Legal Question in Real Estate Law in Virginia
No lien but my lawyer won't close until judgment is paid
Please help me understand: Finally, after almost 2 months of perking, easement issues, title searches, etc., we're ready to close, but the lawyer I hired states that I have a judgment that needs to be paid out of the sale price. The lawyer's office wants me to contact the company to whom this money is owed to give permission for this lawyer to request a payoff. Then the lawyer will deduct the amount from my sale money and give me the remainder. My question: It is not a lien, just one of a few judments on my record and one that I dispute still. Why am I required to pay this particular judgment from the proceeds of this land sale if there is no lien? What Virginia law says this lawyer can't close on the sale until this judgment is paid? Please help me.
2 Answers from Attorneys
Re: No lien but my lawyer won't close until judgment is paid
I would suggest that you stop by the circuit court
(civil division)in the jurisdiction where the property is located and check the judgment lien book yourself in the land records section where the judgment to which you're referring is very likely recorded.
It's now possible in some jurisdictions to do this kind of search via the Internet.
Re: No lien but my lawyer won't close until judgment is paid
You say there is no lien. A judgment is an automatic lien, and it will have automatically attached to the real estate as long as it was entered or docketed in the circuit court for the county in which the real estate is located. Anyway, it is likely that this is not a requirement of the closing attorney (who would not make such requirements - but if you hired him he may give you legal advice recommending that it be paid off), but of either the buyer, his lender or the title insurance company. Note that while you may "dispute" the judgment, if it is a judgment against you and is final and the appeal period has run without an appeal having been filed, or such appeal having been decided against you, your dispute of this judgment is legally irrelevant.