homestead-protected)
• Consult a real estate attorney — An attorney can negotiate with creditors and structure the sale to maximize your net proceeds

Mechanic's Liens

A mechanic's lien is filed by a contractor, subcontractor, or supplier who wasn't paid for work on the property. In Florida, mechanic's liens must be filed within 90 days of the last work performed. They're paid at closing like other liens.