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Eminent domain laws in Arizona for 2024 continues to be a critical issue for property owners, understanding the legal expectations pertinent to these proceedings is increasingly vital.
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Arizona’s Eminent Domain Laws: What Every Landowner, Investor, and Developer Should Know
Arizona’s Eminent Domain Laws: What Every Landowner, Investor, and Developer Should Know 1920 1280 Gottlieb Law

Gottlieb Law, PLC provides this article for informational purposes only. Nothing herein creates an attorney–client relationship. You should not act on any of the information contained without consulting qualified legal counsel. Laws change over time, and you should seek legal advice about your specific situation.

Understanding Eminent Domain in Arizona

If you own property in Arizona or are planning to develop land, it’s important to understand how eminent domain works. In a fast-growing state, governments and certain private entities regularly acquire property for infrastructure, utilities, and other public purposes.

At its core, eminent domain is the power to take private property for a “public use,” so long as the owner is paid “just compensation.” This requirement comes from both the U.S. Constitution (Fifth Amendment) and the Arizona Constitution (Article 2, § 17).

Who Can Exercise Eminent Domain?

While eminent domain is most often associated with city, county, or state governments, Arizona law also authorizes certain private entities to use it when the legislature has granted the power. These include utility companies, railroads, and pipeline operators. The authority comes primarily from Arizona Revised Statutes §§ 12-1111 through 12-1129.

What Protections Do Landowners Have?

Property owners are not powerless. Arizona law sets out strict requirements to ensure fairness:

  • Public Use Requirement – The taking must be for a valid public purpose, such as roads, utilities, schools, or other community infrastructure.
  • Just Compensation – Owners must be paid fair market value for the property taken, which may include damages for partial takings.
  • Procedural Safeguards – Courts oversee the process to ensure compliance with statutory deadlines and constitutional protections.
  • Proposition 207 Protections (A.R.S. § 12-1134) – Arizona provides additional protection against “regulatory takings,” where land use restrictions reduce property value without a direct taking.

Why This Matters

Eminent domain is not rare in Arizona — it often arises in highway expansions, light rail projects, and utility easements. Understanding the process, the defenses available, and how compensation is calculated can make the difference between a fair resolution and a costly loss.

The Legal Landscape: What Authorizes Eminent Domain in Arizona?

Eminent domain in Arizona is governed by both the Arizona Constitution and a detailed statutory framework (A.R.S. §§ 12-1111 through 12-1129). These laws specify who may take property, under what circumstances, and what procedures must be followed.

Under the Arizona Constitution (Article II, § 17), property may be taken only for a public use and only if the owner is paid just compensation. Importantly, the Constitution makes clear that it is the courts—not lawmakers or agencies—that decide whether a use truly qualifies as “public.” This means property owners have the right to challenge not only the amount of compensation, but also the very legitimacy of the taking itself.

Arizona law also provides additional protection through the Private Property Rights Protection Act (Proposition 207, codified at A.R.S. § 12-1134). This statute requires compensation if new land-use regulations reduce a property’s fair market value, unless narrow exceptions apply. It also prevents condemnations that primarily benefit private parties.

The Process for Eminent Domain in Arizona

Arizona statutes require condemning authorities to follow a strict, step-by-step process. Any misstep can delay or even invalidate the taking:

  1. Resolution of Necessity – The government agency (or, in limited cases, a utility or special district) must adopt a formal resolution declaring the need for the property.
  2. Notice and Offer – The owner receives formal notice, along with a written offer based on an appraisal of fair market value.
  3. Negotiation – The parties may attempt to settle voluntarily.
  4. Court Filing – If no agreement is reached, the condemning authority files a complaint in superior court and deposits its estimate of just compensation.
  5. Early Possession – Once the deposit is made, the authority may take possession of the property before final judgment.
  6. Trial and Valuation – If unresolved, a jury (unless waived) determines just compensation, including damages for partial takings.
  7. Two-Year Bar on Refiling – If the case is dismissed before payment, the condemning authority cannot bring a new action for two years.

These safeguards ensure that property owners have multiple opportunities to contest both procedure and valuation.

What Counts as “Public Use” in Arizona?

Arizona’s definition of public use rests on three pillars:

  1. Arizona Constitution (Art. II, § 17): Prohibits takings for private use and requires judicial review of whether a claimed public purpose is valid.
  2. Proposition 207 (A.R.S. § 12-1134): Bars condemnations that primarily benefit private entities and provides compensation for certain regulatory takings.
  3. Arizona Eminent Domain Statutes (A.R.S. §§ 12-1111 et seq.): Establish procedures and reinforce that property may be taken only for authorized public uses.

An important case on this issue is Bailey v. Myers, 206 Ariz. 224, 76 P.3d 898 (App. 2003). There, the Arizona Court of Appeals struck down a proposed condemnation for a private retail redevelopment, holding that public benefits and characteristics must substantially predominate over private interests for a taking to qualify as public use under the Arizona Constitution.

Constitutional Foundation: Article II § 17

    • “No Private Use” Rule
      • Arizona’s Constitution provides some of the strongest property protections in the country. Article II, § 17 flatly prohibits taking private property for private use, except in narrow cases such as private ways of necessity or mining ditches. It also requires just compensation in money before a taking is effective. For corporate condemnors (other than municipal corporations), compensation must be paid in full, without offsets for “benefits” from the project.
  • Judicial Review Requirement
  • The final sentence of Article II, § 17 makes Arizona unique:  “Whenever an attempt is made to take private property for a use alleged to be public, the question whether the contemplated use be really public shall be a judicial question, and determined as such without regard to any legislative assertion that the use is public.”
  • This means courts, not legislatures or agencies, decide whether a use is truly public. Judicial review is independent and cannot be bypassed by legislative declarations. This principle was central in Bailey v. Myers, where the Arizona Court of Appeals invalidated a retail redevelopment taking because public benefits did not “substantially predominate” over private interests.
  • Historical Context
  • Arizona adopted this provision at statehood in 1912, reflecting deep mistrust of unchecked eminent domain power. Early cases such as Inspiration Consol. Copper Co. v. New Keystone Copper Co., 16 Ariz. 257, 144 P. 277 (1914), confirmed that Article II, § 17 must be read strictly to protect landowners, limiting private takings to the narrow exceptions expressly listed in the Constitution.

Statutory Safeguards

These constitutional limits are reinforced in Arizona’s eminent domain statutes (A.R.S. §§ 12-1111 to 12-1129). The statutes:

  • Define the permissible categories of public use;
  • Require a resolution of necessity before filing;
  • Allow early possession upon deposit of estimated compensation; and
  • Impose a two-year bar on refiling if a case is dismissed before compensation is paid.

Together, the Constitution and statutes create one of the most property-owner-protective eminent domain frameworks in the country.

Proposition 207: The Private Property Rights Protection Act (2006)

In 2006, Arizona voters approved Proposition 207 in response to Kelo v. City of New London (2005). Codified at A.R.S. § 12-1134, it provides that:

  • Takings for economic development are not public use. The statute expressly excludes general economic benefits such as higher tax revenue or jobs from qualifying as “public use.”
  • Regulatory takings are compensable. Landowners are entitled to just compensation if a new land use law reduces their property’s fair market value, unless the government issues a waiver or the regulation falls within limited exceptions (e.g., public health, safety, nuisance abatement).

This reform made Arizona’s eminent domain protections among the strongest in the nation.

Federal Precedents and Arizona’s Response

In Kelo v. City of New London, 545 U.S. 469 (2005), the U.S. Supreme Court held that a city may use eminent domain for a comprehensive economic-development plan, treating “public use” as a broad public-purpose inquiry with strong deference to legislative judgments. Arizona voters reacted swiftly: Proposition 207 (2006)—codified at A.R.S. §§ 12-1131–1138—explicitly excludes ‘public benefits of economic development’ from qualifying (see A.R.S. § 12-1136(5)).

For regulatory takings, Arizona courts primarily apply Ariz. Const. art. II, § 17 and A.R.S. § 12-1134, while federal precedents remain informative.

Practical Takeaways for Property Owners and Developers

  • For Property Owners: If a proposed taking primarily benefits a private developer, you may challenge it under Article II, § 17 and A.R.S. § 12-1134(A)(4). Early legal review of the condemnor’s “resolution of necessity” and appraisals can expose weaknesses in the public-use rationale.
  • For Developers and Municipalities: Ensure any project tied to condemnation has a clear public-use component (road, park, safety improvement). Where possible, rely on voluntary acquisitions (contracts, options) to avoid litigation risk.
  • For Land-Use Planning: Developers should evaluate potential Prop 207 regulatory-takings risks before launch. Municipalities can mitigate liability by offering waivers or variances rather than imposing regulations that reduce property values.

Valuation: What Counts as “Just Compensation”?

In Arizona, just compensation means the fair market value of your property on the date of the taking:

  • Fair Market Value: What a willing buyer would pay a willing seller in an open market.
  • Highest and Best Use: Compensation must reflect the most profitable legal use of the property, even if you’re not currently using it that way.
  • Project Influence Rule: The value cannot be inflated (or reduced) by the very project causing the taking.
  • Partial Takings: If only part of your land is taken, you may also recover severance damages—the loss in value to the remainder of your property.

Government appraisals often come in low. Property owners have the right to present their own expert valuations, and juries—not agencies—decide the final number if the case goes to trial.

Defenses Against Eminent Domain in Arizona

Landowners are not powerless. Arizona law gives you multiple avenues to fight back:

  • Challenge Public Use: Under Article II, § 17 and A.R.S. § 12-1134, courts—not agencies—decide whether a taking is truly for public use.
  • Question Necessity: You can argue the project could be built elsewhere or that the scope of land being taken is excessive.
  • Contest Valuation: You may reject the government’s deposit and demand a jury trial on just compensation.
  • Enforce Procedure: If the condemnor skips a statutory step—like notice, deposit, or a resolution of necessity—you may move to dismiss the action.

Strong procedural safeguards mean missteps by condemning authorities can delay or derail the taking entirely.

Examples of Eminent Domain in Arizona

Eminent domain shows up in many contexts:

  • Transportation: ADOT’s I-17 and Loop 202 expansions have required taking residential and commercial parcels.
  • Utilities: Water, electric, and gas corridors often affect rural and suburban landowners.
  • Flood Control: Maricopa County has condemned land for retention basins, levees, and emergency access.

