Arizona

Arizona at a Glance

1. Mechanic's Lien Rules

Plain English

Arizona lien rights start with paperwork. Almost every claimant except wage laborers must serve a preliminary 20-day notice on the owner, the original contractor, and the construction lender, within 20 days after first furnishing to the jobsite. Notice served late protects only work done in the 20 days before it and afterward. The claimant then records a notice and claim of lien within 120 days after completion, or within 60 days after the owner records a notice of completion, and must sue within 6 months after recording. Priority relates back to when the claimant started work, but a construction lender's deed of trust recorded within 10 days after work began still comes first. Arizona also shields owner-occupants: no lien attaches to their home unless the claimant contracted with them directly.

Key Rules

Preliminary 20-day notice (A.R.S. 33-992.01). A prerequisite to the lien for everyone except persons performing actual labor for wages. Served on the owner, original contractor, construction lender, and the party the claimant contracted with, within 20 days after first furnishing. A late notice still works, but only for items furnished within 20 days before it was served and afterward (33-992.01(E)).

Recording (33-993(A)). Record a notice and claim of lien within 120 days after completion, or 60 days after recording of a notice of completion, and serve a copy on the owner.

Priority (33-992(A)). Liens are preferred to liens, mortgages, and encumbrances attaching after labor or materials commenced, and to those the lienholder had no notice of, except a construction lender's mortgage or deed of trust recorded within 10 days after labor or materials commenced.

Owner-occupants (33-1002). No lien on an owner-occupant's dwelling unless the claimant has a written contract directly with the owner-occupant. An owner-occupant is a natural person who held recorded title before the work began and lives, or intends to live, in the one- or two-family dwelling at least 30 days in the 12 months after completion, without intending to sell or lease it. A waiver of this protection is void.

Suit (33-998). The lien lapses 6 months after recording unless suit is brought and a notice of pendency recorded. The court may award attorney fees.

Bond (33-1004). A surety bond of 150% of the claim, recorded with the county recorder, discharges the lien.

Waivers (33-1008). Waivers must follow the statutory conditional and unconditional forms for progress and final payments.

Practice Points

1. Record the construction deed of trust within 10 days of the start of work, or earlier. After that, liens may jump ahead.
2. Collect the 20-day notices the construction lender received. They tell you who can lien.
3. Notice of completion shortens the lien window to 60 days. Recommend it on completed projects.
4. Owner-occupant homes: subcontractor liens generally fail. Confirm the owner-occupant facts.

Citations

• A.R.S. 33-992 (priority; 10-day construction lender rule): https://www.azleg.gov/ars/33/00992.htm
• A.R.S. 33-992.01 (preliminary 20-day notice): https://www.azleg.gov/ars/33/00992-01.htm
• A.R.S. 33-993 (120 days; 60 days after notice of completion): https://www.azleg.gov/ars/33/00993.htm
• A.R.S. 33-998 (6-month suit deadline): https://www.azleg.gov/ars/33/00998.htm
• A.R.S. 33-1002 (owner-occupied dwellings): https://www.azleg.gov/ars/33/01002.htm
• A.R.S. 33-1004 (bond at 150%): https://www.azleg.gov/ars/33/01004.htm

2. Execution and Notarization Requirements for Recording

Plain English

Arizona instruments must be acknowledged to be properly recorded with the county recorder, and an unrecorded deed or deed of trust is void as to creditors and later purchasers for value without notice. Arizona is a community property state: both spouses must sign to buy, sell, or encumber community real property. Arizona has no transfer tax; instead, an affidavit of property value goes with each deed. Arizona allows remote online notarization. An Arizona notary may notarize for a remotely located signer (A.R.S. 41-263). Escrow companies, not attorneys, handle most closings.

