A.R.S. § 33-702: What Counts as a Mortgage
Mortgage defined; admissibility of proof that transfer is a mortgage
What legally counts as a mortgage in Arizona?
In Arizona, any transfer of an interest in real property, other than in trust, that is made only as security for performing another act is a mortgage, and this can be proved even if the document does not say so, except against a later buyer or lender who paid value and had no notice. A mortgage or trust deed may assign the borrower's leases, rents, profits, and income from the property to the lender, whether the assignment takes effect before, upon, or after a default. The lender may enforce that assignment, regardless of the adequacy of the security or the borrower's solvency, by a receiver, by taking possession or without taking possession, by collecting directly from those who owe the money, or by injunction.
Full statute text
Official text last checked against azleg.gov:
33-702. Mortgage defined; admissibility of proof that transfer is a mortgage
A. Every transfer of an interest in real property, other than in trust, or a trust deed subject to the provisions of chapter 6.1 of this title, made only as a security for the performance of another act, is a mortgage. The fact that a transfer was made subject to defeasance on a condition may, for the purpose of showing that the transfer is a mortgage, be proved except against a subsequent purchaser or encumbrancer for value and without notice, notwithstanding that the fact does not appear by the terms of the instrument.
B. A mortgage or trust deed may provide for an assignment to the mortgagee or beneficiary of the interest of the mortgagor or trustor in leases, rents, issues, profits or income from the property covered thereby, whether effective before, upon or after a default under such mortgage or trust deed or any contract secured thereby, and such assignment may be enforced without regard to the adequacy of the security or the solvency of the mortgagor or trustor by any one or more of the following methods:
1. The appointment of a receiver.
2. The mortgagee or beneficiary taking possession of the property, or without the mortgagee or beneficiary taking possession of the property.
3. Collecting such monies directly from the parties obligated for payment.
4. Injunction.
Drafted by AI from the official text and checked sentence by sentence against azleg.gov. ClearStatute is run by David Bartlett, who is not an attorney. Legal information, not legal advice — consult a licensed attorney for your situation.