One thing we tackle with Torrens vs. Abstract property are judgments and state tax liens. A judgment or state tax lien in the county where the land is located may be a lien against any property owned in that county by the debtor. However, that really only applies to Abstract property. If the debtor owns Torrens property, that judgment will have to be filed against the Torrens Certificate of title. If that doesn’t happen, it’s deemed not to affect the land.
Nonetheless, if we’re conducting a title search and we discover a judgment or state tax lien against the landowner, and that judgment is not listed on the Torrens Certificate of Title, we will still raise an exception on the title commitment for that judgment or tax lien, but indicating that if it is not recorded against the Certificate of Title at the time the recording for the transaction takes place, then it will not continue as an exception to coverage. There is always the potential that the judgment creditor could still file that judgment against the Torrens Certificate of Title before we get our documents recorded.