Short answer
It does not stop a sale, but it must usually be paid or released at closing. In Pennsylvania a judgment entered in a county creates a lien on real estate there for five years, and it can be renewed. A title search will show it. Ask an attorney how to get a payoff.
How the lien works
A judgment lien arises when a creditor wins a money judgment and the judgment is entered of record in the county. Nolo's Pennsylvania guide explains that it attaches to real property in that county and lasts five years unless the creditor revives it. Each revival buys another five years. The lien is county by county, so it reaches property only in the county where it is entered.
Why it matters at closing
The lien prevents you from selling or refinancing the property without first dealing with the judgment. At settlement, the title company will usually require payoff from the proceeds or a release. If the payoff is larger than your equity, you may need to negotiate with the creditor. Because the lien is tied to the county, a judgment from one county does not reach a house in another county unless the creditor takes extra steps. That matters if you have moved or own property in several places. A title search will show what is recorded where your house sits. If you find an old judgment, check whether the five years have run and whether the creditor revived it. An attorney can read the docket and give you a clear answer.
Find out what is on record
Judgments are indexed through the county prothonotary's office. Ask your title company for a search, or ask an attorney to check. Do this before you list. Surprises discovered after a buyer signs can delay or kill a deal.
A payoff example
Here is a hypothetical. A house sells for $180,000. The mortgage payoff is $100,000. A judgment lien of $15,000 is on record. The title company pays the mortgage and the judgment from the proceeds, along with closing costs, and sends you the rest. If the judgment is large relative to your equity, the creditor might accept less than the full amount in exchange for a quick payoff. That is a negotiation, not a right. An attorney can make the call and get a written release. Ask the creditor for a payoff letter that lists a good-through date and per diem if any.
If you want to move on
Kaizen Home Buyers buys houses as-is for cash. We make an offer within 24 hours, with no repairs and no agent commission, and can close in 14 to 30 days or on your date. Call 267-329-0084. A sale can still work when judgments are on file if the price covers the payoffs. An attorney can negotiate with the creditor when the numbers are tight.