Key Rules

• Recording act (A.R.S. 33-412). Conveyances, deeds of trust, and mortgages are void as to creditors and subsequent purchasers for value without notice unless acknowledged and recorded.
• Acknowledgment required (33-411(B)). An instrument isn't lawfully recorded unless acknowledged. A recorded instrument with a defect in the acknowledgment certificate is still treated as lawfully recorded (33-411(C)), and an instrument acknowledged under another state's law may be recorded (33-411(D)).
• Community property (A.R.S. 25-214(C)). Joinder of both spouses for any acquisition, disposition, or encumbrance of real property (except unpatented mining claims and leases under one year).
• Affidavit of property value (A.R.S. 11-1133). The recorder must refuse a deed or sale contract without a complete affidavit unless it notes an exemption under § 11-1134. There is no state or county transfer tax. The Arizona Constitution bars any new tax or fee on the sale or transfer of real property that was not in effect on December 31, 2007 (art. IX, § 24).
• Remote online notarization (A.R.S. 41-263). A notary located in Arizona may notarize for a remotely located individual using communication technology.

Practice Points

1. Married seller or borrower? Get both spouses' signatures, or a disclaimer deed from the non-titled spouse at purchase.
2. Check the affidavit of property value for exemption codes and accuracy.
3. HOA foreclosure titles can't be set aside just because the price was grossly inadequate (Windrose Estates HOA v. Wright, Nos. 2 CA-CV 2024-0074 and 2025-0058 (Ariz. Ct. App. Dec. 15, 2025), holding that A.R.S. 33-1807 displaces that common-law power). Still check which liens the sale was subject to.

Citations

• A.R.S. 33-411 (acknowledgment required to record): https://www.azleg.gov/ars/33/00411.htm
• A.R.S. 33-412 (unrecorded instruments): https://www.azleg.gov/ars/33/00412.htm
• A.R.S. 25-214 (community property; joinder): https://www.azleg.gov/ars/25/00214.htm
• A.R.S. 11-1133 (affidavit of property value): https://www.azleg.gov/ars/11/01133.htm
• A.R.S. 41-263 (remote notarization): https://www.azleg.gov/ars/41/00263.htm
• Windrose Estates HOA v. Wright (Ariz. Ct. App. 2025): https://www.courtlistener.com/opinion/10758336/windrose-estates-homeowners-association-v-justin-t-wright-midland/

3. Securing Future Advances

Plain English

We did not find a general Arizona statute that gives future advances priority from recording, the way Ohio's, Pennsylvania's, or Colorado's statutes do. Arizona practice relies on the deed of trust's future advance clause.

Key Rules

• Future advance priority. No statute confirmed.
• Construction loans (33-992(A)). The construction lender's deed of trust recorded within 10 days after work begins keeps priority over mechanics' liens.
• Payoff demands (A.R.S. 33-715). Lender must deliver a payoff demand statement within 14 days; a demand made under § 33-420.01 must state that the requester is acting as the borrower's agent and that the line of credit is to be suspended.
• HELOC suspension (A.R.S. 33-420.01). On a payoff demand request from a licensed escrow agent, the lender must suspend the revolving line for at least 45 days, so the borrower can't draw more.

Practice Points

1. HELOC payoffs: have the escrow agent send the statutory payoff demand, which suspends the line for at least 45 days (33-420.01).
2. Junior liens recorded after the deed of trust: ask whether later advances are obligatory.
3. Construction loans: confirm the 10-day recording window (section 1).

Citations

• A.R.S. 33-715 (payoff demands): https://www.azleg.gov/ars/33/00715.htm
• A.R.S. 33-420.01 (suspension of line of credit): https://www.azleg.gov/ars/33/00420-01.htm

4. Subdivision Statutes and Regulations

Plain English

Arizona regulates subdivisions in two ways. For sales, the Department of Real Estate requires a subdivider to file a notice and get a public report before selling lots in a "subdivision" (land divided for sale or lease into 6 or more lots, with exceptions such as lots of 36 acres or more). Sales made without a required public report can be voidable by the buyer. For land use, cities and counties approve plats, and counties may review land divisions of 5 or fewer lots (any 10 acres or smaller) and must approve qualifying splits within 30 days or they're deemed approved. Illegal "wildcat" lot splits in rural areas are a recurring title and access problem.