These takings affect not only land, but also business operations, farming, and access rights, which can significantly increase compensation claims.

Why This Matters

By understanding valuation rules and defenses, landowners can avoid leaving money on the table and ensure condemnors meet every legal obligation.

What Developers and Investors Should Know

Eminent domain can sometimes play a role in making large-scale development possible—for example, when a city needs to build new roads, utilities, or drainage improvements tied to a project. But the law requires that the primary benefit remain with the public, not private investors. Developers should:

  • Structure carefully: Ensure the government—not the private project—is the direct beneficiary of any condemnation.
  • Avoid private-benefit takings: Lobbying for condemnations that primarily benefit a private project risks invalidation under the Arizona Constitution and the Private Property Rights Protection Act.
  • Plan for costs and delays: Appraisal disputes, court deposits, and potential challenges can affect project timelines.
  • Evaluate land-use risk: New overlays, rezonings, or infrastructure funding measures may trigger regulatory-takings claims under Proposition 207.

Early legal guidance can help developers reduce these risks and keep projects compliant.

Regulatory Takings: The Private Property Rights Protection Act

Eminent domain is not the only way property rights are impacted. Arizona’s Private Property Rights Protection Act (Proposition 207, 2006; A.R.S. § 12-1134) also protects owners from certain land-use regulations:

  • Compensation Right: If a newly enacted regulation reduces the property’s fair market value, the owner may demand compensation.
  • Waiver Alternative: Instead of paying, the government can grant a waiver, allowing the property to be used under prior rules.
  • 90-Day Response: After a property owner submits a written demand for compensation, the government has 90 days to either pay, repeal/amend the law, or issue a waiver. If the regulation still applies after 90 days, the owner may file suit

Limits: Some regulations are exempt, such as those addressing public health, safety, or nuisances, and owners must file within 90 days of the law’s enactment or application.

How Gottlieb Law Supports Clients

Whether defending against condemnation or structuring a complex development, Gottlieb Law’s attorneys can provide targeted counsel across Arizona real estate law.

  • For Property Owners: Guidance from early strategy through trial and appeal, ensuring just compensation and strict enforcement of procedural protections.
  • For Developers and Investors: Advice on public-private partnerships, land-use compliance, condemnation risks, and Proposition 207 assessments to keep projects on track.

The firm also handles zoning and leasing legal issues and offers comprehensive support for Arizona real estate clients.

Protect Your Arizona Property: Why You Need Skilled Eminent Domain Attorneys

Eminent domain and regulatory takings aren’t abstract legal issues—they affect homes, investments, and development projects across Arizona. The state’s Constitution and statutes give landowners unusually strong protections, but those protections only matter if you know how to assert them. From contesting whether a taking is truly for public use to challenging undervalued appraisals, every detail counts.

At Gottlieb Law, our attorneys focus on Arizona real estate and property law. We guide clients through Arizona real estate issues, which can include condemnation threats, valuation disputes, and regulatory takings claims, combining deep knowledge of Arizona’s real estate landscape with hands-on courtroom experience. Whether you’re facing a government demand or planning a project that could trigger land-use disputes, we help you protect your rights and move forward confidently.

Call Gottlieb Law today at 602-899-8188 or use our Contact Us page here to schedule your initial consultation.

This article is provided by Gottlieb Law, PLC for informational purposes only and does not create an attorney–client relationship. You should not rely on the information contained herein without first consulting qualified legal counsel regarding your specific situation. Laws change over time, and the application of law varies based on individual facts. For advice tailored to your circumstances, please seek guidance from a licensed attorney.

Arizona Rental Tax Ban 2025 - What Landlords and Tenants Need to Know - Gottlieb Law - Arizona Real Estate Lawyers
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Arizona Rental Tax Ban: What Landlords and Tenants Need to Know for 2025
Arizona Rental Tax Ban: What Landlords and Tenants Need to Know for 2025 1045 697 Gottlieb Law

Gottlieb Law, PLC provides this article for informational purposes only. Nothing herein creates an attorney–client relationship. Reading this article is not a substitute for seeking advice tailored to your situation. Laws change over time, and you should consult qualified legal counsel regarding any specific questions.


Understanding Arizona’s Rental Tax Ban and What It Means for 2025

Starting January 1, 2025, Arizona will eliminate the residential rental transaction privilege tax (TPT). For years, many cities and towns required landlords to collect this local tax—often 2–4%—on rent payments.

The new statewide ban applies only to residential rentals of 30 days or more (not commercial leases). It overrides local city and town authority, meaning landlords across Arizona can no longer collect or remit residential rental tax, even if their municipality previously required it.

For tenants, this means monthly rent bills should drop by the amount of the former rental tax. For landlords, it simplifies compliance and reduces reporting obligations, but it also requires careful adjustments. Lease agreements that currently say “plus applicable rental tax” must be updated, and landlords should stop charging the tax immediately as of January 1. Landlords will also need to file their final December 2024 TPT return and close out their rental TPT license if it applied only to residential properties.

Legislative Background: The Foundation of the Rental Tax Ban

Amendment to A.R.S. § 42-6004(H)

Recently, the Arizona Legislature amended A.R.S. § 42-6004 to add subsection (H). The statute provides that “from and after December 31, 2024, a city, town, or other taxing jurisdiction may not levy a transaction privilege, sales, gross receipts, use, franchise or other similar tax or fee on the business of renting or leasing real property for residential purposes.”

In practical terms, this means that starting with January 2025 rent, municipalities can no longer collect residential rental TPT. The prohibition applies statewide.

What the Amendment Means for Cities and Towns

This statutory change eliminates more than $230 million in annual municipal revenue once generated by taxing residential rentals. Cities and towns will need to adjust their budgets accordingly. For tenants, the benefit is direct — rental bills should drop by the amount of the repealed tax.

For landlords, the law simplifies compliance but requires attention to lease language, billing systems, and tax filings during the transition.

Key Changes for Landlords to Implement

Automatic Cancellation of TPT Licenses

Effective December 31, 2024, the Arizona Department of Revenue (ADOR) automatically canceled TPT licenses that were limited to business code 045 (Residential Rental, Leasing & Licensing for Use).

  • Landlords who only rented residential property no longer need a license.

  • Landlords who also lease commercial property must maintain their license for those activities.

Ceasing Collection of TPT Charges

From January 2025 forward, landlords must stop charging residential rental TPT. Continuing to bill tenants for the repealed tax violates state law and may lead to penalties or tenant disputes. Gottlieb Law recommends that landlords audit their billing systems immediately to ensure no residual tax charges appear on rent statements.

Updating Lease Agreements and Billing Systems

Residential leases signed before 2025 may include language such as “plus applicable rental tax.” Landlords should:

  • Amend leases to remove TPT references.

  • Update property management and accounting software to reflect the elimination.

  • Notify tenants so expectations are clear.

These updates are essential to maintain compliance and avoid over-collection.

Exemptions to Keep in Mind

The ban applies only to residential rentals of 30 days or more. The following remain taxable under Arizona’s TPT system:

  • Commercial leases
  • Short-term rentals under 30 days
  • Health care and long-term care facilities
  • Hotels, motels, and other transient lodging

What Tenants Should Know About the Rental Tax Ban

Expected Rent Savings Starting in 2025

With the elimination of the residential rental TPT, tenants statewide are projected to save more than $230 million annually. Rent payments that previously included a city tax should decrease beginning with January 2025 rent.

Tenants should carefully review rent statements to confirm that no TPT charges appear after December 31, 2024.

Reviewing Rent Statements and Lease Terms

Even though the tax ban is automatic, oversights can occur. If a tenant sees TPT still listed on a rent bill in 2025, the first step is to notify the landlord in writing and request correction.

If the charge continues, tenants may seek help from a qualified attorney or file a complaint with the Arizona Department of Revenue (ADOR). The law places the burden of proof on landlords to show that any additional charges are not improperly tied to repealed TPT.

Tenant Rights and How to Act

Arizona tenants have the right to pay rent without being charged a tax that no longer applies. Tenants who believe they are being billed unlawfully should:

  1. Document rent statements and lease provisions.

  2. Contact the landlord promptly for clarification.

  3. Seek legal counsel or assistance if the problem persists.

Gottlieb Law assists renters with understanding their options, enforcing compliance, and protecting tenant rights under Arizona’s new framework.

Compliance and Enforcement in 2025

Legal Risks of Non-Compliance

Landlords who continue to collect residential rental TPT after January 1, 2025 risk:

  • Enforcement actions from ADOR.

  • Audits and penalties for improper billing.

  • Potential tenant disputes or litigation if overcharges are not corrected.

Government Oversight and Resources

The Arizona Department of Revenue is responsible for implementing the new rules and provides official guidance online. Both landlords and tenants can access compliance updates, FAQs, and support resources through AZTaxes.gov and the ADOR Residential Rental team.

Registering with County Assessors

Although the TPT requirement is eliminated, landlords must still register residential rental properties with their county assessor. This separate requirement remains in force, and penalties can apply for failing to register. Tenants may also check public assessor records to confirm that their rental property is properly registered.

Preparing for Arizona Rental Tax Changes: What You Need to Do Next

The elimination of residential rental TPT in Arizona reshapes how landlords, tenants, and property managers handle rental transactions. Here’s what to keep in mind moving forward:

  • Landlords should update lease agreements, remove TPT billing, and confirm that all property management and accounting systems reflect the new tax rules beginning January 2025.

  • Tenants should carefully review rent statements in 2025 and understand their rights if unlawful TPT charges appear.

  • Property managers should train staff and revise internal procedures to maintain compliance with Arizona’s updated requirements.

  • All parties must understand the statutory exemptions and remember that rental properties must still be registered with county assessors.

Stay Compliant with Legal Guidance

From and after December 31, 2024, cities and towns can no longer impose TPT on residential rentals under A.R.S. § 42-6004(H). While the change reduces costs for tenants and simplifies compliance for landlords, proper preparation is key to avoiding errors, penalties, or disputes.

Gottlieb Law’s real estate attorneys are available to guide landlords, tenants, and property management companies through these changes. Proper legal advice ensures you stay compliant, avoid penalties, and fully benefit from Arizona’s new rental tax ban.

