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Arizona · A.R.S. §33-438Arizona sales subject to the seller's liens: the buyer's right to void without a clear-title assurance

Arizona protects buyers in installment, subject-to and wraparound deals where the seller's own debts stay on the property. A sale of a lot or parcel that is subject to a lien or encumbrance – or where the seller's interest is held under an option, a contract of purchase or a trust – is voidable by the buyer, unless the lien, option, contract or trust instrument, or a valid supplementary agreement, assures that the buyer will receive title free of it once the buyer completes all payments and performance (A.R.S. §33-438(B)). Taxes and assessments, patent reservations, easements, rights-of-way, mineral reservations and covenants, conditions and restrictions don't count as liens for this rule (§33-438(A)). The buyer can't void the sale after actually receiving clear title, and must sue within two years after discovery or after completing all payments and performance, whichever comes first (§33-438(C)); the right comes on top of other remedies (§33-438(D)).

The rules

  1. 1. Voidable (§33-438(B))

    Sale subject to the seller's lien, or seller holding under an option, contract or trust.

  2. 2. Unless (§33-438(B))

    An instrument or supplementary agreement assures clear title on the buyer's full performance.

  3. 3. Not liens (§33-438(A))

    Taxes, easements, rights-of-way, mineral reservations, CC&Rs.

  4. 4. Deadline (§33-438(C))

    Two years after discovery or after full performance, whichever is first.

What the TC can do

  • On a subject-to, wraparound or seller-financed sale, ask for the agreement that assures the buyer clear title on payoff.
  • Check whether the seller holds under an option or an unrecorded purchase contract.
  • Put the existing liens and the clear-title assurance in the deal file.

Questions about Arizona subject-to sales

Can an Arizona buyer undo a subject-to purchase?

Yes, if the property was sold subject to the seller's lien without an agreement assuring the buyer clear title on full payment – within two years of discovery or of completing payment, whichever is first (A.R.S. §33-438(B)–(C)).

Do easements or CC&Rs make an Arizona sale voidable under §33-438?

No. Taxes and assessments, patent reservations, easements, rights-of-way, mineral reservations and covenants, conditions and restrictions aren't liens for this section (A.R.S. §33-438(A)).

Related guides

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Source: A.R.S. §33-438 (azleg.gov, read October 28, 2026).

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.