Florida Broker Practice Exam

What does a judgment lien allow against a debtor's property?

1. Immediate foreclosure

2. Collection of unpaid damages

3. Protection from all creditors

4. Claiming property taxes owed

The correct answer is: Collection of unpaid damages

A judgment lien serves as a legal claim against a debtor’s property, allowing the creditor to secure the collection of a debt that has been legally established through a court judgment. When a creditor wins a court case and obtains a judgment against a debtor, they can place a lien on the debtor's property. This lien ensures that if the debtor sells the property or refinances it, the creditor can collect the unpaid damages specified in the judgment from the proceeds of the sale or refinancing. The other options do not accurately depict the function of a judgment lien. Immediate foreclosure does not occur automatically with a judgment lien; it requires additional legal processes. A judgment lien does not provide protection from all creditors; instead, it specifically pertains to the creditor that secured the judgment. Lastly, judgment liens are not directly concerned with claiming property taxes owed, which are a separate financial obligation of the property owner. Thus, the correct answer appropriately highlights the purpose of a judgment lien in facilitating the collection of owed damages.