House of Representatives

SB 1347

nonconsensual liens; invalidity

Sponsors: Petersen, Bee et al

 

DPA

Committee on Judiciary Committee

DPA

Caucus and COW

 

DPA

As Passed the House

X

As Transmitted to the Governor

 

SB 1347 expands the provision declaring most nonconsensual liens to be invalid and without the force or effect of law to apply to all persons.  Currently, these nonconsensual liens are invalid only if they are against a public officer’s or a public employee’s property.

 

History

 

Before 1997, Arizona law did not prohibit individuals and groups from filing commercial and common law liens against any owner of Arizona real estate.  According to the Uniform Commercial Code, these types of liens are fraudulent if not signed by both parties.

 

In 1997, the Arizona Legislature declared nonconsensual liens against a public officer or employee a form of harassment.  The legislation further declared such liens invalid unless accompanied by a court order or judgment.  However, nonconsensual liens against persons who are not public officers or employees are still valid (Laws 1997, Ch. 191).

 

The only nonconsensual liens that are considered valid without a court order or judgment currently are those recorded in conformity to Arizona law by a governmental entity or political subdivision or agency, a validly licensed utility or water delivery company, a mechanic’s lien claimant or an entity created under covenants, conditions, restrictions or declarations affecting real property.

 

Provisions

·        Expands the provision declaring most nonconsensual liens to be invalid and without the force or effect of law to apply to all persons.

·        Eliminates the provision that states if a lien is accepted for filing and is signed by the attorney general or county attorney, the lien is invalid.

·        Makes conforming changes.

 

 

 

 

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44th Legislature                    Analyst Initials _______

Second Regular Session                   April 17, 2000

 

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