Property Tax Lien Certificates Arizona
In Arizona, "a tax that is levied on real or personal property is a lien on the assessed property." A.R.S. 42-17153 (2006). to secure the payment of delinquent taxes on real property, A.R.S. 42-18101 (2006) allows county treasurers to sell tax liens, which are interest bearing investments. Sun Valley Fin. Servs., L.L.C. v. Guzman, 212 Ariz. 495, 496, P 3, 134 P.3d 400, 401 (App. 2006).
The purchaser of a tax lien receives a certificate of purchase that ultimately may entitle the holder to a deed on the real property if certain statutory conditions are met. A.R.S. 42-18118 (2006); see Sun Valley Fin. Servs., 212 Ariz. at 496, P 3, 134 P.3d at 401.
The owner, owner's agent, assignee, or attorney, or any person with a legal or equitable claim to the property, including the holder of a certificate of purchase, may redeem the tax lien by paying the delinquent taxes, accrued interest, and other statutory fees to the county treasurer. A.R.S. 42-18151 & 42-18153 (2006 & Supp. 2008).
If the tax lien is not redeemed within three years of purchase, the purchaser of the lien may bring an action in superior court to foreclose the property owner's right to redeem. A.R.S. 42-18201 (Supp. 2008).
If the property is redeemed after the initiation of a foreclosure action and "the person who redeems has been served personally or by publication in the action," the redeemer must pay the lien holder's costs, including attorneys' fees. A.R.S. 42-18206.