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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
judgments; liens; homestead
Purpose
Increases the homestead exemption from $150,000 to $250,000. Requires a civil judgment to become a lien on a judgment debtor's real property, including homestead property. Applies the exemption from the 10-year judgment renewal requirement to all civil judgments obtained by the state.
Background
Arizona’s homestead exemption exempts up to $150,000 of a person’s equity in their dwelling from attachment, execution or forced sale. The exemption applies to a person’s house and land, condominium or cooperative, mobile home or mobile home and land. A person or married couple may only claim one homestead exemption and must reside in the home for which the exemption is claimed (A.R.S. § 33-1101).
A judgment creditor may seek payment of debts owed by filing a judgment in the office of the county recorder in the county where the judgment creditor desires the judgment to become a lien on a judgment debtor's real property (A.R.S. § 33-961). Once recorded, the judgment becomes a lien on the judgment debtor's real property for 10 years after the judgment is filed, unless the property is exempt from execution. A civil judgment lien obtained by the state remains in effect until satisfied or lifted. A recorded judgment may not become a lien on homestead property and any person entitled to a homestead on real property holds the homestead property free and clear of any judgment lien, even when the value of the property exceeds the amount of the homestead, with certain exceptions (A.R.S. §§ 33-964 and 33-1103).
A party in whose favor a judgment is given may have a writ of execution or other process issued for its enforcement. The judgment must be enforced within 10 years after entry of the judgment or within 10 years after any renewal of the judgment. A judgment may be renewed by affidavit (A.R.S. § 12-1551).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Increases the homestead exemption from $150,000 to $250,000.
2. Applies the exemption from the 10-year judgment renewal requirement to civil judgments obtained by the state that are:
a) entered on or after September 13, 2013; or
b) entered before September 13, 2013, and that were current and collectable under applicable laws on September 13, 2013.
3. Requires, retroactive to all judgments without regard to when the judgment was recorded, a civil judgment to become a lien on a judgment debtor's real property, including homestead property, whether the property is then owned by the judgment debtor or is later acquired, until the lien is satisfied or lifted.
4. Exempts real property subject to the homestead exemption from involuntary sale under a judgment or lien, rather than from process and sale under a judgment or lien.
5. Excludes, from the involuntary sale exemption, a recorded civil judgment or other nonconsensual lien, if the debtor's equity exceeds the homestead exemption.
6. Removes the attachment of a homestead from the exemptions applicable to a homestead.
7. Removes the prohibition on a recorded judgment becoming a lien on homestead property and removes the specification that any person entitled to a homestead on real property as provided by law holds the homestead property free and clear of a judgment lien.
8. Makes technical and conforming changes.
9. Becomes effective on the general effective date.
House Action
WM 2/10/21 DP 10-0-0-0
3rd Read 3/1/21 52-0-8
Prepared by Senate Research
March 8, 2021
MG/gs