For example, if you fail to pay your property taxes, someone else can swoop in, pay the tax liability, and then ultimately claim title to your property. Under Arizona law, a tax levied on real property is a lien on the assessed property.
What happens if you don’t pay property taxes in Arizona?
All states have laws that allow the local government to sell a home through a tax sale process to collect delinquent taxes. Accordingly, if you don’t pay the real property taxes on your Arizona home, the county treasurer can hold a tax lien sale and you could eventually lose ownership of your property.
Is Arizona a tax lien state?
Arizona is a tax lien state. The interest rate starts at 16% and the redemption period is 3 years. … Tax sales are the responsibility of the County treasurer’s office and are held in February of each year. To bid at any of the Arizona tax lien sales you must first fill out a bidder information form and a W-9 form.
Can you buy a house by paying the taxes?
Paying someone’s taxes does not give you claim or ownership interest in a property, unless it’s through a tax deed sale. This means that paying taxes on a property you’re interested in buying won’t do you any good.
How do tax liens work in Arizona?
Arizona law allows an investor to receive up to 16% interest per annum on the tax lien certificate. The bidder with the lowest bid on the interest rate wins the auction on each lien. If you are the successful bidder, you pay the outstanding taxes and receive a tax lien certificate.
How long can property taxes go unpaid in Arizona?
When a property owner falls behind on paying taxes, county treasurers place liens on properties with delinquent property taxes. If the taxes remain unpaid after two years, the treasurers auction off those liens to investors, who then pay the delinquent tax, recouping money the counties need.
What is the adverse possession law in Arizona?
Under Arizona law, a person must occupy property that is otherwise neglected for at least two years before he or she makes a right of possession adverse possession claim. The person must occupy the property publicly, which includes paying property taxes and acting as if he or she has the right to possess the property.
How do I find out if there is a lien on my property in Arizona?
Liens are publicly recorded in the county where the property is located. You can record your lien at the county office of the recorder.
How does a sheriff sale work in Arizona?
In a sheriff’s sale, the initial owner of a property is unable to make their mortgage payments and legal possession of the property is regained by the lender. The lender will then attempt to sell it to recover some, if not all, of the outstanding mortgage balance.
When can you foreclose on a tax lien in Arizona?
Foreclosure. After three years from the date of the tax lien sale but no later than 10 years the CP holder may begin a judicial foreclosure action to obtain ownership of the property.
How can I own land and not pay taxes?
You can own your land tax-free if you qualify as a disabled person under federal or state regulations. You must claim homestead exemption on the home you live in and it must be your permanent residence.
How long do you have to pay property taxes in Arizona?
Your property tax may be paid in full or in two installments: The due date for the first half tax is October 1. The first half installment becomes delinquent after 5:00 p.m. on November 1 for Tax Bills over $100.