Arizona Real Estate

Although many issues are associated with real estate law in Arizona, the following may be of particular importance:

Estates

A person’s interest in real property can be either: possessory or future, i.e. they may have a right to enjoy and use the land currently or in the future.  This right is called an “estate”.

Co-Ownership

In Arizona, title to real property can exist in various forms, including but not limited to: (1) joint tenancy, (2) tenancy in common, or (3) community property with right of survivorship.

Leaseholds

A person’s or company’s right to occupy land that they do not own is called a leasehold. In general, the term of a leasehold estate can vary significantly and can be either: (1) a term of years, (2) a periodic tenancy, (3) a tenancy at will, or (4) a tenancy at sufferance. In Arizona, leaseholds for residential property are governed by Arizona’s Residential Landlord Tenant Act.

Land Use

The use of real property can be limited through various legal controls, including but not limited to: (1) zoning law, (2) nuisance law, (3) easement law, or (4) eminent domain.

Limited Liability Entitles

The limited liability entity, or lack thereof, through which title to real property is held can significantly reduce the liability exposure of the real property’s owners. While there are various types of limited liability entities that are used to own real property in Arizona, the following are often used to do so: (1) limited liability company or “LLC”, (2) revocable trust, (3) irrevocable trust, or (4) corporation.

Transfers

In Arizona, a transfer of real property generally occurs via any one of various types of deeds, including but not limited to a: (1) warranty deed, (2) special warranty deed, or (3) beneficiary deed.

This brief overview of some important considerations associated with Arizona's Transaction Privilege Tax is by no means comprehensive. Always seek the advice of a competent professional when making important financial and legal decisions.

Arizona Real Estate AttorneyDouglas K Cook is an Arizona real estate lawyer with over 40 years of experience as a practicing attorney. Although Douglas K Cook's office is located in Mesa, Arizona, he represents clients throughout the Phoenix, Arizona Metropolitan area including the following east valley cities: Scottsdale, Paradise Valley, Tempe, Chandler, & Gilbert.

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Below are links to blog posts and other content related to Arizona Real Estate.

Arizona Deeds

A deed is a legal instrument used to convey ownership of property, often real property or rights associated therewith, and which is recorded with a county recorder's office. Generally, three types of deeds are used to convey property that is being sold in Arizona: 1) warranty deed, 2) special warranty deed, 3) quit claim deed.

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1031 Exchanges By The Numbers

Section 1031 of the Internal Revenue Code ("IRC") allows taxpayers to defer paying taxes associated with long-term capital gain on the sale of eligible property used for business or investment purposed by "exchanging" such property for like-kind property.

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What Is A 1031 Exchange?

Section 1031 of the Internal Revenue Code allows the owner(s) of certain property to defer federal taxes associated with gain or loss on the sale of such property by acquiring qualified similar property.

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Qualified Personal Residence Trust (QPRT)

A qualified personal residence trust, or QPRT, can reduce the federal estate tax associated with transferring property to heirs, reduce the federal gift tax associated with such transfer, and, provide asset protection.

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Arizona's Property Tax Exemption & Deferral

Arizona law permits the reduction, or elimination, of property tax obligations for qualified real property owners and also allows permits real property owners to defer payment of property taxes until the real property is sold or the real property owner dies.

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Real Estate LLC & Asset Protection

Real estate can be the source of substantial liabilities. Under certain circumstances, however, many of those liabilities can be eliminated by properly structuring ownership of real estate in a limited liability entity like a limited liability company (LLC).

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Arizona Beneficiary Deeds & Trusts: Creating Life Interests in Real Property at Death

On occasion, a decedent may desire to permit another to use real property after the death of the decedent but only for as long as the other person is alive, thereby restricting the other person (life tenant) from directing the transfer of the property at the life tenant's death. Although there are a number of different methods to create a lifetime interest in real property at a person's death, two of the simplest and most flexible methods are beneficiary deeds and trusts.

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Foreclosure, Deeds in Lieu, Short Sales, and Taxes

When the owner of real estate defaults on a real estate loan and the lender asserts its rights in the collateral (the real estate) by suit to foreclose or trustee’s sale, or where the debtor proposes to convey the property to the lender by deed in lieu of foreclosure or to sell the property in a short sale for less than is owed, the consummation of any of these transactions can have significant income tax consequences for the owner/debtor.

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