If you want personalized support navigating these updates or need help updating lease agreements and billing systems, call our firm today at 602-899-8188 or schedule a consultation with Gottlieb Law to meet with our experienced real estate attorneys.


This article is provided by Gottlieb Law, PLC for general informational purposes only. It does not create an attorney–client relationship, and it should not be relied on as legal advice. Laws change, and every situation is different. You should consult qualified legal counsel about your specific circumstances.

Understanding Arizona delayed MLS listings and the NAR delayed marketing policy helps sellers protect their interests. Gottlieb Law guides you through real estate law for smooth transactions.
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Delayed MLS Listings: What Arizona Home Sellers Need to Know
Delayed MLS Listings: What Arizona Home Sellers Need to Know 931 671 Gottlieb Law

Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.

Arizona’s real estate market is always evolving, and staying ahead means knowing how new policies impact your home sale. The National Association of Realtors (NAR) recently introduced a delayed marketing policy aimed at giving sellers more control over how and when their properties appear on public platforms.  For Arizona home sellers, understanding this policy alongside state-specific rules is critical. That’s where Gottlieb Law comes in. With deep roots in Arizona real estate law, they guide sellers, buyers, agents, and brokers through these shifting waters, helping you make informed decisions every step of the way.

What Is the NAR Delayed Marketing Policy?

NAR’s “Multiple Listing Options for Sellers” offers sellers choices on how their listings appear publicly. Two key concepts stand out:

  • Delayed Marketing Exempt Listings: These are exempt listings where the seller directs the listing broker to delay public marketing through IDX and syndication for a period allowed by the local MLS.  Each MLS has discretion to determine the length of this delayed marketing period.  This approach allows sellers to keep their homes under wraps initially while still preparing for broader exposure and reflects the seller’s choice to postpone public advertising.
  • Office Exclusive Listings: In this scenario, listings remain private within a brokerage and never reach the broader MLS network.

Sellers must sign a certification acknowledging the benefits they are waiving or delaying, such as broad exposure through the MLS, and confirming their informed decision to opt for delayed marketing or office exclusivity.  Understanding these nuances can significantly affect your home’s exposure and sale timeline, which is why legal guidance is so valuable.

The Multiple Listing Options for Sellers policy is expected to roll out in phases, with each local MLS setting its own rules for implementation. Sellers should confirm with their real estate counsel and listing agent how these policies apply in their market.

Arizona’s Take on Delayed Marketing Policies

Arizona’s largest MLS, ARMLS, has adopted and enforces the Clear Cooperation Policy, which requires listings to be submitted to the MLS within one business day after any public marketing.  However, Arizona provides some flexibility through the “Coming Soon” status, which allows listings to remain in a pre-market phase for up to 30 days.

Not every Arizona MLS interprets NAR’s delayed marketing policy in the same way.  Some are still refining their rules, creating a patchwork landscape that can confuse both sellers and agents.  This complexity underscores the value of working with a seasoned real estate attorney who understands the intricacies of Arizona real estate law in 2025.

Legal Considerations for Arizona Home Sellers

Navigating Arizona real estate law in 2025 requires aligning with both state regulations and NAR’s evolving policies. The Arizona Department of Real Estate oversees how licensed professionals handle property marketing under active listing agreements.  Missteps could lead to disputes over how days on market are calculated or raise concerns about MLS data integrity.

Failing to comply with these regulations exposes sellers to legal risks that can delay,  or even derail, transactions.  Gottlieb Law’s extensive experience can help sellers focus on compliance and avoid costly missteps.

The Upsides and Downsides of Delayed MLS Listings

Choosing to delay MLS listings comes with both benefits and drawbacks.

On the upside, sellers who value privacy, such as public figures or those with tenant-occupied properties, often appreciate the additional control it provides.  Delaying can also give agents flexibility to gauge market interest, refine pricing, and build interest before going fully public.

On the downside, holding back a listing from full public exposure can shrink your buyer pool, potentially extending the time your home remains on the market and impacting sale price.  It may also distort MLS data, complicating property comparisons and influencing buyer perceptions.

Sellers should weigh these factors carefully, with guidance from experienced legal counsel to balance privacy with market reach.

How Gottlieb Law Supports Arizona Buyers, Sellers, Agents, and Brokers

Whether you are a home seller navigating delayed MLS listings or a buyer entering Arizona’s competitive market, Gottlieb Law provides tailored legal insight for real estate transactions.

The firm’s team can advise on everything from drafting airtight contracts to focusing on compliance with MLS rules and the Clear Cooperation Policy.  Real estate agents and brokers need to remain compliant in a fast-changing legal landscape.  From reviewing listing agreements to managing disclosures around office exclusive listings in Arizona, Gottlieb Law can serve as a trusted partner.

Tips for Arizona Sellers Considering Delayed MLS Listings

  • Engage a qualified real estate attorney early. Understanding how delayed marketing options apply to your situation helps prevent surprises.
  • Negotiate listing agreements carefully.  Ensure they clearly outline marketing timelines and privacy protections.
  • Confirm compliance.  Align with both NAR policies and Arizona real estate law 2025 to keep your sale on track.
  • Leverage the “Coming Soon” status.  Arizona’s MLS coming soon status may offer a strategic marketing advantage without violating rules.

Final Thoughts on Arizona Delayed MLS Listings

Arizona home sellers face a complex real estate environment with shifting policies around MLS listings and marketing.  Balancing privacy concerns with the need for broad buyer exposure isn’t always straightforward.  That’s why working with an accomplished real estate law firm like Gottlieb Law is valuable. Having attorneys with the knowledge and experience to guide sellers, buyers, agents, and brokers through these challenges helps position clients for successful transactions.

Ready to Navigate Arizona Real Estate with Confidence?

Selling or buying a home in Arizona comes with unique legal challenges, so don’t go it alone. Connect with Gottlieb Law to get advice and trusted representation that puts your interests first.

Whether you’re managing delayed MLS listings or handling more complex transactions, the team at Gottlieb Law is ready to help you move forward with clarity and confidence.

Call our firm today at 602-899-8188 or schedule a consultation online with Gottlieb Law to meet with our experienced real estate attorneys.

Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.

New Small Estate Affidavit Limits with Arizona HB 2116 - Gottlieb Law
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What You Need to Know About Arizona’s New Small Estate Affidavit Limits Under HB 2116
What You Need to Know About Arizona’s New Small Estate Affidavit Limits Under HB 2116 1152 768 Gottlieb Law

Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.


What Is a Small Estate Affidavit?

A small estate affidavit lets heirs handle the transfer of estate assets without needing to open a full probate case.  It is a faster, more affordable way to settle estates that fall below certain value limits. Under the amended Arizona Revised Statutes § 14-3971, small estate affidavit limits for personal property jump from $75,000 to $200,000 and for real property from $100,000 to $300,000.

These limits had not changed for years despite inflation and rising property values, which made many smaller estates subject to lengthy probate. HB 2116 was signed into law on March 31, 2025, to update those caps and streamline estate transfers.

Who Benefits from the New Limits?

More estates will qualify for the affidavit process, especially those of moderate value, which often include retirees and small business owners.  Estates with personal property up to $200,000 (previously capped at $75,000) and real property up to $300,000 (previously capped at $100,000) now qualify.  This includes surviving spouses, children, or other heirs entitled to inherit under a will or through intestate succession.

Key Changes Under HB 2116

The primary update is the increase in value thresholds for the small estate affidavit:

  • Personal property limits increase to $200,000

  • Real property limits increase to $300,000

These new limits apply to affidavits filed after the law becomes effective in 2025. Because effective dates can shift depending on legislative rules, you should confirm the timing with legal counsel before filing.

What You Need to Know About Filing

Arizona law requires waiting periods before filing:

  • For personal property, the affidavit cannot be filed until at least 30 days after the decedent’s death.

  • For real property, you must wait at least six months after death before filing.

If an estate contains both personal and real property, plan to file after the longer waiting period expires. This helps make sure that all legal requirements are properly fulfilled.

The affidavit should also include:

  • Your name and relationship to the decedent.

  • A statement confirming no probate application is pending or that a personal representative was discharged more than one year ago.

  • An itemized list of estate assets with fair market valuations as of the date of death (for personal property) or county tax roll (full cash value) valuations minus any liens or mortgages (for real property).

  • A statement confirming that all debts, funeral expenses, and final bills have been paid or otherwise addressed.

Accurate valuations and clear documentation are crucial. Misvaluing assets can cause affidavits to be rejected. Because financial institutions, title companies, and other payors may scrutinize affidavits more closely given the higher limits, having a lawyer review or prepare your affidavit is recommended.

Small Estate Affidavit Pre-Filing Checklist

Before submitting a small estate affidavit, gather these documents and speak with your lawyer to confirm everything and to streamline the process:

  • Certified copy of the death certificate

  • Accurate valuations of all personal and real property assets

  • Statements from creditors or evidence debts are paid

  • Affidavits or consents from all heirs who will inherit

Preparing ahead helps avoid surprises and speeds up estate settlement.

When to Consider Full Probate

While the new limits increase the scope of simplified affidavits, some estates will still require formal probate. Estates exceeding either the $200,000 personal property or $300,000 real property thresholds, estates involving complex assets such as closely held businesses or retirement accounts without named beneficiaries, or estates facing creditor disputes will generally need the full probate process. Gottlieb Law can help determine the best path for your situation.

How Gottlieb Law Can Help with Estate Planning and Probate

Our firm brings together experience in Arizona probate law and real estate matters to guide you through estate administration with confidence. Our commitment is to provide clear guidance, ensuring the process unfolds smoothly from start to finish.

Final Thoughts on Small Estate Affidavit Limits and Next Steps

HB 2116’s increase in small estate affidavit limits represents an important opportunity for many Arizona families to simplify the probate process. If you are handling an estate with less than $200,000 in personal property or $300,000 in real property, remember to wait until after the law becomes effective in 2025 before filing your affidavit. Because effective dates can shift depending on legislative rules, you should confirm the timing with legal counsel before filing.

Contact Gottlieb Law today for a review of your estate or help with preparing and filing affidavits under the new law. We offer comprehensive legal services covering real estate transactions, real estate litigation, and probate to support you at every stage.

Call our firm today at 602-899-8188 or schedule a consultation online with Gottlieb Law to review your estate planning with our experienced real estate attorneys.

Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.

