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Arizona Trustee Deed

Arizona Trustee Deed Information

The function of a trustee's deed is to transfer real property out of a trust. In Arizona, a separate form, called a Trustee's Deed Upon Sale, is used in cases of foreclosure to transfer real property under a deed of trust to a grantee who has purchased the property at public auction. Both versions are named for the person using the deed.

In a trustee's deed, the trustee serves as the grantor to convey real property out of the trust and to the grantee. The power of the trustee to sell trust property is granted by the terms of a trust agreement previously executed between the settlor and the trustee. The settlor is the party who originally conveyed the property into the trust (A.R.S 14-10103(16)).

In addition to meeting the content and formatting requirements of traditional conveyances such as warranty or quitclaim deeds, trustee's deeds also include identification of the trustee, information about the trust, and the disclosure of the trust's beneficiaries.

In many cases, a trustee's deed is used to transfer property out of a trust and to a trust beneficiary with only nominal actual consideration for the transfer. A trust beneficiary is someone who has either a present or future interest in the trust (A.R.S 14-10103(2)(a)). Because the transfer is generally made "for good and valuable consideration," or a similar variant, it functions similarly to an inter vivos deed (a deed granting property as a gift from one living person to another). In this instance, the transfer is exempt from the affidavit of legal value requirement pursuant to A.R.S. 11-1134(B)(8).

A trustee also uses a trustee's deed to transfer real property held in a trust to the trustee of a separate trust, as is the case when a sole surviving trustee wishes to transfer trust property into a survivor's trust created under the original trust.

As with other types of conveyances, trustee's deeds need to be signed in the presence of a notary public, notarized, and recorded in the office of the recorder in the Arizona county where the property is located.
Transferring real estate out of a trust is often a simple process, but trust laws and regulations can be tricky. Don't hesitate to contact an attorney for help with questions or for a complex situation.

Deeds.com Arizona Trustee Deed Forms Have Been Updated as Recently as Wednesday November 30, 2022

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