How Arizona Defines a Mortgage
Under A.R.S. § 33-702, any transfer of a real property interest made solely as security is a mortgage. This definition focuses on substance, not labels. Even if a document looks like a sale, a court can treat it as a mortgage. The real purpose must have been to secure a debt.
Arizona law requires mortgages to be in writing. They must follow the same formalities as a property deed. They must also be recorded in the county where the property is located (A.R.S. § 33-701).
Mortgages and Estate Planning
When a homeowner dies, the mortgage does not disappear. The debt stays attached to the property. It must be addressed during probate or trust handling. The Garn-St. Germain Act generally prevents lenders from calling a loan due after certain transfers. This protection covers transfers to a surviving spouse, heir, or living trust. Understanding how mortgages interact with estate planning tools is essential for families with outstanding loans.