How a Judgment Lien Can Haunt Your Business Long After the Case Is Closed

Most business owners breathe a sigh of relief when a lawsuit is over. The case is closed, the judgment is entered, and it’s time to move on, right? Not necessarily.

If you’re buying assets, merging with another company, or acquiring property, a judgment lien tied to those assets can follow you for years. And if you don’t check for them before closing the deal, you could inherit someone else’s legal baggage.

In this blog post, we’ll break down what judgment liens are, how they work in Florida, and how to protect your business from being blindsided by one.

What Is a Judgment Lien in Florida?

A judgment lien is a legal claim against property, whether real estate, equipment, or other assets, that secures payment of a debt resulting from a court judgment.

In Florida, once a creditor wins a lawsuit against a business or individual, they can record that judgment with the Florida Department of State or in county records. This lien can attach to the debtor’s property, meaning that if the property is sold, transferred, or refinanced, the lien must be paid off before clear ownership can pass.

How Long Does a Judgment Lien Last in Florida?

Florida law allows a recorded judgment lien to last up to 10 years, and it can often be renewed for another 10 years. That means a lien recorded today could still impact the property in 2035, long after the original dispute is forgotten.

Even if the lawsuit is over and the business that owed the money has dissolved, the lien remains attached to the property until it’s satisfied or released.

How Judgment Liens Affect Business Purchases and Mergers

If you’re buying a company, merging with one, or acquiring its assets, judgment liens are a silent threat that can drain your investment:

• Property Purchases: A lien on real estate means you can’t take clear title until it’s paid.
• Equipment or Inventory Acquisitions: Liens can cover tangible personal property, meaning you might pay twice, once to buy it, and again to clear the lien.
• Corporate Mergers: If you acquire a company with outstanding liens, you may inherit those debts, even if you didn’t cause them.
  

How to Check for Judgment Liens in Florida

Before signing any deal, it’s critical to run a judgment lien search and a UCC-1 filing search. In Florida, you can:

• Search the Florida Department of State’s judgment lien database
• Check county public records for any recorded judgments or liens
• Work with a business attorney to review lien releases and ensure there’s no hidden debt

Why Businesses Miss Hidden Liens

Many companies skip thorough due diligence because they:

• Assume title searches only matter for real estate purchases
• Rely on the seller’s word that “everything is paid off”
• Don’t realize liens can exist on personal property, not just real estate
• Focus on the financial statements but not the public record filings

Unfortunately, missing a lien during a transaction can mean paying off a debt you didn’t create.

The Best Protection: Legal Due Diligence

The safest way to avoid lien-related surprises is to have an experienced business attorney perform a full due diligence review before you sign any contract.

At Ayala Law, we regularly help businesses:

• Investigate lien records before asset purchases or mergers
• Negotiate lien payoffs and releases
• Draft agreements that protect buyers from inherited debt
• Structure transactions to minimize exposure to hidden liabilities

Bottom Line: Judgment Liens Don’t Expire When the Case Does

A lawsuit may be over, but its effects can live on through judgment liens for decades. What you don’t know can cost you, And in business, those surprises can be expensive. 

If you’re planning a purchase, merger, or asset transfer, never assume there’s a clean slate, verify it, contact one of our experienced business attorneys in Miami at 305-570-2208.

You can also contact our founding attorney Eduardo A. Maura at eduardo@ayalalawpa.com.

Schedule a case evaluation online here.

[The opinions in this blog are not intended to be legal advice. You should consult with an attorney about the particulars of your case].