Arizona Tax Lien Property

[Kevin S.]

How many years does one have to wait from the issuance of an Arizona treasurer's deed before a tax lien property can no longer be challenged in the courts and title insurance can be obtained?

[Jerry K.]

@Kevin S. - I'm not an attorney or a title expert. You have two separate items to address;

1) Time-frame for Treasurer's deed to be challenged in court.

2) Time-frame for Title insurance after a tax lien foreclosure/Treasurer deed conveyance.

 In regards to the first point - here is the Arizona statute (section "B" is the most pertinent):

42-18204.  Judgment foreclosing right to redeem; effect

A. In an action to foreclose the right to redeem, if the court finds that the sale is valid and that the tax lien has not been redeemed, the court shall enter judgment:

1. Foreclosing the right of the defendant to redeem.

2. Directing the county treasurer to expeditiously execute and deliver to the party in whose favor judgment is entered, including the state, a deed conveying the property described in the certificate of purchase.

B. After entering judgment the parties whose rights to redeem the tax lien are thereby foreclosed have no further legal or equitable right, title or interest in the property subject to the right of appeal and stay of execution as in other civil actions.

C. The foreclosure of the right to redeem does not extinguish any easement on or appurtenant to the property.

D. The foreclosure of the right to redeem does not extinguish any lien for an assessment levied pursuant to title 48, chapter 4, 6, 14 or 18, or section 9-276

I recently read a case where a company foreclosed on an AZ property and received the deed through tax lien foreclosure. However, a few months later the original owners appealed saying they were not properly notified of the original Intent to foreclose since the lien holder (their lawyers) had only sent the notices to an address that the previous owner had sold 5 years earlier. When the actual foreclosure case was started the original owners did receive the actual foreclosure documents sent to a new address - but never the original Intent to foreclose. The appeal was successful and the foreclosure judgment was rendered void - returning the property to the original owners.

So I don't know of an actual time period that an appeal can take place on a tax lien foreclosure in Arizona. I could not find it in the statutes. Any AZ tax foreclosure lawyers in the BP house?

Basically the same type of answer for the second part of the question. I think it may be up to the individual title company on when they want to issue title insurance on a Treasurer's deed in AZ. 

I realize I've given no solid answer here - so I hope someone else can provide more of an answer.