Chapter 12 - § 12.3 • JUDGMENT LIENS
| Jurisdiction | Colorado |
§ 12.3.1—In General
A judgment does not itself constitute a lien upon real property, even in the county where the judgment is rendered;26 the creditor must go a step further and acquire a specific lien.27 But whether or not a specific lien has been created upon certain property, if the property is sold pursuant to an agreement recognizing the continued existence of the judgment lien, the property will be encumbered by the judgment lien.28
§ 12.3.2—Creation of Judgment Lien
In the case of a state court judgment, a judgment lien is created by recording a certified copy of a transcript of the docket entry of a judgment for any debt, damages, costs, or other sum of money rendered by any court of record.29 No time is limited for the recording of the transcript (except that no valid transcript can be filed after the expiration of the period during which the judgment lien is in effect30 ); recording is optional with the judgment creditor.31 From the time of recording, and not before, the judgment is a lien upon all non-exempt real property of the judgment debtor,32 including after-acquired property.33 The lien attaches immediately upon being recorded.34 The clerk is required to issue a transcript of judgment even though a stay of execution is in effect.35 (The statutes formerly did not require the recording of a transcript of judgment.36 ) A stranger to the title cannot complain of any insufficiency or irregularity in the transcript.37 The recording of the transcript of judgment does not effect an execution upon the property of the debtor.38
A judgment includes "a decree and order to or from which an appeal lies."39 A judgment directing restitution of money is a judgment for a "sum of money."40 An order of restitution remains in effect until restitution is paid in full.41
In the case of a federal court judgment, a certified copy of the transcript of the docket entry of a judgment or decree rendered in a federal district court or circuit court within Colorado may be recorded in the same manner as in the case of a state court judgment.42 From the date of recording, the judgment or decree is a lien upon all non-exempt property of the judgment debtor, including after-acquired property, to the same extent as in the case of a state court judgment.43
§ 12.3.3—Property Subject to Judgment Lien
A judgment lien is a lien upon all the real property of the judgment debtor not exempt from execution in the county where the transcript is recorded, owned by him or which he may afterwards acquire, until the lien expires.44 If property is subject to a homestead, a judgment lien can attach only if the net equity of the judgment debtor is above the amount of the statutory homestead exemption.45 A judgment lien attaches not only to the actual interest of the judgment debtor but also to his apparent interest, as shown by the recorded documents.46 There must, of course, be some property to which the lien can attach.47 A judgment lien attaches to an interest which has been vested in a cestui que use under the Statute of Uses.48 A judgment lien is a lien upon improvements placed on real property after the date the transcript is recorded.49 A judgment lien does not attach to after-acquired property where the debt created by the judgment is discharged in bankruptcy.50
A judgment lien against a vendor attaching after the making of a contract of sale but before the delivery of the deed extends to all of the vendor's interest remaining in the land and entitles the purchaser at the sheriff's sale to all sums to be paid by the purchaser; the balance due on the purchase price is reached by an execution against the land.51 A judgment lien against a vendor has no effect upon the rights of the purchaser.52
The recording of a judgment lien against a partner does not create a lien against the real property of the partnership.53 A judgment creditor of one joint tenant cannot enforce his claim against the property of the other joint tenant.54
§ 12.3.4—Duration of Judgment Lien
A judgment lien continues for six years from the entry of the judgment.55 In the case of a foreign judgment, the six years runs from the date the judgment is entered in the foreign jurisdiction, not the date it was filed in Colorado.56 Thus, the recording of the transcript creates the lien, but it is the date of the judgment that determines the lien's duration.57
Prior to the 2002 amendment of the statute, if the underlying judgment was for child support or maintenance or arrears thereof or child support debt, the lien remained in effect for the life of the judgment (i.e., 20 years).58 Now, it appears that, except for liens under C.R.S. § 14-10-122(1.5)(b)(II), liens for child support or maintenance or arrears thereof or child support debt are treated the same as other judgment liens.59 The same rules apply to judgments of the juvenile court60 and the probate court.61 The expiration of the prescribed period does not extinguish the debt.62 A judgment lien is not lost by the failure to return an execution issued on the judgment within the prescribed period,63 but no execution may issue after the prescribed period, unless the judgment is revived.64 A writ of execution or certificate of levy does not extend the judgment lien.65
For the revival of judgments, see C.R.C.P. 54(h). For judgment liens on revived judgments, see C.R.S. § 13-52-102(1).
A domesticated foreign judgment must be revived under the provisions of Colorado law.66
Where a federal court judgment is for a debt owing to the United States, the judgment lien remains in effect for 20 years. It may be renewed for one additional period of 20 years, which will relate back to the date the judgment is filed if the notice of renewal is recorded before the expiration of the first 20-year period.67
§ 12.3.5—Priorities
The lien of a judgment creditor stands upon the precise footing as that of an innocent purchaser or encumbrancer in good faith, subject to the same tests as to good faith and regularity.68 If, before the recording of a deed, the judgment creditor, without notice of the conveyance, files a transcript of judgment, the lien of the judgment is superior to the rights of the grantee in the deed.69 A judgment lien prevails over prior equitable claims unless the judgment creditor has notice of the claims.70 Priority as between judgment liens is determined by the order of filing the transcripts.71
If a transcript of judgment is placed of record against a judgment debtor who, after the rendition of the judgment, changes his name and by such new name acquires real estate, the judgment creditor, or someone on his behalf, may record in the office of the recorder of the county where the real estate is located notice of the judgment and change of name. Unless the notice and change of name are recorded, the judgment is not operative against an innocent purchaser of the property for value without actual or constructive notice of the lien and change of name.72
Liens and property rights acquired between the date of a judgment and the date of its amendment nunc pro tunc are not affected by the amendment.73
§ 12.3.6—Extinguishment of Judgment Lien
C.R.C.P. 58(b) provides that satisfaction in whole or in part of a money judgment may be entered in the judgment record74 upon an execution returned satisfied in whole or in part, or upon the filing of a satisfaction with...
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