Key Takeaways
- Arizona is a community property state where property acquired during marriage is owned equally by both spouses
- Arizona recognizes joint tenancy with right of survivorship (must be expressly stated)
- Community property with right of survivorship is available as a form of ownership for married couples
- Arizona uses the deed of trust as the primary security instrument for mortgages
- Foreclosures are typically non-judicial through trustee sale, which is faster than judicial foreclosure
Arizona Property Ownership and Rights
Important: This content covers Arizona-specific property law. You should complete the National Real Estate Exam Prep first, as general property concepts are tested on the national portion.
Arizona has specific rules for property ownership, particularly for married couples.
Community Property State
Arizona is one of 9 community property states. This means:
| Property Type | Ownership |
|---|---|
| Acquired during marriage | Owned equally by both spouses |
| Separate property | Owned by one spouse individually |
| Commingled property | May become community |
Community Property Rules
Property acquired during marriage is community property unless:
- It was a gift to one spouse
- It was inherited by one spouse
- It was owned before marriage (separate property)
- The parties agreed it is separate
Both Spouses Must Sign
For community property:
- Both spouses must sign to sell or encumber
- This applies even if only one name is on title
- Protects non-titled spouse's interest
Types of Ownership
Sole Ownership
One person owns the property:
- Full control
- Passes through probate at death
Tenancy in Common
Multiple owners with:
- Separate, undivided interests
- Can be unequal shares
- No right of survivorship
- Each share passes through owner's estate
Joint Tenancy with Right of Survivorship
Multiple owners with:
- Equal shares
- Right of survivorship (surviving owners get deceased owner's share)
- Must be expressly stated in the deed
- Avoids probate
Arizona Rule: To create joint tenancy, the deed must expressly state "with right of survivorship."
Community Property with Right of Survivorship
Special form for married couples combining:
- Community property rules
- Right of survivorship
- Must be expressly created
- Avoids probate
| Feature | Regular Community | CPWROS |
|---|---|---|
| Equal ownership | Yes | Yes |
| Both must sign | Yes | Yes |
| Survivorship | No | Yes |
| Probate | Required | Avoided |
Deed of Trust
Arizona uses the deed of trust as the primary security instrument:
| Party | Role |
|---|---|
| Trustor | Borrower (gives deed) |
| Trustee | Neutral party (holds deed) |
| Beneficiary | Lender (receives payments) |
Power of Sale
The deed of trust includes a power of sale clause allowing:
- Non-judicial foreclosure
- Trustee sale if borrower defaults
- Faster than court foreclosure
Foreclosure
Non-Judicial Foreclosure (Trustee Sale)
Most common in Arizona:
- No court involvement
- Faster process (about 90 days)
- Trustee conducts sale
- Buyer gets trustee's deed
Judicial Foreclosure
Less common:
- Court supervised
- Longer process
- Deficiency judgment possible
- Used for some circumstances
Arizona is a community property state. What does this mean?
What type of foreclosure is most common in Arizona?