Smart Home Technology and Privacy Laws - Essential Insights for Arizona Tenants and Landlords - Gottlieb Law
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Smart Home Technology and Privacy Laws: Essential Insights for Arizona Tenants and Landlords
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Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.


Smart home technology, including thermostats, door locks, cameras, and voice assistants like Alexa, can collect far more than just ambient data. These devices may capture behavioral habits, movement patterns, and, in some cases, snippets of private conversations — especially if audio recording features are enabled.

Because of that, Arizona landlords and tenants must tread carefully. Under Arizona’s wiretap law, A.R.S. § 13-3005, it is unlawful to intercept oral or electronic communications unless the person is a party to the communication or has obtained consent from at least one party involved. Similarly, federal law, particularly the Wiretap Act, part of the Electronic Communications Privacy Act (ECPA), prohibits the intentional interception or use of wire, oral, or electronic communications without at least one party’s consent, and imposes serious civil and criminal penalties for violations.

Tenants in Arizona have a well-established legal right to privacy in their homes. This right is supported by the Arizona Residential Landlord and Tenant Act (ARLTA) and long-standing common law protections against unreasonable intrusion. When landlords install smart devices, they walk a legal tightrope. They should ensure clear lease terms, obtain explicit tenant consent, and strictly avoid placing any surveillance or recording devices in areas where tenants have a heightened expectation of privacy — such as bedrooms and bathrooms.

Tenants can also take proactive steps. They can negotiate data-sharing limits, opt out of certain device features, and hold landlords accountable if those boundaries are crossed. And with the increasing use of AI-based tenant screening systems, there is a growing risk of data misuse and potential housing discrimination, something both landlords and tenants should be aware of.

Here are some of the key details landlords and tenants need to know about smart home technology and privacy rights in Arizona.

Introduction to Smart Home Technology in Rentals

Defining Smart Home Devices

Smart home devices in rental housing include Wi-Fi-enabled locks, smart thermostats, motion sensors, indoor cameras, lighting systems, and voice assistants like Google Home or Amazon Alexa. These tools are marketed as convenience-boosters, but in practice, they often collect a continuous stream of data about the activities inside a rental unit, sometimes with or without the tenant’s full awareness.

For landlords, smart technology offers potential benefits: lower utility bills, streamlined maintenance, and enhanced security. But for tenants, the same systems can introduce serious concerns about privacy, consent, and data control, especially when surveillance devices are installed or controlled by someone else.

Adoption Trends in Arizona

Across Arizona, smart home tech is rapidly shifting from a luxury feature to a standard expectation. Landlords increasingly install smart locks, security cameras, and thermostats during turnover renovations or as a way to attract tech-forward tenants. At the same time, many tenants are adding their own devices, including doorbell cameras, smart sensors, and connected lighting, to increase personal security and comfort.

Ownership and access issues become even more complicated when both landlord and tenant install smart tech within the same unit. These situations may require clear lease terms, documented consent, and written policies to ensure neither party oversteps legal boundaries.

Federal Privacy Framework

Electronic Communications Privacy Act (ECPA)

The Electronic Communications Privacy Act (ECPA) is a federal statute that prohibits the intentional interception, use, or disclosure of wire, oral, or electronic communications without proper legal authority or the consent of a party to the communication. This could include not only voice recordings and messages but also data transmitted through smart thermostats, security cameras, smart locks, and other connected home devices.

If a landlord installs a smart home system that captures or transmits tenant data, such as a doorbell camera with a microphone or a smart thermostat that detects presence, and accesses that data without the tenant’s informed consent, they may risk violating federal law.

In a rental context, landlords are typically not present during tenant communications, meaning they may not be able to rely on the one-party consent rule to justify surveillance.

Violations of the ECPA can result in significant penalties.  

Arizona State Privacy Protections

Consent to Recording

It is unlawful under Arizona law to intentionally intercept a conversation or electronic communication without the consent of at least one party.  In most landlord–tenant scenarios involving smart devices, the landlord is not a party to tenant conversations and is not present during recordings. That means any audio recording without tenant consent, even if incidental, may be criminally unlawful under Arizona’s wiretap statute.

Surreptitious Photography and Videotaping

Arizona law also criminalizes surreptitious recording in private areas, such as bedrooms, bathrooms, and dressing areas. Under A.R.S. § 13-3019, it is unlawful to install or use any device for visual surveillance in areas where people have a reasonable expectation of privacy, regardless of whether sound is also captured.

Arizona Residential Landlord and Tenant Act (ARLTA)

The ARLTA provides tenants with the right to privacy and quiet enjoyment of their rental unit. It also restricts how and when landlords can access the premises.

Under A.R.S. § 33-1343, a landlord may only enter a tenant’s dwelling with at least 48 hours’ written notice, and at a reasonable time, unless it’s an emergency.

Installing, inspecting, or adjusting smart home devices inside a rental unit, including thermostats, cameras, or smart locks, may qualify as an “entry” under ARLTA. Landlords cannot legally stop by to check the smart tech without following the notice and timing requirements.

Lease Drafting and Consent Mechanisms

Smart-Tech Addenda

If smart devices are installed in the rental, the lease should clearly identify each device and its function. Landlords should obtain informed, written consent for any device that collects data,  especially if it records audio, video, or occupancy information. A well-drafted addendum can help ensure clarity and reduce risk.

Data Security and Third-Party Risks

FTC and Industry Guidance

The Federal Trade Commission (FTC) encourages incorporating privacy by design in smart home systems. This means limiting data collection to what is necessary, using secure transmission and storage practices, and offering clear options for user control. While not a binding legal standard, following FTC guidance may help demonstrate reasonableness in the event of a legal dispute.

Vendor and Platform Selection

Landlords should choose reputable device vendors that offer end-to-end encryption, access logging, and clear privacy policies.

Tenant Rights and Remedies

Breach of Privacy Claims

If a landlord installs or uses smart devices without valid consent, or places them in areas where tenants have a reasonable expectation of privacy, tenants may pursue claims under Arizona law.  

Lease-Based Remedies

Violations may also support claims for breach of contract or breach of the covenant of quiet enjoyment. Tenants may bring actions to pursue their rights and enforce lease terms.  

Emerging Issues in AI and Tenant Screening

AI-driven tenant screening tools can evaluate a range of data points and these systems may inadvertently introduce unintended bias.  If a tool disproportionately impacts applicants based on protected characteristics such as race, national origin, age, or disability, landlords may face scrutiny or liability under the federal Fair Housing Act and similar state laws.

Best Practices for Landlords and Tenants

For Landlords:

  • Clearly identify each smart device in the lease, including its function
  • Obtain informed, written consent for every device that collects or records data
  • Avoid installing devices in private areas like bedrooms and bathrooms
  • Use secure platforms and restrict access to authorized individuals only
  • Train all staff and property managers on privacy risks and applicable laws

For Tenants:

  • Carefully review any smart tech provisions in the lease; negotiate when needed
  • Ask to opt out of features that track movement, audio, or video
  • Request device access logs or documentation of how data is used
  • If something feels intrusive or unclear, consider consulting a lawyer before signing

How Gottlieb Law Can Assist

Policy Drafting: We can help landlords write tech-specific lease addenda that protect tenants’ privacy in the process.

Dispute Resolution: Whether you’re a tenant dealing with unauthorized surveillance or a landlord facing privacy claims, our team is ready to help.

Litigation and Defense: Whether it’s a privacy dispute, lease violation, or other legal conflict, we manage the litigation process from start to finish.

Fair Housing: We evaluate screening tools and help draft nondiscrimination policies that stand up to legal scrutiny.

Thinking about adding smart tech to your lease—or concerned about how it’s being used? Gottlieb Law assists clients with all aspects of Arizona Landlord–Tenant Law.

Work With Gottlieb Law Today

Whether you’re outfitting a rental unit with smart locks or trying to figure out why your living room camera keeps blinking, the legal line between security and surveillance is sharper than ever. Gottlieb Law can make sure your rights are protected and can assist with a wide range of landlord tenant issues.

Call our firm today at 602-899-8188 or schedule a consultation online with Gottlieb Law and get clarity on your smart home technology in rental properties today.

Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.

Adaptive Reuse in Arizona - Legal Strategies for Converting Obsolete Commercial Buildings into Modern Spaces - Gottlieb Law
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Adaptive Reuse in Arizona: Legal Strategies for Converting Obsolete Commercial Buildings into Modern Spaces
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Gottlieb Law, PLC provides this article for informational purposes only. Reading it does not create an attorney-client relationship, and you should not act or rely on any of the information herein without first consulting qualified legal counsel. Laws and local procedures change frequently. Always seek legal advice specific to your situation.


Arizona’s Adaptive Reuse Surge: What’s Driving It

For years, vacant warehouses, outdated office towers, and underutilized commercial corridors dotted Arizona’s urban core. Now? They’re buzzing again, but not as what they once were. Thanks to a powerful mix of state-level legal reforms and community-driven development incentives, these properties are being reimagined as housing, creative workspaces, art hubs, and more.

This shift, known as adaptive reuse, is transforming how developers, investors, and even first-time property owners approach Arizona real estate.

But this isn’t just about architecture or smart design. The real momentum comes from Arizona’s evolving legal framework, which now removes many of the zoning barriers and procedural roadblocks that once made redevelopment costly or time-consuming.

This article details and clarifies the key updates to our previous article on converting commercial buildings into residential spaces in Arizona. Let’s dive into what you need to know.

What Arizona Law Actually Says About Adaptive Reuse

Arizona clarified its stance with House Bill 2110 and the updated A.R.S. § 9‑462.10: when a project qualifies, cities must allow adaptive reuse or multifamily development without requiring rezoning, conditional use permits, or other public-hearing-based approvals.

So if you own a former storefront and want to convert it into residential lofts, and your property meets the criteria, you may be able to bypass the traditional rezoning process entirely, subject to objective standards.

Under A.R.S. § 9‑462.10, “adaptive reuse” refers to converting an existing building to multifamily use while maintaining some or all of its original structure. But importantly, the law also permits partial or full demolition, depending on the project’s needs. Redevelopment doesn’t have to preserve the entire building to qualify.

