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A.R.S. § 33-709

Mortgage Release After Lender Dies

Verified April 4, 202657th Legislature, 1st Regular Session

When a mortgage or deed of trust was paid off during the lender's lifetime but never formally released, this statute requires the lender's executor or administrator to issue the release. If they fail to do so within thirty days of proof, they face a personal penalty and liability for damages.

Title 33, MORTGAGES

azleg.gov

Why a Paid-Off Mortgage Still Needs a Release

Making every mortgage payment on time does not automatically clear the lien from the property record. Someone must sign a release or satisfaction document and file it with the county recorder. When the lender who held the note is still alive, that step is simple. When the lender has passed away, the process gets complicated.

This statute addresses that gap. If the borrower managed to pay off the loan during the lender's lifetime, the executor or administrator of the lender's estate must issue the release. The mortgage debt does not disappear just because the lender dies.

The executor or administrator of a mortgagee or of the holder or owner of an indebtedness secured by a mortgage or deed of trust shall, if the indebtedness was paid to the decedent in his lifetime, acknowledge satisfaction thereof by delivering to such person a sufficient release, satisfaction of mortgage or deed of release of the mortgage or deed of trust.

A.R.S. § 33-709

Consequences of Failing to Act

The statute gives the personal representative thirty days after receiving proof of payment. If they fail to deliver a proper release within that window, the consequences are personal. The executor or administrator forfeits one hundred dollars to the property owner. They also become personally liable for any damages the delay causes.

This matters for property owners who need a clean title to sell or refinance. A lingering lien from a deceased lender can stall transactions and create title insurance problems. The statute also protects the personal representative from estate liability. Releasing a mortgage under this section does not make the executor personally liable to the estate for the released debt.

When a borrower dies before the mortgage is fully paid off, different rules apply. The surviving spouse or the person who inherits the property may need to work with the mortgage servicer to continue payments or arrange a loan modification. This statute only covers situations where the lender is the one who passed away after the debt was already satisfied.

Families often discover these issues when trying to sell inherited real estate. A title search may reveal a mortgage that was paid off years ago but never formally released. Without a living lender to sign the paperwork, this statute provides the legal path to clear the record.

If you need to pay off the loan or confirm that a prior mortgage was satisfied, keeping detailed records of every mortgage payment helps the personal representative act quickly when the time comes.

The executor or administrator of a mortgagee or of the holder or owner of an indebtedness secured by a mortgage or deed of trust shall, if the indebtedness was paid to the decedent in his lifetime, acknowledge satisfaction thereof by delivering to such person a sufficient release, satisfaction of mortgage or deed of release of the mortgage or deed of trust or acknowledge satisfaction as provided in subsection C of section 33-707. If the executor or administrator, upon proof to him of the payment of the indebtedness to his decedent, does not, within thirty days, acknowledge satisfaction by delivering to the person owning the property a sufficient release, satisfaction of mortgage or deed of release, or acknowledge satisfaction as provided in subsection C of section 33-707, he shall personally forfeit to the party aggrieved one hundred dollars and be personally liable for the damages thereby sustained. The executor or administrator shall not be liable to the estate of which he is executor or administrator for any indebtedness by mortgage or deed of trust released by him in accordance with this section.

This page provides general legal information about Arizona statutes and is not legal advice. For guidance on how this law applies to your situation, speak with a qualified attorney.

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