The Risk of Not Recording
Arizona law draws a hard line between the parties to a real estate deal and everyone else. Between the original buyer and seller, an unrecorded deed is valid.
But against creditors and later buyers, an unrecorded document is treated as if it does not exist. As a result, recording is essential.
All bargains, sales and other conveyances whatever of lands, tenements and hereditaments, whether made for passing an estate of freehold or inheritance or an estate for a term of years, and deeds of settlement upon marriage, whether of land, money or other personal property, and deeds of trust and mortgages of whatever kind, shall be void as to creditors and subsequent purchasers for valuable consideration without notice, unless they are acknowledged and recorded in the office of the county recorder as required by law.
A.R.S. § 33-412(A)If you receive a deed but do not record it, someone else could buy the same property. A buyer who pays fair value and has no notice of your claim will generally win.
When an Unrecorded Document Still Holds Up
The statute does protect unrecorded documents in two cases. First, between the original parties and their heirs, the document stays valid whether or not it was recorded.
Second, if a later buyer knew about the unrecorded document, it is still enforceable against them. The same applies if that buyer did not pay fair value.
Unrecorded instruments, as between the parties and their heirs, and as to all subsequent purchasers with notice thereof, or without valuable consideration, shall be valid and binding.
A.R.S. § 33-412(B)The takeaway is clear. Record every deed, trust transfer, or other real estate document with the county recorder right away. The public record is your protection.