Cities with populations over 150,000, including Phoenix and Tucson, are now required to adopt objective standards to permit adaptive reuse projects by right. These standards may include:

  • Reduced parking requirements

  • Code alternatives for older structures

  • Flexibility for materials and setbacks in historic properties

Is Your Commercial Building Eligible? Here’s What to Know

Eligibility depends on several key factors:

  • Structure Type

The building must typically be an existing commercial, office, or mixed-use structure located within a qualifying municipality (population 150,000+). Industrial and institutional properties are generally excluded.

  • Parcel Size

The parcel must be at least 1 acre but no more than 20 acres in size. Projects on smaller infill lots or very large commercial sites do not qualify under this statute.

  • Condition

The building must be economically or functionally obsolete, either in a state of disrepair or with at least 50% vacancy in its leasable space.

  • Affordability Set-Aside 

The project must set aside at least 10% of total units for moderate- or low-income housing, for a minimum of 20 years. This requirement applies even if the project is not seeking tax credits or other housing subsidies.

When You Don’t Need Rezoning (And When You Still Might)

The biggest legal change was the move toward “by-right” development. Under A.R.S. § 9-462.10, qualifying adaptive reuse and multifamily projects in large cities can bypass traditional rezoning processes, as long as they meet objective criteria and aren’t located in restricted areas.

Restricted areas include:

  • Historic districts or buildings designated historic at the local, state, or national level

  • Airport influence zones

  • Military facility buffer areas

  • Tribal lands

Height and Density Rules:

The statute allows projects to build to the highest allowable height and density for multifamily or mixed-use zoning within 1 mile of the site, up to a cap of five stories. However, if the site is directly adjacent to single-family zoning, building height may be limited to two stories within 100 feet of that edge.

Setbacks and Parking:

Cities cannot impose stricter setback requirements than those in the existing zoning code. Adaptive reuse projects may retain nonconforming setbacks, and parking requirements cannot exceed those for standard multifamily residential projects, unless the project is mixed-use.

Adaptive Reuse Starts with a Plan: How to Launch Your Project the Right Way

Whether you’re converting an old department store, warehouse, or office block, successful adaptive reuse starts with strategic planning. Here are key steps to help your project launch on solid legal and financial footing:

Feasibility First

Analyze the market, the physical condition of the property, and how your project aligns with state and local incentive criteria.

Design for Reality

Hire architects and engineers who understand both code compliance and preservation standards, not just one or the other. Early coordination can save months of rework and help frame viable code alternatives when needed.

Permitting and Variances

Cities like Phoenix allow for code equivalencies and waiver requests, but navigating deadlines, documentation, and evidentiary standards can be complex. Legal counsel can help reduce risk and avoid delays.

Your Legal Partner in Arizona Adaptive Reuse and Beyond

Arizona’s legal landscape is finally catching up with how its cities want to grow and that opens the door for developers, property owners, and civic-minded entrepreneurs to breathe new life into the state’s aging building stock.

At Gottlieb Law, we advise clients on commercial projects and can assist with legal strategy, adaptive reuse projects, and development goals.  

Need help with a legal issue?  Call us at 602-899-8188 or use our Contact Us page to schedule your consultation.

Gottlieb Law, PLC provides this article for informational purposes only and nothing herein creates an attorney-client relationship. Do not act or rely on any of the information contained herein without first consulting qualified legal counsel. Laws change frequently, and every project involves unique circumstances.

Arizona's 2024 real estate laws: key updates for agents, buyers, & sellers, impacting licenses, contracts, disclosures, & consumer protection.
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Arizona’s Homestead Exemption in 2025: Higher Caps & Case Law Updates
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Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.

The Arizona homestead exemption continues to evolve, and the 2025 inflation adjustment brings even more significant changes for homeowners. Following Proposition 209’s change to the homestead exemption laws, homeowners who own property that qualifies as homestead property now enjoy a higher homestead cap—which is currently estimated to exceed $425,000. 

If you haven’t reviewed your exemption strategy since our last guide in early 2024, Understanding the Arizona Homestead Act: A Complete Guide for Homeowners, this follow-up is your legal refresher and contains an overview of some key updates in 2025.

What’s New Since the Last Homestead Guide?

As a reminder, following voter approval of Arizona’s Proposition 209 (the Predatory Debt Collection Protection Act), the homestead exemption increased to $400,000 as of December 5, 2022. And because annual cost-of-living adjustments (COLAs) are now baked into the statute, that amount was indexed for inflation starting January 1, 2024, and is currently estimated to exceed $425,000.

That said, in March 2025, the Arizona Court of Appeals, in Michael K. Reilly & Sierra Pipeline, LLC v. Canale, 565 P.3d 1066, 1067 (Ariz. Ct. App. 2025), clarified that the amendment applies prospectively and does not affect “rights and duties” that matured before the Act’s effective date of December 5, 2022. That’s important, and it’s not the only new legal development worth noting.

How Proposition 209 Updated Arizona’s Homestead Exemption

The Updated Cap Only Applies Prospectively

Prop 209 didn’t just boost the homestead exemption; it also triggered automatic annual increases. Every January, the cap adjusts based on the prior August’s Consumer Price Index (CPI).

Keep in mind, however, that the exemption amount a creditor may overcome depends not just on when a judgment was recorded, but whether their right to enforce it had matured before December 5, 2022. As clarified in Reilly v. Canale, a recorded judgment alone does not entitle a creditor to the old $250,000 cap unless they had also initiated enforcement – and obtained a writ of execution – before that date.   

Additional Protections from Prop 209

While this article focuses on homesteads, Prop 209 also improved other exemptions:

  • Motor vehicle equity: up to $15,000 ($25,000 if disabled)
  • Household goods: $15,000
  • Bank accounts (non-wage garnishment): now protected up to $5,000
  • Wage garnishment: reduced to 10% of disposable income (previously 25%)

These changes affect broader asset protection strategies, especially in bankruptcy or judgment defense.

Filing a Homestead Declaration: Why It Still Matters

Homestead Declaration in Arizona (Updated for 2025)

Even though Arizona’s homestead exemption is automatic, filing a Homestead Declaration still provides clear public notice.  While not required, it can help resolve disputes over intent or primary residence, especially in bankruptcy or multi-property scenarios.  

Which Properties Actually Qualify for Homestead Protection?

This is where things get a bit tricky. Arizona’s homestead laws don’t apply to everything with a roof.

Eligible Properties:

  • Primary residences (single-family homes, condos, townhomes)
  • Mobile/manufactured homes permanently affixed to owned land

May Not Be Eligible:

  • Motorhomes, RVs, and trailers (unless affixed and recognized as real property)
  • Houseboats
  • Investment properties or second homes
  • Mixed-use properties (unless the residential portion is clearly designated)

Bankruptcy Filings and the Homestead Cap

Arizona Homestead Exemption Bankruptcy Rules May Also Apply

Bankruptcy law brings its own complications and limitations. For example, federal caps may reduce the homestead protection if the home was acquired recently or if the homeowner hasn’t lived in Arizona long enough. This is where a skilled real estate and bankruptcy lawyer makes all the difference.

Homestead Trust Planning in Arizona

Trusts are useful estate planning tools, but in Arizona, you need to proceed carefully. Changing title to your property—especially into a trust or LLC—can affect whether the homestead exemption applies.

Key tips:

  • Use caution when titling your primary residence in an LLC, as it may disqualify the property from homestead protection.
  • If you’re using a revocable living trust, ensure you are named as both trustee and beneficiary.

Trust strategies can help transfer property, avoid probate, and protect surviving spouses. But without proper legal structuring, they can unintentionally compromise your homestead rights. Always consult experienced real estate and probate counsel before making estate planning decisions that may impact your home.

Divorce, Death & Homestead Implications

Homestead protections aren’t just about bankruptcy or creditors — they can also impact divorce settlements and probate proceedings. Having qualified legal counsel in real estate, bankruptcy, probate, and family law can make all the difference.

Holding property as joint tenants with right of survivorship (JTWROS) can help avoid probate while preserving homestead protections, depending on the circumstances.

Creditor Enforcement & Legal Traps to Avoid

Not all equity is safe. Some liens may reduce or eliminate homestead protection.  It is important to consult with qualified counsel to confirm whether a lien might impact the homestead exemption.

Gottlieb Law: Trusted Counsel for Arizona Homeowners

Whether you’re protecting your home in Phoenix, navigating a bankruptcy, or planning your estate, Gottlieb Law is here to help. We understand how Arizona’s evolving homestead laws impact:

  • Homestead Exemptions
  • Trust & Estate Planning
  • Divorce Property Divisions
  • Lien Defense

We stay current on every statutory update, CPI adjustment, and case law interpretation so you don’t have to.

Ready to Explore the Homestead Exemption?

Your home is likely your most valuable asset. Don’t leave it exposed.

Whether you’re dealing with judgment creditors, planning for divorce, or preparing for bankruptcy, Gottlieb Law can help you identify risks and create a strategy tailored to your situation.

Call Gottlieb Law today at 602-899-8188 or use our Contact Us page here to schedule your initial consultation.

Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.

Arizona Real Estate Disclosure Laws - Gottlieb Law - Arizona Real Estate Law Firm
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Arizona Real Estate Disclosure Laws: What Sellers and Buyers Should Know in 2025
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Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.


Whether you’re dealing with a traditional home sale, vacant land, or a wholesale flip, real estate deals in Arizona can unravel fast if the right disclosures aren’t made up front.  What seems like a straightforward sale can quickly turn into a legal mess without the right protections in place. One overlooked disclosure or a missing form can derail a deal or trigger legal headaches long after closing. In 2025, it’s more important than ever to understand both the disclosure rules that govern real estate transactions and the duties placed on agents. Whether you’re selling your first home, managing multiple investment properties, or guiding clients through a deal, Arizona’s changing disclosure laws affect every step. Staying informed is the best way to avoid delays, disputes, and legal risks.

This updated guide breaks down exactly what Arizona law requires in plain, practical terms. You’ll learn what the Affidavit of Disclosure under A.R.S. § 33-422 still demands in certain unincorporated or vacant land transactions and how HB 2747 reshaped wholesaling practices. It also covers the duty placed on real estate licensees under ADRE Rule R4-28-1101, with real-world examples, practical tips to avoid common missteps, and insight into how courts are applying these rules today.

