Opting Out of Standard Deed of Trust Rules
Most deeds of trust in Arizona secure a home loan or similar financial obligation. The rules in Title 33, Chapter 6.1 govern how those deeds work, including requirements for trustee sales, notices, and redemption rights. But not every deed of trust is created for a standard lending purpose.
When a deed of trust serves a principal purpose other than (or in addition to) securing the performance of a contract, the parties involved can agree to opt out of the standard rules entirely.
If a trust deed is executed for a principal purpose other than or in addition to securing the performance of a contract or contracts, the parties thereto may agree that the provisions of this chapter shall not be applicable. If such an agreement is in writing and is contained in such trust deed the provisions of this chapter shall not be applicable to such trust deed.
A.R.S. § 33-819What This Means in Practice
The key requirement is that the opt-out agreement must be written directly into the deed of trust document. A separate side letter or verbal understanding will not satisfy the statute. If the written agreement is included, the parties operate outside Arizona's standard deed of trust framework and instead rely on whatever terms they negotiated in the instrument itself.
This provision typically comes into play in complex commercial transactions, development agreements, or situations where property is held in trust for purposes beyond simple debt security. For most residential homeowners, the standard deed of trust rules will apply. If you encounter a deed of trust with an exemption clause during estate settlement or trust administration, it is worth understanding that the usual foreclosure and sale procedures may not govern that particular instrument.