Key Rules

• Notice and public report (A.R.S. 32-2181, 32-2183). Before offering subdivided lands, the subdivider notifies the commissioner; a public report is issued unless there are grounds for denial. A sale or lease made without a required public report is voidable by the buyer (§ 32-2183). "Subdivision" means land divided or proposed to be divided for sale or lease into six or more lots, parcels or fractional interests, and includes stock cooperatives and residential condominiums (§ 32-2101).
• County land divisions (A.R.S. 11-831). Counties may adopt review for divisions of 5 or fewer lots, any of which is 10 acres or smaller. A qualifying application must be approved; if not reviewed within 30 days, it is deemed approved.
• Municipal plats (A.R.S. 9-463.01). Every municipality's legislative body must regulate the subdivision of land within its boundaries.

Practice Points

1. New lot from a split? Check county approval and recorded legal access.
2. Subdivision sales: confirm a public report was issued for lots sold by a developer.
3. Rural parcels: confirm legal and physical access; § 11-831 requires a title report or similar showing legal access for county-approved splits.

Citations

• A.R.S. 32-2181 (notice of intention to subdivide): https://www.azleg.gov/ars/32/02181.htm
• A.R.S. 32-2183 (public reports; unlawful sales): https://www.azleg.gov/ars/32/02183.htm
• A.R.S. 11-831 (county review of land divisions): https://www.azleg.gov/ars/11/00831.htm
• A.R.S. 32-2101 (definitions): https://www.azleg.gov/ars/32/02101.htm
• A.R.S. 9-463.01 (municipal subdivision regulation): https://www.azleg.gov/ars/9/00463-01.htm

5. Title Premium Rates

Plain English

A filing must be on file at least 30 days before it takes effect. An insurer can file through a licensed rating organization, and can let its agents file their own rates. So premiums vary by company and agent. Escrow in Arizona is a separately licensed business overseen by DIFI, and escrow companies (often affiliated with title agencies) handle most closings.

Key Rules

• Rating organizations and agents (20-376(B)). An insurer may file through a licensed rating organization, and may allow its agents to file directly.
• Waiting period (20-376(D)). Each filing must be on file at least 30 days before it becomes effective, The director may extend that by up to 15 days on notice, or let a reviewed filing take effect sooner.
• Escrow agents (A.R.S. 6-813, 6-814). A person must be licensed before engaging in the escrow business.
• No deviation (A.R.S. 20-379). An insurer or agent may not charge other than its filed rates; each deviation is subject to a civil penalty.

Practice Points

2. Escrow funds follow DIFI rules. Confirm good funds before disbursing.
3. Charge only the filed rate. Deviations are prohibited and penalized (A.R.S. 20-379).

Citations

• A.R.S. 20-376 (filing title insurance rates): https://www.azleg.gov/ars/20/00376.htm
• A.R.S. 20-379 (deviations): https://www.azleg.gov/ars/20/00379.htm
• A.R.S. 6-813 (escrow agent license): https://www.azleg.gov/ars/6/00813.htm

6. Recording Taxes & Fees on Deeds and Mortgages

Plain English

Arizona has no transfer tax and no mortgage tax. Instead, most deeds must be accompanied by an Affidavit of Property Value. Recording fees are a flat $30 per instrument (A.R.S. 11-475).

Key Rules

(a) Deed transfer, conveyance or excise tax

• None. The Arizona Constitution bars new taxes on the sale or transfer of real property (art. IX, § 24).
• Affidavit of Property Value. Required with most deeds and contracts for sale, with a small fee (A.R.S. § 11-1133); exemptions are in § 11-1134.

(b) Mortgage, indebtedness or intangible tax

• None. Arizona has no mortgage, indebtedness or intangible tax on recording a mortgage or deed of trust, so future advances, credit lines, refinances and modifications carry no state recording tax (only recording fees).

(c) Other recording taxes and fees

• Flat recording fee of $30 per instrument (A.R.S. § 11-475(A)(1)); $15 when a government party records.

Practice Points

1. Make sure the Affidavit of Property Value is complete, or the recorder will reject the deed.
2. No mortgage tax on any refinance or HELOC.

Citations

• Ariz. Const. art. IX, § 24
• A.R.S. §§ 11-1133, 11-1134 (affidavit of property value): https://www.azleg.gov/ars/11/01134.htm
• A.R.S. § 11-475 (recording fees): https://www.azleg.gov/ars/11/00475.htm