Which entity's standing may be foregone if a lien is not recorded?

Prepare for the Real Property Multistate Bar Exam with detailed quizzes, flashcards, and multiple choice questions. Each question includes hints and explanations to help you understand key concepts and excel in your test!

The correct choice is judgment creditors, as their standing to enforce a lien on real property is contingent upon proper recording. When a judgment is obtained, the creditor typically receives a judgment lien against the debtor's property. However, in order for that lien to be enforceable against third parties, the judgment must be recorded with the appropriate authority, often the county recorder's office. If the judgment creditor fails to record the lien, they do not have priority over subsequent purchasers or encumbrancers who may establish their interests in the property without notice of the judgment.

When considering the other entities listed, mortgage lenders usually have recorded liens as part of the lending process, which provides them with secured interest in the property. Dispossessed tenants, although they may have rights related to their tenancy, do not typically hold liens against real property; their claims are generally personal and do not require recording to be valid. Real estate agents do not have standing with regard to liens; their potential claims are typically related to commission payments and do not involve a recorded lien on the property itself. These distinctions highlight why judgment creditors specifically face the jeopardy of losing their legal standing if their lien is not recorded.

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