If you read our original article Understanding Real Estate Disclosure Laws in Arizona When Selling a Home (from December 2022), you’ll recognize the key concepts. This is an up-to-date guide that provides a refresher on long-standing disclosure rules, introduces newer laws, and highlights the most common pitfalls catching Arizona property sellers and buyers off guard in 2025.

Understanding A.R.S. § 33-422: Key Disclosures for Rural Land Sales

While most traditional home sales in Arizona rely on the SPDS (Seller’s Property Disclosure Statement), a different set of disclosure obligations applies when selling land in unincorporated county areas outside of subdivisions. A.R.S. § 33-422 governs these types of transactions—typically raw or lightly improved land—and requires sellers to furnish an Affidavit of Disclosure when offering five or fewer parcels that are not part of a recorded subdivision plat.

Even though this statute doesn’t apply to most urban or suburban residential sales, it’s a critical compliance step in rural land deals—and one that’s often overlooked.

The Affidavit of Disclosure carries real weight in applicable real estate transactions. It forces the seller to address a detailed list of property-specific conditions that could materially affect the buyer’s decision. These include whether the property has legal and physical access via public or private roads, whether it lies within a designated floodplain or flood hazard zone, and what systems are in place for sewage disposal and water access. Sellers must also disclose if there are any current violations of county or municipal zoning codes, unresolved code enforcement actions, or safety issues tied to the parcel. This ensures that buyers are not left guessing about land usability, environmental risks, or regulatory entanglements that could delay development or financing.

Just as important as what’s disclosed is what cannot be avoided. Arizona law makes clear that any effort to waive or contract around the disclosure requirement is void and unenforceable. Even if the buyer signs a contract with “as-is” language or broad indemnity clauses, the seller is still liable if they knowingly omit material facts or include misleading information. Under subsection D, buyers may sue for actual damages, rescind the transaction, and potentially recover attorney fees and court costs if a dispute arises. In short, failing to provide an accurate and timely affidavit doesn’t just risk losing the sale — it can open the door to serious financial consequences and court-ordered remedies.

What to Know in 2025

Wholesale Buyer and Seller Disclosures (A.R.S. § 44-5101)

In 2022, Arizona adopted A.R.S. § 44-5101 (originally introduced as House Bill 2747) to regulate wholesale real estate transactions. These involve buyers contracting to purchase residential property and then assigning the contract to a third party—usually for profit—without closing on the deal themselves.

Under the statute:

  • A wholesale buyer must disclose in writing to the seller that they are a wholesale buyer before entering into any binding agreement.

  • A wholesale seller (i.e., someone assigning a contract without holding legal title) must disclose in writing to the buyer that:

    • They are acting as a wholesale seller,

    • They hold only an equitable interest in the property, and

    • They may not be able to convey title.

Failure to comply gives the other party a powerful remedy:

  • A seller may cancel the contract and keep earnest money if the wholesale buyer fails to disclose.

  • A buyer may cancel and recover their earnest money if the wholesale seller fails to disclose.

These disclosures are now a regular part of compliance reviews and transaction audits. In 2024, courts upheld rescission rights in multiple cases involving wholesale deals that lacked proper notice—even when the end buyer was satisfied with the property.

The Role of Agents and Brokers: AAC Rule R4-28-1101

While sellers have a clear legal duty to disclose known material facts about a property, Arizona real estate licensees—including agents and brokers—are held to an independent and enforceable standard of conduct under Arizona Administrative Code Rule R4-28-1101. This rule outlines the professional disclosure duties that apply to licensees in all transactions, regardless of what the seller discloses or what’s stated in the SPDS.

Material Fact Disclosure – Rule R4-28-1101(B)

Under Subsection B, a licensee must disclose in writing any information they possess that materially or adversely affects the consideration to be paid by any party to the transaction. This includes:

  • Information that the seller or lessor is or may be unable to perform;

  • Information that the buyer or lessee is or may be unable to perform;

  • Any material defect existing in the property being transferred;

  • The existence of any lien or encumbrance on the property.

This duty is triggered by the licensee’s own knowledge, whether obtained through observation, past experience, conversations with clients or third parties, or any other means. The disclosure must be made in writing, even if the seller fails to include the issue in the SPDS or if the sale is labeled “as-is.”

Conflict of Interest Disclosure – Rule R4-28-1101(E)

Under Subsection E, a licensee must also disclose in writing and before any binding agreement is signed if:

  • They are a licensed agent acting as a principal in the transaction;

  • A party to the transaction is a family member;

  • The licensee or their family member has a financial interest in the transaction other than the agent’s compensation;

  • The buyer or seller is the licensee’s employing broker or works for them.

These disclosures ensure transparency and help prevent future legal disputes over hidden relationships or dual roles.

Dual Representation – Rule R4-28-1101(F)

Under Subsection F, a licensee may not accept compensation from, or represent, more than one party in a transaction without prior written consent from all parties. This provision directly impacts dual agency situations and must be carefully documented.

ADRE Enforcement Trends

In recent years, ADRE has taken a more proactive approach in enforcing these rules. Complaints for nondisclosure, conflict of interest, and dual agency violations are among the most common reasons agents face investigations. Sanctions have included fines, license suspensions, public discipline, and—in serious cases—revocation.

Agents and brokers must understand that these duties exist independently of the seller’s obligations. An agent can face disciplinary action even if the client was the one who withheld the information.

Practical Takeaway

Given the stakes, licensees are strongly encouraged to:

  • Make all material disclosures in writing;

  • Document communications and potential red flags during the transaction;

  • Avoid assuming that the SPDS or “as-is” language protects them; and

  • Consult a qualified real estate attorney to clarify gray areas or update internal disclosure procedures.

Because every transaction is fact-specific, any questions about disclosure duties should be addressed with experienced legal counsel familiar with Arizona real estate law and ADRE rules.

Common Disclosure Missteps and Legal Outcomes

As Arizona’s disclosure laws have expanded, so has the volume of litigation tied to real estate transactions. Buyers, sellers, agents, and wholesalers are increasingly at the center of lawsuits where a missing or poorly handled disclosure becomes the central issue in litigation. Simply completing standard forms or relying on boilerplate contract language is not enough to avoid liability. Below are some of the most common disclosure mistakes—and what recent outcomes reveal about how the law is being enforced.

Misunderstanding the Meaning of “As-Is”

Many sellers believe that selling a property “as-is” eliminates the need to disclose known defects. That assumption is incorrect. An “as-is” clause may limit a buyer’s post-inspection remedies, but it does not excuse the seller from disclosing known material facts. This is especially critical when the seller is aware of major issues such as foundation cracks, prior water damage, or unpermitted additions. Sellers who treat an “as-is” label as a shield from their disclosure obligations often find themselves defending lawsuits for fraud, negligent misrepresentation, or breach of statutory disclosure duties.

Overlooking Procedural Requirements in Wholesale Deals

The wholesale disclosure rule under A.R.S. § 44-5101 (formerly HB 2747) is not flexible. The required notice must be provided in writing and before any binding contract is signed. Investors who assume they can disclose later—or skip the step entirely if the transaction closes smoothly—are missing the point of the law. Arizona treats this requirement as a mandatory procedural safeguard, not a mere formality. Failing to comply can result in rescission rights, loss of earnest money, or administrative discipline, even if no property defects arise.

Consult a Real Estate Attorney Early

These examples highlight emerging patterns in Arizona real estate litigation—but every case turns on its specific facts. Even a small oversight can evolve into a major liability depending on how disclosures were handled and what the parties knew—or should have known—at the time. When there’s any uncertainty about what must be disclosed, or how and when to disclose it, the safest approach is to consult an experienced real estate attorney before the problem arises. Agents and brokerages should also conduct periodic compliance reviews with counsel to stay current with disclosure rules and prevent costly missteps.

Best Practices for Buyers, Sellers, and Real Estate Professionals

Navigating Arizona’s real estate disclosure laws in 2025 requires more than filling out a few standard forms. With increasing scrutiny from regulators and growing legal risks tied to incomplete or unclear disclosures, buyers, sellers, and real estate professionals benefit from adopting best practices that prioritize transparency and legal compliance. The following steps can help reduce confusion, prevent disputes, and keep transactions on track.

1. Understand and Use the SPDS Form—If Applicable

The Seller’s Property Disclosure Statement (SPDS) is a widely used form developed by Arizona REALTORS® to help sellers disclose known material facts about a property. It is the default disclosure tool in most residential transactions involving REALTOR® members. The updated version includes updated questions addressing topics such as investor involvement, zoning, and environmental history that were not as clearly addressed in prior versions.

Sellers working with REALTOR® professionals should ensure they are using the most current SPDS version and review it line by line for accuracy. While the SPDS form itself is not required by law and may not be appropriate for transactions involving non-REALTOR® parties, the core obligation to disclose known material facts applies regardless of the form used.  Thus, even if a seller does not use the SPDS form–or uses a different format entirely–the legal duty to disclose known material facts still applies.  Arizona law requires transparency, no matter what paperwork is used.  Note: Some categories of information are not legally required to be disclosed under Arizona law.  When in doubt, consult legal counsel.  Non-members should consult a qualified real estate attorney or licensed professional to determine the appropriate format for meeting their disclosure obligations.

2. Disclose Wholesale Involvement Early and Clearly

If a buyer or seller is participating in a wholesale transaction—where the buyer intends to assign the contract to another party—state law requires that status to be disclosed in writing before any binding agreement is signed. Under A.R.S. § 44-5101, failure to provide timely wholesale disclosure can result in the right to cancel the contract and other legal consequences.

Sellers should confirm whether the buyer intends to complete the transaction or assign it. Wholesalers should proactively provide the required disclosures upfront—even if they believe the other party is already aware of their role. Addressing wholesale involvement clearly helps avoid disputes and ensures that all parties are operating with informed consent.

3. Provide Regular Training and Legal Review for Real Estate Professionals

Brokerages and team leaders should provide ongoing training to ensure agents understand the full scope of their disclosure obligations—especially those set out in A.A.C. R4-28-1101. This Arizona Administrative Code rule requires agents to disclose in writing any information they possess that may materially or adversely affect a party’s decision in a transaction, regardless of whether the seller chooses to disclose it.

Because this duty depends on the agent’s actual knowledge and professional judgment, compliance requires more than just initial licensing education. Brokerages should hold periodic legal checkups with real estate attorneys to review practices, update risk management protocols, and clarify grey areas. Proactive training and review can significantly reduce the risk of consumer complaints, regulatory actions, or lawsuits.

