If a transaction closed on February 15 and the buyer records the deed on April 24, what is the status of a judgment filed against the grantor on April 21?

Disable ads (and more) with a premium pass for a one time $4.99 payment

Prepare for the Nevada Real Estate Exam with our comprehensive study guide. Access flashcards and multiple choice questions, each with detailed explanations and hints. Gear up for your test with confidence!

The correct answer is that the judgment filed against the grantor on April 21 becomes a lien against the property. In real estate, when a grantor (seller) has a judgment entered against them, it typically attaches to their property as a lien. This occurs because, under the principles of lien theory, judgments create a legal claim against the granted property that can affect title and ownership.

In this scenario, even though the deed was recorded on April 24, the critical date here is that the judgment was recorded on April 21, which is before the buyer recorded their deed. Since the judgment was filed prior to the recording of the deed, it takes priority as a lien. This means that the lien would remain attached to the property even after the buyer becomes the official owner.

Recording a deed does give public notice of ownership and can protect the buyer against unknown claims; however, it does not erase or supersede existing liens against the seller's interests that were filed before the deed was recorded. Therefore, any judgments against the seller that were filed prior to the new owner's deed recording continue to affect the property.

Understanding this concept is vital, as it underscores the importance of title searches prior to purchasing property to avoid unexpected liabilities associated with liens

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy