ARIZONA STATE SENATE
Phoenix, Arizona
Extends to the general
public, protection already afforded to public officials and employees against
nonconsensual liens that are not accompanied by a court order.
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, and were deemed a
form of harassment by Laws 1997, Ch 191.
This legislation
required that any nonconsensual lien that was filed against real property
belonging to a public official or employee must be accompanied by an order or
judgment form a court of competent jurisdiction to be valid. Without the accompanying
judgement, the nonconsensual lien would not have the force or effect of law. After the passage of this legislation these
kinds of filings were considerably reduced according to the County Recorder’s
Office and the Land Title Association of Arizona (LTAA).
The only
nonconsensual liens that are considered valid currently are those recorded in
conformity to Arizona law by 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. However, nonconsensual liens can still be filed
against members of the general public who own Arizona real estate. Most often, title searches reveal to the
property owner that there is a lien against his or her property and, according
to LTAA, a great deal of effort is required to
prove the invalidity of a nonconsensual lien.
Property owners are often put to great expense and land transactions are
held up or lost while title companies attempt to clear an invalid lien. According to estimates by the LTAA approximately 100
of these invalid liens are filed against members of the general public each
year in Maricopa County.
There is no fiscal impact to
the state general fund.
1.
Extends to the general public the
protections against nonconsensual liens public officials and employees enjoy.
2.
Provides
for a general effective date.
Prepared by Senate Staff
January 26, 2000