How Gottlieb Law Helps You Stay Protected

At Gottlieb Law, we represent both buyers and sellers in a wide range of Arizona real estate transactions. Our experienced team offers strategic guidance and risk prevention tools at every stage of the transaction.

Here’s how we help:

  • Document and Disclosure Review
     We review real estate transaction documents to ensure compliance and accuracy.

  • Rescission and Litigation Support
     We represent parties in disputes involving nondisclosure, fraud, or contract rescission—whether pre-litigation or in court.

  • Regulatory Guidance for Licensees
     We advise brokers and agents on ADRE Rule R4-28-1101 compliance and help resolve disciplinary or complaint matters.

  • Custom Contracts and Clauses
     We draft and revise custom contract language to mitigate disclosure risks in unique or high-stakes situations.

Whether you’re preparing to list a property, purchasing your next home, or dealing with a disclosure-related dispute, Gottlieb Law brings clarity, protection, and strategic foresight to every step of the process.

Final Takeaway on Arizona Real Estate Disclosure Laws

Arizona real estate transactions aren’t casual handshake deals.  If you’re unsure whether your current disclosures meet Arizona’s legal standards, don’t wait for a lawsuit to find out. Let Gottlieb Law review your paperwork, identify risks, and provide the confidence you need to move forward securely.

Call Gottlieb Law today at 602-899-8188 or use our Contact Us page here to schedule your initial consultation.

Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.

Subordination and Attornment in SNDA Agreements - What Every Commercial Tenant Should Know - Gottlieb Law
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Subordination and Attornment in SNDA Agreements: What Every Commercial Tenant Should Know
Subordination and Attornment in SNDA Agreements: What Every Commercial Tenant Should Know 998 665 Gottlieb Law

Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any action in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.


An SNDA isn’t just legal jargon buried in the fine print — it’s a vital agreement that can mean the difference between business continuity and unexpected disruption. Whether you’re a commercial tenant investing heavily in your space or a landlord securing financing, understanding the dynamics of Subordination, Non-Disturbance, and Attornment (SNDA) is essential. These agreements set the rules for what happens to your lease if the property changes hands or the landlord defaults on a loan — balancing the sometimes competing interests of tenants, landlords, and lenders.

In this article, we take a closer look at two critical components of every SNDA: subordination and attornment. You’ll see how these provisions work together to protect a lender’s priority while ensuring your lease can survive a foreclosure. More importantly, you’ll learn why negotiating clear, fair terms is a strategic advantage for all parties — and how Gottlieb Law can help you secure your lease rights with confidence. Read on to protect your lease, safeguard your business, and negotiate from a position of strength.

The Role of SNDA Agreements

Commercial leasing is often more than just signing a lease and paying rent. Hidden in the fine print are agreements that safeguard all parties involved—landlords, tenants, and lenders—against potential risks. A critical yet often underappreciated document in commercial leasing is the Subordination, Non-Disturbance, and Attornment Agreement (SNDA). This comprehensive legal safeguard plays a pivotal role in defining the relationship between tenants, landlords, and lenders when ownership shifts or financial difficulties arise.

Why SNDA Agreements Are Essential

An SNDA agreement establishes a legal framework to address what happens to a tenant’s lease in challenging scenarios, such as foreclosure or property sale. While tenants typically focus on rent, terms, and renewal clauses, the SNDA ensures their right to remain in the leased space isn’t jeopardized by external circumstances beyond their control. Without it, tenants face uncertainty that could disrupt their operations, putting their businesses at risk.

An SNDA serves three key functions, each reflected in its main components:

  • Subordination: Establishes that a tenant’s lease holds a lower priority compared to the lender’s mortgage. This provision ensures the lender’s interests come first, often as a condition for financing the property.
  • Non-Disturbance: Provides reassurance to tenants that, even in the event of foreclosure, they can continue their lease without interruption.
  • Attornment: Ensures tenants honor their lease terms with a new property owner, maintaining stability even if ownership changes hands.

Together, these clauses balance the interests of all parties involved, protecting the lender’s financial investment, the landlord’s property value, and the tenant’s business operations.

A Vital Tool for Stability

For landlords, an SNDA agreement is often necessary to secure financing or refinancing. For lenders, it provides peace of mind that their investment is protected and tenants will continue honoring their leases. For tenants, it ensures business continuity—a critical factor for commercial operations that rely on predictable costs and uninterrupted access to their leased space.

SNDA agreements are especially significant in long-term leases or leases tied to specialized spaces, like retail outlets, restaurants, or industrial facilities. The stakes are high for these tenants, who may have invested heavily in customizing their space or building a customer base in a specific location. A well-negotiated SNDA helps ensure that tenants aren’t left in limbo during ownership transitions or foreclosure proceedings.

Spotlighting Subordination and Attornment

While the non-disturbance clause is often highlighted for its tenant protections, the subordination and attornment provisions are equally critical. These elements work together to protect the lender’s interests while ensuring the tenant remains operational. Subordination adjusts the lease’s priority relative to the lender’s mortgage, and attornment obligates the tenant to recognize a new owner as their landlord, ensuring continuity.

Understanding the finer points of subordination and attornment is essential for any commercial tenant seeking to protect their rights. These provisions, when negotiated effectively, can provide a layer of stability in an otherwise unpredictable leasing landscape.

What Is Subordination in an SNDA Agreement?

Subordination refers to the tenant agreeing that their lease will rank below the lender’s mortgage in terms of priority. If the property is foreclosed, the lender’s claim to the property takes precedence over the tenant’s lease rights unless the SNDA includes a non-disturbance clause. This clause ensures the tenant can continue operating without interruption, even in the event of foreclosure.

Why Subordination Exists

Lenders often require subordination because a commercial mortgage represents a significant financial investment. They need assurance that their interest in the property will take priority over existing leases, giving them confidence that they can recover their investment in case of default. For landlords, agreeing to subordination facilitates obtaining or refinancing loans, as lenders are more willing to provide funding when their rights take precedence over tenant agreements.

Subordination is also essential for maintaining the property’s financial viability. Without subordination, a lender might hesitate to extend financing, potentially jeopardizing the landlord’s ability to maintain or improve the property, which could indirectly affect tenants as well.

Tenant Implications

While subordination might initially seem like a disadvantage for tenants, it is a standard practice in most commercial leases and part of the give-and-take required to secure space in a competitive market. When paired with a strong non-disturbance clause, subordination becomes less concerning, as tenants gain a measure of protection for their leasehold rights even in a foreclosure scenario. This combination reassures tenants that they can continue their business operations with minimal disruption, regardless of ownership changes.

Negotiating Favorable Subordination Terms

For tenants, it’s critical to approach subordination with careful consideration to ensure their interests are protected. Here are key steps to negotiating favorable terms:

  • Verify non-disturbance protections: Always confirm the agreement includes a non-disturbance clause explicitly safeguarding your right to remain in the property.
  • Clarify lease continuation terms: Make sure the agreement outlines what will happen to your lease obligations during and after foreclosure. This includes rent amounts, renewal options, and maintenance responsibilities.
  • Consult legal counsel: Partnering with an experienced real estate attorney is essential for reviewing and negotiating the terms of subordination. An attorney can help ensure the agreement balances the tenant’s rights with the lender’s requirements.

Balancing Risks and Opportunities in Subordination

Subordination doesn’t just protect lenders—it can benefit tenants indirectly by enabling landlords to secure financing that keeps the property well-maintained and competitive. For example, a landlord might use refinancing to upgrade shared amenities or improve building infrastructure, which can enhance the tenant’s experience and attract more customers to retail spaces.

Tenants should approach subordination as an opportunity to strengthen their lease protections. By negotiating a comprehensive SNDA agreement with robust non-disturbance clauses and clear continuation terms, tenants can mitigate the risks associated with subordinating their lease while ensuring their interests remain intact.

Connecting Subordination and Attornment in Practice

Subordination and attornment are two essential components of an SNDA agreement, each serving distinct yet complementary purposes. Together, they create a legal safety net that balances the often-competing interests of lenders and tenants while ensuring the property remains viable and functional, even in challenging circumstances. Understanding how these provisions interact is crucial for tenants looking to protect their leasehold rights without hindering the landlord’s ability to secure financing.

How Subordination and Attornment Interact

  • Subordination: This clause gives lenders the assurance that their mortgage takes precedence over the tenant’s lease in the property’s legal hierarchy. In practice, subordination allows landlords to access financing or refinancing opportunities critical to maintaining or upgrading the property.
  • Attornment: While subordination prioritizes the lender’s interests, attornment safeguards tenants. It requires the tenant to acknowledge and honor their lease with any new property owner, such as a lender who takes control after foreclosure. Attornment protects tenant stability by ensuring lease continuity even when ownership shifts.

When these provisions are included in an SNDA agreement alongside a non-disturbance clause, they provide a balance of security and predictability for all parties involved. Subordination protects the lender’s financial interests, while attornment ensures tenants are not left in a precarious position should the property change hands.

Real-World Scenarios of Subordination and Attornment

  • Multi-Tenant Office Building: A tenant leasing space in a busy office building agrees to subordinate their lease to the landlord’s mortgage as part of the SNDA agreement. In exchange, the tenant secures a non-disturbance clause that ensures their lease remains intact even if the landlord defaults. When the lender takes control of the property after foreclosure, the tenant honors the lease terms with the lender, as outlined in the attornment clause. This arrangement allows the tenant to maintain uninterrupted business operations while preserving the property’s leasing income for the lender.
  • Retail Tenant in a Mixed-Use Development: A retail tenant negotiates a detailed SNDA agreement with specific subordination terms to support the landlord’s financing. By doing so, they help facilitate property upgrades that enhance the overall development. At the same time, the tenant ensures attornment provisions are in place, guaranteeing their lease continues seamlessly if a new owner takes over. This confidence allows the tenant to invest in the space, such as through renovations or marketing efforts, knowing their lease rights are protected.

Why Subordination and Attornment Are a Strategic Pair

The interplay between subordination and attornment within an SNDA agreement creates a win-win scenario for lenders and tenants. For lenders, these provisions safeguard their investments by ensuring a clear chain of priority and uninterrupted rental income. For tenants, the combination of subordination and attornment—particularly when paired with a non-disturbance clause—provides reassurance that their lease rights will remain intact, even in unpredictable circumstances like foreclosure or property sales.

