What is an Affidavit of Property Value in Arizona?

Legal Documents - Business Papers

Affidavit of Property Value

An Affidavit of Property Value is form created by the Arizona Department of Revenue, and is required by law (ARS § 11-1133) to be recorded simultaneously with any deed transfer, unless you have a proper exemption code.

What exactly does the Affidavit of Property Value do?

Sometimes referred to as simply an “Affidavit of Value” or simply “APV”, the purpose of the Affidavit is to disclose information about the sale of real property. Whenever property is sold, the actual transfer is made public record by recording a deed. When the deed is recorded with the County Recorder‘s Office, an APV must be recorded at the same time to disclose information such as:

  • Parcel Number
  • Seller/Buyer Name and Address
  • Relationship between Buyer and Seller (if any)
  • Property Address
  • Where to send the Property Tax Bill
  • Type of property (Single Family Residence, 2-4 Plex, Commercial, etc)
  • Sales Price
  • Method of Financing
  • Any Personal Property included in the sale
  • Any Solar / Energy Efficient Components

After recording, this information is made public record. It is available for anyone to see, and is used as a basis to determine property taxes, establish value for comparable sales and more.

How do I file it?

  1. The form must be filled out completely, signed and notarized by both the Seller and Buyer (or their respective Agents) and attached to the deed when submitted to the county for recordingNote: If you’re mailing in the Deed and Affidavit for recording, make sure you first check to see what the recording fees will be! The cost is usually based on the number of pages and whether or not an Affidavit of Property Value is required.

When is the Affidavit not required?

There are several scenarios that exempt the requirement of recording an Affidavit of Property Value. Here’s some of the most common situations you don’t have to file an APV, and the applicable exemption codes:

  • A transfer that confirms or corrects a previously recorded deed(ARS § 11-1134 B-2)
  • Transferring property between parent and child or husband and wife, with only nominal consideration (payment) for the transfer. (ARS § 11-1134 B-3)
  • Transferring property from a person to a Trustee, or from a Trustee to a trust beneficiary with only nominal consideration for the transfer. (ARS § 11-1134 B-8)
  • Adding a spouse to create an estate in “Community Property with Right of Survivorship“. (ARS § 11-1134 B-10)
  • When recording a Beneficiary Deed(ARS § 11-1134 B-12)

These are only some of the more common scenarios. A complete list of the exemption codes can be found in Arizona Revised Statutes. Or, here’s a PDF file with the exemptions along with a short explanation of each.

So what do I actually type on the deed?

(“Help, my deed was rejected!”)

If you have determined that your deed transfer is exempt, simply type or legibly print on the face of the deed something like this:

This transfer is being made to establish an estate in Community Property with Right of Survivorship with only nominal consideration for the transfer  and the Affidavit of Property Value is exempt pursuant to ARS § 11-1134″

Really, you can even shorten that to something like Affidavit Exempt per ARS 11-1134-______”, inserting the proper code.

Where do I find the form?

You can either download a blank copy of the DOR FORM 82162 (01/2012) Affidavit of Property Value (click to download), or we will be happy to assist you in the preparation and recording of your Deed and Affidavit! You can check out our online product page, give us a call at (855) DOC-EASY or send us an email for more info.

 

What is a Road Maintenance Agreement?

What is a Road Maintenance Agreement?

 

In recent months, we’ve noticed a lot of requests for Road Maintenance Agreements (also referred to as Private Road Maintenance Agreements – in this article we might call it an “RMA”) here at docprepper.com. We were curious to know why the uptick, so we consulted with Shari Nestor at Professional Escrow Resources (our Arizona Court Certified Legal Document Preparer #81407,) and she helped shed some light on the subject:

Well, you the Road Maintenance Agreement is often a lender requirement. When you’re creating an RMA for the first time and trying to get all of your neighbors on the same page, it can be an incredible hassle! However, if access to your property is through a private road and don’t have a Road Maintenance Agreement in place, it’s almost always a good idea!”

When we take a closer look at this abstruse document, they demystify quite quickly.

Who and what do Road Maintenance Agreements apply to?

In short, a Road Maintenance Agreement applies to a private road. So what is a private road, exactly? Here’s the Free Legal Dictionary definition:
A private road is often established because an individual needs to gain access to land; such a road can cross another person’s property. A private road can be used by the general public and is open to all who wish to use it, but it primarily benefits those at whose request it was established. Unlike highways that are cared for by the public at large, private roads are maintained at the expense of the private individuals who requested the road.
The last sentence of the definition points out what the Road Maintenance Agreement must address and who must agree to the terms, i.e.: Private Road Maintenance and the private individuals who benefit from it.

Keep in mind that once the agreement is established, it runs in perpetuity with the land. So, the responsibilities that are agreed to become the responsibilities of all future owners. That’s why these things show up on a Preliminary Title Report, and sellers are required to disclose whether or not an agreement is in place by laws such as A.R.S. §33-422. If you’re buying property with a Private Road Maintenance Agreement attached to it, you have the right to know. You’re going to be responsible for complying with it as the new owner!

Why are Private Road Maintenance Agreements desired?

There is sound rationale for having an RMA in place, and it manifests itself in many forms. The root of it all is access to the property.
Reasonable access to the property must be available at all times. If the road is not maintained, it becomes impassable. The lack of access can affect the value of the home. Court battles might arise, with costs to everyone involved.

When are Road Maintenance Agreements required?

