I went to a Real Estate continuing education class recently. This particular class was at the Arizona School of Real Estate and Business, and one of the presenters was Bill Gray, who used to own the school.
I can always be sure that if he is around, I’m very likely to learn something interesting. This particular class was no exception, since another one of the presenters was an attorney who I think created Done Deal Solutions’ business model of doing short sale flips. (More on this in a future post)
The class was a sell out, at $50 a seat, and was worth every penny. There were several other presenters, and all were very good. The first presenter was Diane Drain, a foreclosure attorney. Among other things, she talked about a little known portion of the Arizona Revised Statutes which permits anyone to record a notice at the county recorder’s office which has the effect of notifying whoever is specified in the document as to a number of bad things which may later be filed against a property, such as liens, notice of foreclosure, trustee’s sale, conveyance of the property, and the like.
ARS 33-809. Request for copies of notice of sale; mailing by trustee; disclosure of information regarding trustee sale
A. A person desiring a copy of a notice of sale under a trust deed, at any time subsequent to the recording of the trust deed and prior to the recording of a notice of sale pursuant thereto, shall record in the office of the county recorder in any county in which part of the trust property is situated a duly acknowledged request for a copy of any such notice of sale. The request shall set forth the name and address of the person or persons requesting a copy of such notice and shall identify the trust deed by setting forth the county, docket or book and page of the recording data thereof and by stating the names of the original parties to such deed, the date the deed was recorded and the legal description of the entire trust property…
So why is this useful? There are several reasons. First, if there is a property you might be interested in buying, and you think the owner might be having problems, you could record this request and get notified when they are really in trouble.
Second, and more important, if you are renting or leasing a property, it might be nice to know that your landlord is about to lose the property. A foreclosure wipes out your lease – and if you weren’t privy to what troubles they were having, your first notice might be the sheriff showing up to evict you.
Finally, as a Real Estate licensee (so only about half of the population of Arizona need worry about this one!) it might be a good idea to file this notice on any listing you have that is for longer than 6 months, especially if it is an absentee owner. The property might go into foreclosure during the listing period. Probably would be something you want to know, if it is your listing.
Filing a Request for Notice is another interesting tool to keep in your arsenal, something which could protect you or your clients (if you are a licensee), and could make a huge difference to your business! the meager recording fee makes it cheap insurance.