Well, let’s stop, take a step back and zero in on this public record due diligence process. One specific term in here is often misunderstood and that confusion can impact the outcome of public record due diligence searches.
That word? Judgment.
The key point to be made here is that there is a difference between a judgment and a judgment lien. The two terms are not interchangeable:
Judgment liens are created after a judgment is recorded in the local filing office (County Recorder, Recorder of Deeds, County Clerk etc.) where the real property records are located – not in the court. It is true that a judgment can automatically become a judgment lien in some jurisdictions but in the large majority of states, a judgment lien does not occur automatically just because a judgment has been entered by the court.
Since a judgment is not the same as a judgment lien, searching in either the court or the local real property filing office will not uncover everything needed for public record due diligence.
Court searches are necessary to uncover both judgments and pending litigation, but local real property filing office searches are necessary to uncover judgment liens.
The next time someone requests a thorough public record due diligence search, stop and confirm whether both court searches (for judgments and pending litigation) and local real property filing office searches (for judgment liens) are needed – and if so, that both are requested. Without clarifying exactly what’s needed, you might end up missing critical public record information.
This article is provided for informational purposes only and should not be considered, or relied upon, as legal advice.