Increasingly often, to be sure!  FHA loans have requested them for some time, and as more and more lenders mimic HUD guidelines their prevalence continues to grow. Here are Fannie Mae’s current requirements in a nutshell:

If the property is located on a community-owned or privately owned and maintained street, Fannie Mae will now an adequate, legally enforceable agreement or covenant for maintenance of the street. The agreement or covenant should include the following provisions and be recorded in the land records of the appropriate jurisdiction:

  1. Responsibility for payment of repairs, including each party’s representative share.  
  2. Default remedies in the event a party to the agreement or covenant fails to comply with his or her obligations and
  3. The effective term of the agreement or covenant which in most cases should be perpetual and binding on any future owners.   

There are, of course, exceptions and workarounds to these requirements. For example, if there is a statutory provision that defines the responsibilities for property owners to maintain their private roads Fannie Mae will doesn’t require a separate agreement. However, that doesn’t mean that all lenders will follow suit. And, it certainly doesn’t hurt to have an agreement that addresses the maintenance issues the way you want them to be addressed!

Okay, so how do put a Private Road Maintenance Agreement in place?

Although it can be quite complicated, here’s the breakdown of what needs to be done:

  1. Define each homeowner’s responsibility for the road maintenance.
  2. Define each homeowner’s responsibility for the road repairs.
  3. Define a remedy in case of default, or failure to comply.
  4. Define the effective term of the agreement (binding, and in perpetuity.)
  5. Have all owners sign the agreement.
  6. Attach legal descriptions for each property.
  7. Record the document with the appropriate county.

This is admittedly a simplified breakdown of what to do, but all the elements are there. Of course, docprepper.com would be happy to assist you in preparing and recording your Road Maintenance Agreement. You can always contact me directly via phone (855 DOC-EASY) or email with any additional questions, or to get started with your agreement. Also, I’ll monitor the comments section below and be happy to answer any questions there! Thanks!

Who actually prepares my documents?

Docprepper.com and Professional Escrow Resources

Who actually prepares your docs?

When you get Legal Documents prepared from docprepper.com, we do all the work. You’re not just “buying forms” you end up having to complete yourself… you’re getting everything done for you. We work with Professional Escrow Resources, LLC, Certified Legal Document Preparers (Arizona Supreme Court, Board of Legal Document Preparers, Certificate #81407).

Aaron Scott, Operations Manager for PER, has this to say about our partnership:

 

Aaron Scott of Professional Escrow Resources

Aaron Scott, Professional Escrow Resources

There is no such thing as the “Typical” customer for us.  Every customer has their own set of individual needs, and usually a few minutes on the phone is all it takes to answer any questions they may have. There’s over 50 years of combined experience in my office. That advantage, combined with docprepper.com‘s streamlined ordering, processing and recording systems gives the customer exactly what they need. We can have them recorded within hours.  The truth is, nobody else can do this. Together, we’ve forged an amazing resource for the consumer.”

 

Shari Nestor, President of PER (CLDP #81309), has been preparing legal documents for over 30 years! She pretty much sums it up:

[Photo of Shari Nestor]

Shari Nestor, President of PER

At PER, we do things right! That may sound simple, but I can’t stress the importance of that fact. As an Expert Witness in the field of Title and Escrow, I am often asked to submit my opinion to the court about how things are supposed to be done in real estate transactions.  It’s amazing how sometimes little things can make such a huge difference when you’re dealing with legal documents. These are pieces of paper we use to deal with our homes, our children’s homes, our investments… our livelihood! I’ve been doing this my whole life. It’s not just my job, it’s my passion.

If you have any questions about Real Estate Document Preparation, just let us know!

 

Quitclaim Deed and Acceptances: Joint Tenancy vs Tenancy in Common

What is an “Acceptance” to my Quitclaim Deed?Don't Forget the Attachment!

 

Getting it done right

It’s easy to have someone prepare and record a deed to transfer title of a property… but it’s not always easy to choose the right deed, not to mention the various acceptances and attachments that might be necessary. States have diverse laws that govern the transfer of Real Property, and navigating the State’s Revised Statutes is frustrating to say the least.

Quitclaim deed transfer to two unmarried people

For example, let’s say you’re not married, own property in Arizona, and want to add someone to title with you. If anything should happen to you, you want to make sure the property goes to the other party, and vice versa. You ask around and find out you can do this with a Quitclaim Deed. So, you find one on the internet, fill it out and record it. You’re done, right? It’s not always that simple.

Acceptance of “Joint Tenants with Right of Survivorship

Nobody told you that you have to accept the interest as “Joint Tenants with Right of Survivorship if you want to avoid probate should something happen to one of the new owners.  In our scenario, the way the grantee should hold title was never addressed, and in Arizona it is presumed the interest would be even split as “Tenants in Common”. You now both own the property 50% / 50%. This may sound like what you wanted, but it can be misleading.

This means you both now have a 50% interest in the property. If something happens to either one of you, that person’s 50% interest will go into probate… You may end up with half of your property transferring to the other party’s next of kin, cutting you out completely! Now you are unable to sell your whole house unless somebody else agrees to it. Needless to say, this was not your original intent.

I did it wrong! Now what?!?!

As long as you catch it before someone dies, not to worry! You can simply have both of you sign a new deed to each other, this time using the correct Acceptance of Joint Tenants with Right of Survivorship. If, however, your partner already passed you must go through probate to resolve the issue.

docprepper.com uses Certified Legal Document Preparers with real estate experience. We can explain all of the different options so you can choose the proper instrument to convey title. Just call us toll free at (855) DOC-EASY, email to [email protected] or browse our website.