AZ Underwriting Summary

Search/Exam

• Minimum Search Requirements -- No state law sets minimum period of time for a title search but a title plant must typically have a minimum 40 year chain;

There is not a marketable record title act in Arizona.

• Plant or other search restrictions -- Yes if over 100k population in county. Department of Insurance Link. Title plant maintenance includes being a lessee or joint owner of a title plant. Alternatively, you may base your title policy on a title policy issued to you from a title insurer who does maintain such a title plant in the respective county or counties.

• Additional Requirements for REO Searches -- No

• Special Searches Required (Code, HOA, Utilities)? Included in normal search

• Survey Requirements
  • Purchase – no
  • Refinance - no

UPL

• Doc prep is UPL
• Arizona state law does not require attorney or abstractor involvement; however policies must be issued by a licensed issuing agent with Dept. of Insurance with an Arizona licensed title insurer.
  • Rule 31, Rules of the Supreme Court of Arizona
  • State Bar of Ariz. v. Arizona Land Title & Trust Co., 366 P.2d 1, 12 (Ariz. 1961)

Purchase Money Mortgage

Priority of purchase money mortgage is statutorily recognized. § 33-705

Spousal Joinder Requirements/Homestead

Joinder by non-title spouse not required by law. However Arizona is a community property state.

Arizona law provides for a $250,000 homestead exemption from forced sales. ARS 33-1101 and provides a mechanism for clearing judgments and other liens in contravention of the exemption, sometimes by notice, sometimes by action of the title company. ARS 33-964. Strict compliance with those mechanisms is required and documentation must be maintained in the closing file.

Time Limitations

• US Judgment Liens 20 years, renewable for 20 years

• State Court Judgment Liens 5 years unless renewed by affidavit or process per s. 12-1612. Governing statute is 12-1551
• 5 year limit does not apply to:
  • Criminal Restitution Orders per 13-805,
  • Child support, Spousal maintenance & related orders
  • Judgments for supervision fees or expenses related to care of juvenile per 8-241, 8-243
  • Civil judgments obtained by the state

• Child Support notice of deficiency -- Defense 10 years after emancipation of the youngest child (18, marriage, death) A.R.S. § 25-503(J)

• Federal Tax Liens 10 years (+30 days); can be refiled

• State Tax Liens

• Estate Tax Lien Federal 10 years

• State Inheritance Tax Liens

• Mechanics Liens; Time for filing lien: 120 day following completion of structure of improvements-"Completion"=30 days after final inspection or cessation of labor A.R.S. 33-993
  • filed lien lasts 6 months, if no law suit filed

• Financing Statements 5 years

• Mortgages A Mortgage or Deed of Trust may be consider satisfied after 10 years after the maturity date shown on the recorded Mortgage or Deed of Trust or 50 years form the date of recording if no maturity date is shown on the recorded instrument. A.R.S. 33-714.

• HOA Liens 2 years

• Condominium assessments 2 years

Odd Stuff

• Title insurer has statutory authority to release subject to the requirements in A.R.S. 33-707.

• Arizona Department of insurance is the governing body where both rates and forms are filed. DOI Website

• Usury endorsement is available. The statutory maximum rate of interest is 10% per annum, unless a different rate is contracted for in writing, in which case any rate of interest may be agreed upon. ARS 44-1201. Usury also constitutes a misdemeanor crime. ARS 13-2208.