Understanding the Different Types of Judgments and Liens in California Real Estate

In California real estate, few things can derail a smooth transaction faster than a judgment or lien. These legal obstructions can complicate closings, cloud title, and create unexpected financial obligations, especially when they surface late in escrow.

Whether you're a seasoned homeowner, prospective buyer, or real estate professional, understanding how judgments and liens work is essential. In California's dynamic market, knowing what might show up on title and what it means is as important as square footage or curb appeal.

Here's a breakdown of the most common types of judgments and liens, how long they last, and what you need to know when they appear on a property report.

At their core, judgments and liens are legal claims against property, typically arising from unpaid debts, court rulings, or unresolved obligations. Some are tied to specific parcels, while others apply broadly to all property owned by an individual.

In a real estate transaction, any outstanding judgment or lien must be resolved, typically through payment or negotiated fulfillment, before the title can be transferred free and clear. That's why escrow companies order demands and title insurers scrutinize public records to ensure no financial "baggage" transfers with the deed.

Not all debts stay behind closed doors. When a creditor secures a court ruling against a property owner, that judgment can attach itself to real estate—potentially affecting title, saleability, and equity. In California, these legal obligations can linger for years, often catching sellers off guard and stalling transactions if left unaddressed.

Money judgments stem from court proceedings where a successful lawsuit results in financial compensation. If the debtor owns real property, the creditor can record the judgment in the county where that property is located.

Money judgments have a duration of 10 years from the date of recording, and can be extended an additional 10 years by recording a renewal before the expiration date. Satisfactory resolution comes via payment through escrow.

Support judgments are more persistent and nuanced, covering a total duration of 10 years from the date of the judgment. Spousal support remains active throughout the entire period until it is formally released. Child support judgments may remain in effect up to five years after the child reaches adulthood. A title cannot transfer until complete reconciliation of the spousal or child support (or both) judgments.

Because of their longevity and automatic attachment to assets, these liens often surprise sellers, particularly those emerging from old divorce proceedings or lapsed agreements.

If the United States government is the creditor, as in cases involving federal lawsuits, the judgment has a 20-year duration from the date of entry.

Few things carry more weight on a title than a tax lien. Whether imposed by the IRS, the California Franchise Tax Board, or local municipalities, these liens represent unpaid taxes that take priority over other debts. In real estate transactions, resolution of tax liens is necessary before title can transfer, and failure to address them promptly can delay or derail escrow.

Federal tax liens are blanket liens and apply to all assets—including homes, land, and personal property. Such liens carry a duration of 10 years from the original recording date, and the IRS may refile a renewal of the lien to maintain its priority.

Federal tax lien escrow requires an IRS Power of Attorney to obtain a demand with title implications. Title cannot close without a recorded release or payoff.

These liens arise from unpaid California state income taxes and operate similarly to IRS liens, with a 10-year duration and a renewal extension available.

Issued by California's Employment Development Department, these liens often stem from unpaid payroll taxes or business-related wage disputes, with a duration of 10 years unless refiled.

Typically result from unpaid property taxes. While technically a different class of lien, county tax liens take top priority and can result in tax sale foreclosure if unresolved.

Regardless of the type of tax they originate from, tax liens must be cleared before escrow closes. The title company cannot insure a property encumbered with an outstanding federal or state tax lien.

While the previous categories attach to all property owned by a person, some liens are property-specific and directly tied to a particular residence, building, or parcel.

A mechanic's lien, filed by contractors or subcontractors who performed labor or supplied materials but were never paid, lasts 90 days from the recording date. The contractor must initiate legal foreclosure action within that window to enforce the lien. Successful resolution most often stems from payment through escrow or negotiation.

The primary risk of a mechanic's lien is the possibility of delaying or derailing closing if it is discovered late in the process. Mechanic's liens are typical in flips or recent renovations where contractors were never paid or received only partial payments.

A Lis Pendens indicates a pending lawsuit that could affect the property's ownership. Notice of action liens often arise in disputes over ownership, partitions, or foreclosure attempts (including those stemming from a Mechanic's lien) and remain active until the lawsuit is withdrawn or released, or resolved by the court.

The Notice of Action lien proves a particularly weighty burden as it renders title uninsurable and effectively halts any sale or financing.

Should a homeowner fall behind on association dues, the HOA can record a lien against the property with no fixed expiration. Although enforceability varies by association and bylaws, in most HOA liens, escrow requirements most often require a demand from the HOA and the reconciliation of any outstanding amounts before closing.

Filed by cities or counties for code violations, health hazards, or cleanup work—such as weed abatement, illegal structures, or hazardous materials removal, substandard liens feature an open-ended timeframe. They can increase rapidly due to fines and interest. Escrow must request a demand from the city or county to determine what is owed before resolution.

As a disclosure-heavy, title-conscious state, judgments and liens matter in California real estate. Every judgment or lien must be addressed before escrow can close—and in most cases, that means either paying off the debt or proving its resolution.

Have questions about a lien or judgment on a property you're buying or selling and how it may impact your current or future real estate goals? Or looking for more California real estate guidance?

Whether you're navigating a luxury transaction or want to understand the fine print behind the paperwork, contact Consumer's Title Company today. Our team's extensive experience and range of services across all 58 counties in California promise the support and guidance you need to protect your most vital asset.