House Engrossed

 

judgments; liens; homestead

 

 

 

 

State of Arizona

House of Representatives

Fifty-fifth Legislature

First Regular Session

2021

 

 

HOUSE BILL 2617

 

 

 

AN ACT

 

amending sections 12-1551, 33-964, 33-1101 and 33-1103, Arizona Revised Statutes; relating to civil judgments.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 12-1551, Arizona Revised Statutes, is amended to read:

START_STATUTE12-1551. Issuance of writ of execution; limitation; renewal; death of judgment debtor; applicability

A. The party in whose favor a judgment is given, at any time within ten years after entry of the judgment and within ten years after any renewal of the judgment either by affidavit or by an action brought on it, may have a writ of execution or other process issued for its enforcement.

B. An execution or other process shall not be issued on a judgment after the expiration of ten years from the date of its entry unless the judgment is renewed by affidavit or process pursuant to section 12-1612 or an action is brought on it within ten years from after the date of the entry of the judgment or of its renewal.

C. The court shall not issue a writ of execution after the death of the judgment debtor unless it is for the recovery of real or personal property or enforcement of a lien.

D. This section applies to:

1. All judgments that were entered on or after August 3, 2013.

2. All judgments that were entered on or before August 2, 2013 and that were renewed on or before August 2, 2018, except that a writ of execution or other process may not be issued for a judgment entered on or before August 2, 2013 that was not renewed on or before August 2, 2018.

E. This section does not apply to:

1. Criminal restitution orders entered pursuant to section 13-805.

2. Written judgments and orders for child support and spousal maintenance and to associated costs and attorney fees.

3. Judgments for supervision fees or expenses associated with the care of a juvenile pursuant to section 8-241 or 8-243 and to associated costs and attorney fees.

4. Civil judgments obtained by this state that are either of the following:

(a) Entered on or after September 13, 2013.

(b) Entered before September 13, 2013 and that were current and collectable under the laws applicable on September 13, 2013. END_STATUTE

Sec. 2. Section 33-964, Arizona Revised Statutes, is amended to read:

START_STATUTE33-964. Lien of judgment; duration; exemption of homestead; acknowledgment of satisfaction by judgment creditor

A. Except as provided in sections 33-729 and 33-730, from and after the time of recording as provided in section 33-961, a judgment shall become a lien for a period of ten years from after the date it is given on all real property of the judgment debtor except real property exempt from execution, including homestead property, in the county in which the judgment is recorded, whether the property is then owned by the judgment debtor or is later acquired. A civil judgment lien obtained by this state and a judgment lien for support, as defined in section 25-500, remain in effect until satisfied or lifted.

B. Except as provided in section 33-1103, a recorded judgment shall not become a lien on any homestead property. Any person entitled to a homestead on real property as provided by law holds the homestead property free and clear of the judgment lien.

B. A civil judgment shall become a lien on the real property of the judgment debtor, including the judgment debtor's homestead PROPERTY, that is located in the county in which the judgment is recorded, WHETHER the property is then owned by the judgment debtor or is later acquired, from and after the time of recording as provided in section 33-961 until SATISFIED or lifted. This subsection applies retroactively to all judgments without regard to when the judgment was recorded.

C. A judgment of the justice court, municipal court, superior court or United States court that has become a lien under this article, immediately on the payment or satisfaction of the judgment, shall be discharged of record by the judgment creditor or the judgment creditor's attorney by recording a satisfaction of judgment with the county recorder of the county in which the judgment is recorded. The judgment creditor or the judgment creditor’s attorney shall enter a notation of satisfaction on the docket of the clerk of the superior court of each county in which the judgment has been entered or docketed, and in a like manner enter a notation of satisfaction on the docket of the clerk of the United States district court.

D. In a title IV-D case, if the title IV-D agency or its agent is listed as the holder of the lien and the judgment has been satisfied but the obligee is unwilling to sign the release of the lien or, after reasonable efforts, cannot be located to sign the release of the lien, the title IV-D agency or its agent may sign the satisfaction of judgment and release of lien without the signature of the obligee.  The title IV-D agency or its agent shall send a copy by first class mail to the last known address of the obligee. END_STATUTE

Sec. 3. Section 33-1101, Arizona Revised Statutes, is amended to read:

START_STATUTE33-1101. Homestead exemptions; persons entitled to hold homesteads

A. Any person the age of eighteen years of age or over, married or single, who resides within the this state may hold as a homestead exempt from attachment, execution and forced sale, not exceeding one hundred fifty thousand dollars $250,000 in value, any one of the following:

1. The person's interest in real property in one compact body upon on which exists a dwelling house in which the person resides.

2. The person's interest in one condominium or cooperative in which the person resides.

3. A mobile home in which the person resides.

4. A mobile home in which the person resides plus the land upon on which that mobile home is located.

B. Only one homestead exemption may be held by a married couple or a single person under this section. The value as specified in this section refers to the equity of a single person or married couple. If a married couple lived together in a dwelling house, a condominium or cooperative, a mobile home or a mobile home plus land on which the mobile home is located and are then divorced, the total exemption allowed for that residence to either or both persons shall not exceed one hundred fifty thousand dollars $250,000 in value.

C. The homestead exemption, not exceeding the value provided for in subsection A of this section, automatically attaches to the person's interest in identifiable cash proceeds from the voluntary or involuntary sale of the property. The homestead exemption in identifiable cash proceeds continues for eighteen months after the date of the sale of the property or until the person establishes a new homestead with the proceeds, whichever period is shorter. Only one homestead exemption at a time may be held by a person under this section. END_STATUTE

Sec. 4. Section 33-1103, Arizona Revised Statutes, is amended to read:

START_STATUTE33-1103. Effective date of homestead exemption; extent of exemption; exceptions

A. Real property that is subject to the homestead exemption provided for in section 33-1101, subsection A is exempt from process and from involuntary sale under a judgment or lien, except in connection with:

1. A consensual lien, including a mortgage or deed of trust, or contract of conveyance.

2. A lien for labor or materials claimed pursuant to section 33-981.

3. A lien for child support arrearages or spousal maintenance arrearages.  An award of court ordered support is not a lien for the purposes of this paragraph unless one of the following applies:

(a) An arrearage has been reduced to judgment.

(b) A lien exists pursuant to section 25-516.

(c) The court orders a specific security interest of the property for support.

4. To the extent that A recorded civil judgment or other nonconsensual lien may be satisfied from the equity of the debtor exceeding that is not otherwise prescribed in this subsection if the debtor's equity in the real property exceeds the homestead exemption under section 33-1101.

B. A sale as described in subsection A of this section and not excepted by subsection A, paragraph 1, 2, 3 or 4 of this section is invalid and does not convey an interest in the homestead property, whether made under a judgment existing before or after the homestead is established.

C. In a contempt proceeding brought to enforce payment of any form of child support or spousal maintenance, the court may consider the portion of property claimed as exempt pursuant to section 33-1101, subsection A, as a resource from which an obligor has the ability to pay.END_STATUTE