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ARIZONA HOUSE OF REPRESENTATIVESFifty-fifth Legislature First Regular Session |
House: WM DP 10-0-0-0 | 3rd Read 52-0-8-0Senate: FIN DPA 8-0-2-0 | 3rd Read 18-12-0-0 Final: 32-27-1-0 |
HB 2617: judgments; liens; homestead
Sponsor: Representative Toma, LD 22
Transmitted to the Governor
Overview
Limits the issuance of the writ of execution after a certain date, removes the exclusion of homestead property from civil judgement liens, increases the homestead exemption from $150,000 to $250,000 and outlines an exclusion from the homestead exemption.
History
Current law addresses the issuance of the writ of execution and the limitations of given judgements in civil proceedings. Currently, a party with a favorable judgement has ten years after the entry of the judgement, or ten years after the renewal of the judgement by affidavit or action, may have a writ of execution to enforce it. (A.R.S. § 12-1551)
Statute outlines that a person eighteen years of age or older, married or single, who resides in the state may hold a homestead exempt from attachment, execution, and forced sale not exceeding $150,000 in value. (A.R.S. § 33-1101) A homestead is not exempt from judgement or lien in an instance of a consensual lien, a lien for labor or materials or a lien for child support or court ordered support. (A.R.S. § 33-1103)
1. Outlines civil judgements obtained by this state entered on or after September 13, 2013 or before September 13, 2013 that were valid on September 13, 2013 are exempt from writs of execution. (Sec. 1)
2. Removes the exemption of real property, including homestead property, from a judgement becoming a lien on all real property of the judgement debtor in the county where the judgement is recorded. (Sec. 2)
3. Eliminates the exemption of homestead property from judgement. (Sec. 2)
4.
Requires, on the sale of homestead
property that is subject to a judgment lien, the judgment creditor to be paid
after the homestead exemption amount is paid to the judgment debtor and after
payment of any liens that have priority over the judgment lien. (Sec. 2)
5. Allows a title insurer to record a partial release of judgment if the anticipated payment to the judgment debtor is less than 80% of the homestead exemption. (Sec. 2)
6. Extinguishes, when statutory conditions are complied with, a judgment creditor's lien if the anticipated payment to the judgment debtor is 80% of the homestead exemption. (Sec. 2)
7. Requires a judgment creditor who receives cash proceeds from refinancing a homestead property to be paid in full from those proceeds before the judgment debtor or another person receives any proceeds, except that monies used to pay direct costs associated with the refinance or to satisfy priority liens do not constitute cash proceeds. (Sec. 2)
8. Requires any person who records a notice of release of a judgment lien to mail a copy of that recorded notice of release to the judgment creditor whose judgment lien is affected by that recorded document. (Sec. 2)
9. Establishes that a judgment lien is not created on a judgment creditor's homestead property if:
a) A court of competent jurisdiction, including the U.S. Bankruptcy Court, has discharged or enjoined enforcement before January 1, 2022; or
b) There is a bankruptcy petition that is pending before January 1, 2022, for which a discharge is ultimately granted. (Sec. 2)
10. Determines the priority of valid judgment liens recorded before January 1, 2022. (Sec. 2)
11. Defines "Title Insurer." (Sec. 2)
12. States that a civil judgement becomes a lien on the real property of the judgement debtor, including homestead property, in the county where the judgement is recorded, and is retroactively applied to all judgements. (Sec. 2)
13. Increases homestead exemption from $150,000 to $250,000. (Sec. 3)
14. Specifies that the homestead exemption does not attach to the person's interest in identifiable cash proceeds from refinancing the homestead property. (Sec. 3)
15. Allows parties to rely on the valuation of the property in the final closing document disclosure for the purposes of determining the amount of equity in a sold homestead property or for determining whether the property owner is receiving cash back from refinancing. (Sec. 3)
16. Includes a recorded civil judgement or other nonconsensual lien not otherwise prescribed if the debtor’s equity exceeds the homestead exemption to prevent a homestead from being exempt from process and sale under a judgement or lien. (Sec. 4)
17. Contains a delayed effective date of January 1, 2022. (Sec. 5)
18. Makes technical and conforming changes. (Sec. 1, 2, 3 and 4)
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22. HB 2617
23. Initials VP/CS Page 0 Transmitted
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