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REFERENCE TITLE: real estate transfer affidavit; exemptions |
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State of Arizona House of Representatives Fiftieth Legislature Second Regular Session 2012
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HB 2689 |
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Introduced by Representative Brophy McGee
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AN ACT
amending sections 11‑1131 and 11‑1134, Arizona Revised Statutes; relating to real estate transfer affidavits.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 11-1131, Arizona Revised Statutes, is amended to read:
11-1131. Definitions
In this article, unless the context otherwise requires:
1. "Department" means the department of revenue.
2. "Legal entity" includes any partnership, corporation, business trust, joint stock company, trust, unincorporated organization, association, limited liability company, public benefit corporation, joint venture, member, partner, shareholder, trustee or trust beneficiary.
3. "Merger" includes any merger, combination, reorganization, consolidation or sale of all or substantially all of the equity interest or property or assets of a legal entity.
2. 4. "Value" means:
(a) In any case other than a gift, the amount of the full actual consideration that is paid or to be paid, including the amount of any lien or liens.
(b) In the case of a gift or a contract or deed with nominal consideration or without stated consideration, the estimated price the property would bring in an open market and under the prevailing market conditions in a sale between a willing seller and a willing buyer, both of whom are conversant with the property and with prevailing general price levels.
Sec. 2. Section 11-1134, Arizona Revised Statutes, is amended to read:
11-1134. Exemptions
A. The affidavit and fee required by this article do not apply to the following instruments:
1. A deed that represents the payment in full or forfeiture of a recorded contract for the sale of real property.
2. A lease or easement on real property, regardless of the length of the term.
3. A deed, patent or contract for the sale or transfer of real property in which an agency or representative of the United States, this state, a county, city or town of this state or any political subdivision of this state is the named grantor, and authorized seller, or purchaser.
4. A quitclaim deed to quiet title as described in section 12‑1103, subsection B or otherwise executed for no monetary consideration.
5. A conveyance of real property that is executed pursuant to a court order.
6. A deed to an unpatented mining claim.
7. A deed of gift.
B. The affidavit and fee required by this article do not apply to a transfer of title:
1. Solely in order to provide or release security for a debt or obligation, including a trustee's deed pursuant to power of sale under a deed of trust.
2. That confirms or corrects a deed that was previously recorded.
3. Between:
(a) Husband and wife, or ancestor of the husband and wife.
(b) Parent and child, with only nominal actual consideration for the transfer including natural or adopted children and their descendants.
(c) Step‑parents and step‑children.
(d) Grandparent and grandchild.
(e) Parent‑in‑law and child‑in‑law.
(f) Natural or adopted siblings.
4. On a sale for delinquent taxes or assessments.
5. On partition.
6. Pursuant to a merger of corporations legal entities.
7. By a subsidiary corporation legal entity to its parent corporation legal entity, from a parent legal entity to its subsidiary legal entity or among commonly controlled legal entities if any of the following applies:
(a) For no consideration or nominal consideration. or
(b) For the purpose of transferring real estate to a single purpose entity in order to obtain financing.
(c) In sole consideration for canceling, or surrendering the subsidiary's stock or transferring a stockholder, partnership or membership interest.
8. From a person to a trustee or from a trustee to a trust beneficiary with only nominal actual consideration for the transfer.
9. To and from an intermediary for the purpose of creating a joint tenancy estate or some other form of ownership.
10. From a husband and wife or one of them to both husband and wife to create an estate in community property with right of survivorship.
11. From two or more persons to themselves to create an estate in joint tenancy with right of survivorship.
12. Pursuant to a beneficiary deed with only nominal actual consideration for the transfer.
13. Of common areas to an association formed for the purpose of holding title to, managing or maintaining a commercial or residential owners' association.
14. From an owner to itself or a related entity for no or nominal consideration solely for the purpose of consolidating or splitting parcels.
15. Due to a legal name change.
C. Any instrument that describes a transaction that is exempt under this section shall note the exemption on the face of the instrument at the time of recording, indicating the specific exemption that is claimed.