House of Representatives

SB 1328

recorded liens; invalid documents

Sponsor: Senator Leff

DP	Committee on Counties, Municipalities and Military Affairs
X	Committee on Commerce
	Caucus and COW
	House Engrossed

SB 1328 requires consensual liens not be recorded unless accompanied by the debtor’s signature acknowledging the filing of the lien.

History

Liens can be consensual or non-consensual. Consensual liens are imposed by a contract between the creditor and the debtor such as mortgages and car loans. Non-consensual liens typically arise by statute such as tax liens, attorney’s liens and mechanic’s liens.

A.R.S. Section 33-421 specifies that nonconsensual liens that are not recorded by a governmental entity or political subdivision or agency, a validly licensed utility or water delivery company, a mechanics’ lien claimant or an entity created under covenants, conditions, restrictions or declarations affecting real property is not valid unless the lien is accompanied by an order of judgment from a court of competent jurisdiction authorizing the filing of the lien.

Provisions

· Prohibits nonconsensual liens other than liens recorded by governmental entities or political subdivisions from being recorded unless the lien is accompanied by an order or judgment from a court or competent jurisdiction authorizing the filing of the lien.

· Requires that consensual liens be accompanied by the notarized signature of the debtor on a document acknowledging the filing and recording of the lien before it can be recorded.

· Specifies that a recording officer or county is not liable for accepting any lien.

· Makes technical and conforming changes.

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Forty-eighth Legislature

First Regular Session  2          February 26, 2007

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