Rule 69.07: Execution on Realty.



(1) Lien Lis Pendens.  A lien lis pendens applies only to realty that is the subject matter of a lawsuit and described in the complaint. To affect the rights of bona fide purchasers and encumbrancers, an abstract must be registered in the register’s office of the county where the realty is located. The abstract must identify the court and contain names of parties to the action and a description of the realty and its ownership.

(2) Judgment Lien.  A judgment lien against the judgment debtor’s realty is created by registering a certified copy of the judgment in the register’s office of the county where the realty is located. Once a judgment lien is created by registration, it will last for the time remaining in a ten-year period from the date of final judgment entry in the court clerk’s office and for any extension granted by the court pursuant to Rule 69.04. For the extension of the lien to be enforceable, the judgment creditor must register the court’s order extending the judgment.

(3) Levy.  As long as a judgment lien is effective, no levy is necessary; the judgment creditor may move for an order of sale. Otherwise a levy occurs when the sheriff exercises control over the judgment debtor’s realty. The first judgment creditor to deliver a writ of execution to the sheriff, as shown by record in the clerk’s office, has priority over other judgment creditors as to the realty levied upon.

(4) Sale.  The sheriff shall sell the debtor’s interest in realty by auction. At least thirty days before the sale a notice generally describing the realty (including a street address if available) and stating the time, place, and terms shall be published in a newspaper of general circulation at the judgment creditor’s expense, taxable as court costs. Publication shall be repeated two times, with each of the three publications being separated by at least one week. At least twenty days before the sale, the judgment creditor shall mail a copy of the published notice to the judgment debtor and to all persons having an interest of record in the realty.

Proceeds of the sale shall be applied first to the sheriff’s statutory fees and reasonable expenses, then to court costs, then to the judgment creditor, and then any remaining balance to the judgment debtor.

Bona fide purchasers for value at the sale shall take free of any defects concerning notice. The sale extinguishes all junior or subordinate liens.

(5) Termination Statement.–Upon satisfaction of the judgment, the judgment debtor may demand that the judgment creditor record in the register’s office a termination statement to supersede any lien lis pendens or judgment lien of record. If the judgment creditor fails to register a termination statement within ten days after demand, the judgment creditor shall be liable to the judgment debtor for $100 and for any loss caused to the judgment debtor by failure to register. [Amended by order filed December 10, 2003; effective July 1, 2004 and by order filed december 29, 2005, effective July 1, 2006.]

Advisory Commission Comments [2004].

Rule 69 is rewritten in its entirety. The intent is to consolidate procedures established by statute, court precedent, and custom into a single orderly rule. New Rule 69 does not radically change current law.

Advisory Commission Comment [2006].

The only change in Rule 69.07(2) is to drop the final word in the original paragraph, “lien.” The court’s order granted pursuant to Rule 69.04 extends the judgment, not the judgment lien. The lien is extended by registering that order.

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