What is a judgment?

A judgment is indeed a decision made by a court of law after reviewing the evidence and arguments presented by the parties involved in a legal dispute. This ruling serves to resolve the issues at stake in the case and can result in various outcomes, such as the award of damages, restitution, or other forms of relief. The judgment reflects the court's interpretation of applicable laws and facts concerning the matter being adjudicated.

Understanding the nature of a judgment is crucial in real estate as it can impact property ownership, financial obligations, and creditworthiness. For instance, a judgment can create a lien on a property, affecting a seller's ability to transfer clear title. Additionally, judgments can become relevant when discerning a buyer's financial background during the transaction process.

The other options refer to different legal concepts. An agreement between two parties in a lawsuit pertains to settlements or contracts rather than a judgment itself. An informal resolution to a dispute typically involves mediation or negotiation, which also does not equate to a formal judgment. A legal document outlining property ownership is more accurately described as a deed, which records who has legal title to a property but is separate from the court's decision-making process involved in a judgment.