Why is it crucial to check for judgments against the seller in a property transaction?

Checking for judgments against the seller in a property transaction is crucial primarily because judgments can create liens that affect clear ownership of the property. When a judgment is rendered against an individual, it often results in a lien being placed on any real estate they own. This lien serves as a public record indicating that the seller has a debt that needs to be satisfied.

If a property is sold without addressing these judgments, the new owner could inherit these liens, which may pose significant financial risks and complicate their ability to own the property free and clear. Essentially, any existing liens must be resolved before closing the transaction to ensure that the title can be granted without encumbrances. Therefore, understanding the status of any judgments against the seller is essential to ensure clear ownership and protect the buyer's interests.