Does anyone have experience with a judgement that was entered in tenant's favor

Does anyone have experience with a judgement that was entered in tenant's favor

Rental Property Investor · Allentown PA · Member since 2021 · 159 posts · 36 votes

Hello BP,

Tenant disputed itemized letter of the SD. Last week we had the civil hearing at the MDJ and tenant was awarded partial judgement for about 300 bucks plus court costs. The only information on the judgement states that either party has 30 days if they want to file an appeal. I have never been through this before and I am in the state of PA. I was wondering if anyone had any information or knowledge on when I should pay the tenant and if how can I check if she files an appeal or not? should I wait till it's past the 30 days because what if I pay and then she files an appeal? or does it need to be paid by a certain date? there really isn't any information on this paperwork and I called the courthouse and they were not very helpful. 

Thanks! 

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Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
3y

@Linda Thomas, you should pay before the 30 days. If she appeals and is awarded more, your payment will count towards that.

If you don't pay within 30 days, they can start charging you 6% interest on that amount. In addition, they can take a copy of the judgement to the prothonotary's office and record it creating a general lien on any property you own in that county. So, if you were trying to sell or refinance ANY property in that county (not just the one the tenant lived in) that lien would show up and throw a monkey wrench in the works.

The courthouse will not give legal advice, that is why they were not helpful. They don't want to be liable for giving that kind of assistance.

BTW, this is one reason an LLC is helpful. If you didn't want to or were unable to pay the judgement a lien filed in the LLC's name would not affect your personal residence. If you operate within your own name, then your personal residence could end up with a lien on it.

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  • Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    3y

    @Linda Thomas, you should pay before the 30 days. If she appeals and is awarded more, your payment will count towards that.

    If you don't pay within 30 days, they can start charging you 6% interest on that amount. In addition, they can take a copy of the judgement to the prothonotary's office and record it creating a general lien on any property you own in that county. So, if you were trying to sell or refinance ANY property in that county (not just the one the tenant lived in) that lien would show up and throw a monkey wrench in the works.

    The courthouse will not give legal advice, that is why they were not helpful. They don't want to be liable for giving that kind of assistance.

    BTW, this is one reason an LLC is helpful. If you didn't want to or were unable to pay the judgement a lien filed in the LLC's name would not affect your personal residence. If you operate within your own name, then your personal residence could end up with a lien on it.

  • Rental Property Investor · Allentown PA · Member since 2021 · 159 posts · 36 votes
    3y
    Quote from @Kevin Sobilo:

    @Linda Thomas, you should pay before the 30 days. If she appeals and is awarded more, your payment will count towards that.

    If you don't pay within 30 days, they can start charging you 6% interest on that amount. In addition, they can take a copy of the judgement to the prothonotary's office and record it creating a general lien on any property you own in that county. So, if you were trying to sell or refinance ANY property in that county (not just the one the tenant lived in) that lien would show up and throw a monkey wrench in the works.

    The courthouse will not give legal advice, that is why they were not helpful. They don't want to be liable for giving that kind of assistance.

    BTW, this is one reason an LLC is helpful. If you didn't want to or were unable to pay the judgement a lien filed in the LLC's name would not affect your personal residence. If you operate within your own name, then your personal residence could end up with a lien on it.

    Thank you for your help, Kevin, I really appreciate it!! Should I send the check by certified mail?? and how do I go about making sure that the courthouse marks the judgement as satisfied once I do pay it so it does not affect or show up on any of my properties etc? 
  • Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    3y
    Quote from @Linda Thomas:
    Quote from @Kevin Sobilo:

    @Linda Thomas, you should pay before the 30 days. If she appeals and is awarded more, your payment will count towards that.

    If you don't pay within 30 days, they can start charging you 6% interest on that amount. In addition, they can take a copy of the judgement to the prothonotary's office and record it creating a general lien on any property you own in that county. So, if you were trying to sell or refinance ANY property in that county (not just the one the tenant lived in) that lien would show up and throw a monkey wrench in the works.

    The courthouse will not give legal advice, that is why they were not helpful. They don't want to be liable for giving that kind of assistance.

    BTW, this is one reason an LLC is helpful. If you didn't want to or were unable to pay the judgement a lien filed in the LLC's name would not affect your personal residence. If you operate within your own name, then your personal residence could end up with a lien on it.

    Thank you for your help, Kevin, I really appreciate it!! Should I send the check by certified mail?? and how do I go about making sure that the courthouse marks the judgement as satisfied once I do pay it so it does not affect or show up on any of my properties etc? 

    I don't believe the court has anything to do with the collection process unlike in criminal cases where restitution is awarded. So, I think paying by any method where you can retain a proof of payment should be sufficient. So, a check by certified mail should suffice just make sure you keep a copy of the cancelled check.

    If it wasn't paid within 30 days AND IF they filed with the prothonotary creating a lien, THEN when paid you would also need to get them to sign off on a document showing the lien is released and record that with the prothonotary to show to everyone in the future that the lien is no longer in force. Another reason paying now is important to avoid all that extra hassle.
  • Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
    3y

    @Linda Thomas I would just pay the $300. But with that being said I had a real jerk tenant who won a judgement against me during covid. I never received the court date or any paperwork so the judgement was filed and I apparently owe them $4000. I haven't paid it in over 3 years and I have bought and sold a lot of properties in this LLC name. I am not sure I will ever have to pay it. If its $300 I would just pay it.

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