Arizona

Quick facts

Sale type

Tax lien

Redemption period

3 years

Sale frequency

Annual (February)

Max interest rate

16%

Foreclosure type

Judicial

Deed type

Treasurer's deed

Statutory framework

Sale mechanics

Arizona conducts tax lien sales via a reverse auction where bidders compete to accept the lowest interest rate. Auctions are held annually, often online through platforms like RealAuction. Bidders must register with the county treasurer, provide identification, and submit a deposit. The minimum bid is the total of delinquent taxes, interest, penalties, and fees, with full payment typically due shortly after the sale.

Post-sale obligations

Purchasers do not gain possession or entry rights during the redemption period. If the lien is not redeemed within three years, the purchaser may initiate a judicial foreclosure action in Superior Court to obtain a treasurer's deed. The lien expires 10 years after the original sale if no foreclosure action is commenced.

Quiet title cost estimator

Estimate attorney and court costs for clearing title after a Arizona tax deed purchase.

Notable counties

Key Arizona counties for tax deed investors.

Recent statutory changes

1. Legislative changes introduced an excess proceeds sale process for properties where value significantly exceeds tax debt, and a 10-year statutory expiration limit for tax liens.

How to bid at a Arizona tax deed auction

Step-by-step process for participating in Arizona tax deed sales.

1. 1

   Research the catalog

   Review the delinquent tax list published by the county treasurer.

2. 2

   Perform due diligence

   Investigate property status, environmental risks, and title issues.

3. 3

   Register for auction

   Complete registration with the county and submit the required deposit.

4. 4

   Submit bids

   Participate in the auction by bidding down the interest rate.

5. 5

   Pay the balance

   Remit the full payment for winning bids by the county's deadline.

6. 6

   Initiate foreclosure

   File a judicial foreclosure action in Superior Court after three years if the lien remains unredeemed.

Applicable statutes

Primary statute sections governing tax deed sales in Arizona.

• A.R.S. § 42-18112

  Governs the timing of the annual tax lien sale in February.

• A.R.S. § 42-18152

  Defines the three-year redemption period.

• A.R.S. § 42-18153

  Sets the interest rate structure for redemption.

• A.R.S. § 42-18201

  Authorizes the judicial foreclosure of the right to redeem.

Notable case law

Landmark court decisions affecting Arizona tax deed investors.

Frequently asked questions

Common questions from Arizona tax deed investors.

How does Arizona's redemption period work?

The owner has three years from the sale date to pay the full amount of taxes, interest, and fees to the treasurer.

Do I need a judicial foreclosure after purchase?

Yes, to obtain the property, you must file a judicial foreclosure action in Superior Court after the three-year redemption period.

What title risks should a buyer know?

The county provides no warranty on title or environmental status; investors must conduct their own due diligence.

What happens if the owner challenges the sale?

The court will review the validity of the tax lien and the foreclosure process; procedural errors can potentially invalidate the sale.

Can I inspect properties before bidding?

Yes, but you have no legal right to enter the property; you must rely on public records and exterior observation.

What is the average cost of foreclosure?

Costs typically range from $1,000 to $3,500+ depending on the complexity of service and whether the action is contested.