JUDGMENT LIENS
Read the
WARNING! first.
In Arizona, a creditor can
obtain a non-voluntary lien on a debtor's real property by first obtaining
a judgment against the debtor and then by properly recording the judgment
in every county in which the debtor owns, or may own, real property.
Even real property that is obtained after the date the judgment is
recorded becomes subject to the lien.
There are substantial
penalties for wrongfully placing a lien on someone's property, so care
must be taken before anything is done that might place a "cloud on title."
A judgment lien does not
apply to homestead property, but it does apply to the non-exempt portion
of a debtor's residence. A judgment lien is good for a limited
period of time. If proper action is taken in a timely manner, the
lien may be renewed.
An Arizona statute requires
that a "Money Judgment Information Form" be recorded with the judgment, in
order to give title companies and others sufficient information about the
identity of the creditor and debtor so that the lien is not mistakenly
applied to someone with a name similar to the debtor's name.
Once a judgment has been
satisfied (paid off) the creditor must file and record a document showing
the satisfaction of the judgment. This document has the legal effect
of removing the lien.
The Arizona statute that
provides for judgment liens is Arizona Revised Statutes, Section 33-964,
which states:
|
33-964. Lien of
judgment; duration; exemption of homestead; acknowledgment of
satisfaction by judgment creditor
A. Except as provided
in sections 33-729 and 33-730, from and after the time of recording as
provided in section 33-961, a judgment shall become a lien for a
period of five years from the date it is given, on all real property
of the judgment debtor except real property exempt from execution,
including homestead property, in the county where the judgment is
recorded, whether the property is then owned by the judgment debtor or
is later acquired. A judgment lien for support, as defined in section
25-500, and associated costs and attorney fees remains in effect until
satisfied or lifted.
B. A recorded judgment
shall not become a lien upon any homestead property. Any person
entitled to a homestead on real property as provided by law holds the
homestead property free and clear of the judgment lien.
C. A judgment of the
justice court, municipal court, superior court or United States court
which has become a lien under this article, shall, immediately on the
payment or satisfaction of the judgment, be discharged of record by
the judgment creditor or the judgment creditor's attorney by recording
a satisfaction of judgment with the county recorder of the county in
which the judgment is recorded. The judgment creditor or the judgment
creditor's attorney shall enter a notation of satisfaction on the
docket of the clerk of the superior court of each county where the
judgment has been entered or docketed, and in a like manner enter a
notation of satisfaction on the docket of the clerk of the United
States district court. |
If you need assistance with
an Arizona judgment lien, contact us at
928/445-3230. |
