Who benefits from the surplus after execution costs and liens are paid at a judgment lien auction?

The correct answer is that the original owner of the property benefits from the surplus after execution costs and liens are paid at a judgment lien auction. This is due to the principle that any excess proceeds from the sale of a property at auction, after satisfying debts and expenses, rightfully belong to the owner from whom the property was taken.

When a property is sold at a judgment lien auction, the primary purpose is to settle outstanding debts against the property, such as liens. Once those debts, including execution costs, are cleared, any remaining funds from the sale represents a form of compensation to the original property owner. This is consistent with property rights, where individuals have a claim to any gains from their own asset, especially after debts tied to that asset have been paid.

In this context, the other options do not receive the surplus because the local government generally collects fees or taxes but does not typically benefit from auction proceeds; the judgment creditor is already compensated through the execution of the lien, and a third party buyer is acquiring the property rather than benefiting from surplus funds post-sale. Thus, the rightful benefactor in this scenario is the original owner of the property.