Because Arizona is a title theory state, mortgage lenders use a Deed of Trust instead of a mortgage to secure repayment of a home buyer's loan.
- Under the Deed of Trust, title to the property is transferred to a trustee (often a title company) who holds it until the borrower has repaid the entire amount of the loan, accrued interest, and any charges associated with the loan.
- If the borrower breaches the Deed of Trust, the lender gives written notice to the borrower specifying what must be done to cure the breach prior to accelerating repayment of the debt.
- If the breach is not remedied, the lender can invoke its power of sale.
The Arizona Deed of Trust template contains standard uniform covenants and State-specific provisions. Buy and download the form and you can use it as often as your business requires.
Last Updated: 14-April-2016