Arizona · owner financing
Arizona owner financing, explained.
A plain-English guide to owner financing (also called seller financing) in Arizona — statute, recording, default remedies, interest caps, and where deals actually happen.
A.R.S. § 33-741 to § 33-749 (forfeiture of contracts for conveyance of real property)
Recordable with the county recorder under A.R.S. § 33-411 et seq. No fixed deadline, but recording is essential for constructive notice; standard county fees apply.
Statutory forfeiture under A.R.S. § 33-741 et seq. with cure periods that scale with the percentage of purchase price paid: 30 days (less than 20% paid), 60 days (20-30%), 120 days (30-50%), 9 months (50%+). Notice must be recorded and served. Alternative judicial foreclosure available.
Is owner financing legal in Arizona?
Expressly recognized and codified. Arizona has one of the most developed forfeiture statutes for installment land contracts in the nation, calling them 'contracts for conveyance of real property.'
How do you record a owner financing agreement in Arizona?
Recordable with the county recorder under A.R.S. § 33-411 et seq. No fixed deadline, but recording is essential for constructive notice; standard county fees apply.
What happens if the buyer defaults?
Statutory forfeiture under A.R.S. § 33-741 et seq. with cure periods that scale with the percentage of purchase price paid: 30 days (less than 20% paid), 60 days (20-30%), 120 days (30-50%), 9 months (50%+). Notice must be recorded and served. Alternative judicial foreclosure available.
What is the maximum interest rate?
10% per annum default (A.R.S. § 44-1201); parties may contract for any rate in writing - effectively no cap by written agreement.
What disclosures are required?
Seller Property Disclosure Statement (SPDS) - customary, not strictly statutory; lead-paint federal disclosure; affidavit of disclosure for unsubdivided land in unincorporated areas (A.R.S. § 33-422).
Who's protected — buyer vs. seller
Buyer protections
Graduated cure periods (up to 9 months) under § 33-741 et seq. - among the most buyer-friendly forfeiture frameworks; recorded notice; statutory affidavit-of-disclosure for rural land.
Seller protections
Statutory non-judicial forfeiture is fast and cost-effective when buyer has minimal equity; alternative judicial remedies; specific performance.
Where in the state do these deals happen?
Very common for rural and unsubdivided land, recreational parcels in northern AZ, owner-financed homes in smaller markets, lots in unincorporated counties.
Arizona cities
Per-city market notes for owner financing buyers and sellers.
Notable case law
Esplendido Apartments v. Olsson, 144 Ariz. 355 (1985); MidFirst Bank v. Chase, research needed for current case law.
Looking at a Arizona deal?
Send the parcel and the terms — we'll walk through whether owner financing fits, how to record it, and what the cure period looks like if things go sideways.
Talk to WyattEducational content only. Statute citations are public-record research, not legal advice. Arizona contracts and remedies are fact-specific — consult a licensed Arizona real-estate attorney before signing anything.