Through understanding how subordination and attornment work together, commercial tenants can negotiate agreements that minimize their risks while fostering a mutually beneficial relationship with landlords and lenders.

Key Takeaways for Tenants Reviewing SNDA Agreements

Navigating an SNDA agreement can feel overwhelming, but it’s essential for securing your leasehold rights and ensuring business continuity. A well-crafted agreement not only protects your investment in the leased property but also positions you to thrive even during ownership changes or financial disruptions.

When reviewing an SNDA agreement, tenants should focus on subordination and attornment clauses, understanding their implications, and leveraging legal knowledge to negotiate terms that reflect their specific needs. Here’s how:

Your Checklist for SNDA Agreement Review

  1. Understand Subordination’s Impact: Subordination doesn’t inherently disadvantage tenants, but it does place the lease below the lender’s mortgage in priority. To mitigate this, ensure the SNDA agreement includes a strong non-disturbance clause. This clause can ensure that your lease rights remain intact, even in foreclosure scenarios, so you can continue your operations without disruption.
  2. Negotiate Attornment Terms: Attornment provisions secure continuity in lease obligations with any future property owners, such as a lender or new landlord. Review these clauses carefully to confirm they protect your rights while ensuring you maintain the same lease terms, such as rent, renewal options, and property access.
  3. Consult Legal Counsel Early: Real estate attorneys play a vital role in SNDA negotiations. They can identify vague language, highlight potential risks, and ensure your lease reflects a balanced agreement. A proactive legal review ensures that your business interests are well-represented, offering peace of mind for the long term.  SNDAs should not be negotiated without qualified counsel.

Insights to Strengthen Your Position

Beyond the basics, here are a few advanced considerations for tenants:

  • Request Specific Non-Disturbance Terms: While many agreements include non-disturbance clauses, the details matter. Specify that your lease will survive under the exact same terms post-foreclosure, ensuring there’s no ambiguity about your rights or obligations.
  • Address Unique Situations: If your business relies heavily on location (e.g., a retail store), consider adding provisions that prioritize maintaining property conditions or access rights under new ownership.
  • Seek Favorable Lease Continuation Terms: Tenants should aim for agreements that keep future rent and renewal terms consistent, even if property ownership changes. This foresight protects against rent hikes or unfavorable renegotiations with new landlords.

Why Gottlieb Law Makes a Difference

Reviewing an SNDA agreement isn’t just about ticking off a checklist—it’s about strategically protecting your business. At Gottlieb Law, we bring years of experience in commercial real estate law to the table, ensuring that your lease terms are tailored to your specific needs.

Whether you’re a tenant seeking stability or a landlord looking to maintain financing flexibility, we have extensive experience structuring agreements that align with your goals. We take the time to analyze the nuances of your lease, anticipate potential challenges, and negotiate terms that minimize risk while enhancing security. Our team understands the balance required in SNDA agreements, helping both landlords and tenants reach fair, forward-thinking solutions.

Protecting Your Lease with Subordination and Attornment

Subordination and attornment are more than just legal clauses—they’re critical tools that define how leases survive and adapt during financial upheaval or ownership changes. Together, these provisions ensure that lenders’ interests are safeguarded while tenants maintain lease security and business continuity. For commercial tenants, understanding the interplay between subordination, attornment, and non-disturbance is essential to negotiating agreements that protect their rights and foster long-term stability.

Why Gottlieb Law Is Your Strategic Advantage

Navigating the complexities of an SNDA agreement requires more than surface-level understanding—it demands insight, precision, and strategy. At Gottlieb Law, we focus on guiding tenants and landlords through the intricacies of commercial real estate agreements. Our team ensures your lease terms are structured to anticipate challenges, address your unique business needs, and protect your investments. Whether you’re negotiating subordination, securing non-disturbance protections, or clarifying attornment provisions, we’re here to make sure your interests are fully represented.

Protect your lease, your business, and your peace of mind. Call Gottlieb Law today at 602-899-8188 or use our Contact Us page here to schedule your initial consultation.

Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.

Mitigating Legal Risks in Arizona Property Investments and REITs - Gottlieb Law
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Mitigating Legal Risks in Arizona Property Investments and Real Estate Investment Trusts (REITs)
Mitigating Legal Risks in Arizona Property Investments and Real Estate Investment Trusts (REITs) 870 870 Gottlieb Law

Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.


Arizona’s real estate market is dynamic, drawing interest from both local and out-of-state investors—including those investing through Real Estate Investment Trusts (REITs). A REIT is a company that owns, operates, or finances income-producing real estate. Often publicly traded, REITs allow individuals to invest in portfolios of large-scale properties without having to buy or manage the properties themselves.

Through REITs, investors can gain exposure to the real estate market while avoiding the day-to-day responsibilities of property ownership. However, the legal landscape surrounding REITs involves a complex web of compliance obligations, regulatory oversight, and contractual requirements. Understanding the legal framework governing REITs is critical for investors, sponsors, and legal professionals alike.

REITs are primarily governed by federal law; however, there may be state specific laws, tax considerations, and compliance and zoning and other requirements that impact property acquisitions and management. 

Compliance Risks in Property Acquisition and Management

Real estate acquisitions carry common legal risks, including potential title defects, seller misrepresentations, and zoning inconsistencies. In Arizona, thorough due diligence—including title history review, zoning verification, and environmental research—is an important part of managing these risks.

Arizona’s environmental regulations may also impact acquisition strategy, particularly for properties with historical or ecological features. In some cases, state or local rules may trigger additional permitting or review processes, which can affect transaction timing or feasibility.

From a property management perspective, operating commercial properties in Arizona requires navigating the state’s landlord-tenant framework to ensure that lease agreements are clearly drafted. Provisions around rent terms, security deposits, maintenance responsibilities, and remedies for default can help reduce the likelihood of disputes and provide structure to landlord-tenant relationships.

Taxation Complexities in Arizona for REIT Investors

Arizona’s taxation on REITs requires careful attention, as tax missteps may lead to penalties or even impact the trust’s standing. The trust structure has a unique tax status, meaning that certain tax breaks or incentives may apply. But with state taxes varying, especially if the REIT holds properties across state lines, tax reporting and filing become complicated. Avoiding legal risks here means working with a tax advisor (tax lawyer and/or CPA) who understands both federal and Arizona’s tax system and REIT structures.

Compliance Strategies for Arizona property Investors

Compliance with licensing and zoning regulations is foundational to legal security. For Arizona investors, it’s essential to conduct a zoning analysis before any property acquisition. This ensures that the property’s intended use aligns with local regulations and avoids conflicts. Additionally, verifying that all licensing requirements are up-to-date prevents delays that could impact the trust’s earnings or reputation.

Effective Due Diligence in Property Acquisitions

Due diligence is one of the best strategies for protecting property investors from unnecessary legal exposure. This process includes reviewing property records for zoning compliance, environmental assessments, and potential restrictions that could interfere with the property’s intended use. Analyzing the financial history of a property and its current tenants can also provide insight into its risk profile, allowing investors to make informed investment decisions.

Ensuring Accurate Financial and Tax Reporting

Maintaining accurate financial and tax reporting isn’t just about fulfilling regulatory obligations; it’s also critical for protecting the REIT’s legal standing. Regular audits and clear records allow for straightforward financial management and help Arizona REIT investors stay compliant with state tax regulations. Errors in reporting can lead to investigations and penalties that impact the REIT’s reputation and financial health, so it’s wise to have systems in place that keep financial and tax reporting meticulous and up to date.

Avoiding Common Legal Issues in Arizona REIT Investments

Contracts are the backbone of any REIT investment, and poorly constructed agreements can create vulnerabilities. Key clauses, especially in lease agreements, need careful drafting. For example, defining maintenance responsibilities, security deposit terms, and dispute resolution procedures upfront protects the REIT from legal headaches down the road. The more comprehensive a contract, the less room there is for disputes, so paying close attention to every detail in lease agreements and management contracts is time well spent.

Tenant Management and Legal Disputes

Managing tenants within Arizona’s legal framework can be complex, particularly for REITs that own properties with commercial leases. Common issues include rent disputes, repair requests, and tenant defaults. While Arizona law provides strong protections for residential tenants, the rules governing commercial leases are more contract-driven and offer greater flexibility.

Understanding the distinction between residential and commercial tenant rights is critical for effective risk management. With clear tenant policies and well-drafted lease agreements, REITs can address disputes efficiently while remaining compliant with applicable state laws.

Environmental and Zoning Compliance Pitfalls

Arizona’s environmental regulations, especially for land with historical or natural significance, add another layer of legal consideration. REIT investors must ensure properties comply with current environmental and zoning requirements. In some cases, zoning rules may change, affecting property use or requiring compliance updates. Staying informed about local zoning and environmental regulations allows REITs to prevent legal disputes and unnecessary renovation costs.

Legal Assistance for Arizona Investors: How a Real Estate Lawyer Can Help

An experienced Arizona commercial real estate attorney can bring valuable insights to risk assessment and strategic planning. By reviewing prospective properties and identifying potential compliance issues, they help investors make informed decisions. Legal guidance in this area can be instrumental in avoiding issues and maximizing the investment’s return potential.

Assistance in Drafting and Reviewing Contracts

Contracts can be legally dense, with small details carrying significant implications. Legal counsel helps draft and review contracts, adding clauses that protect the investor’s interests while staying within Arizona’s regulations. From property purchase agreements to tenant leases, a lawyer’s role in contract preparation adds clarity and minimizes the risk of future disputes.

Litigation Support and Dispute Resolution

Despite careful planning, disputes can arise. Whether it’s a disagreement with a tenant, a contractual issue, or a regulatory question, having legal representation for dispute resolution is critical. Lawyers provide crucial support by representing the REIT’s interests and finding solutions that avoid court when possible.

Proactive Risk Management for Long-Term Success in Arizona Property Investments

By understanding Arizona’s legal landscape, investors can build strong foundations for their investments. With strategic compliance and careful planning, it’s possible to manage legal risks effectively, protect your property investments, and focus on growth.

Whether navigating zoning laws, securing robust tenant agreements, or assessing property risks, having sound legal support in Arizona real estate investment can make all the difference.

Safeguard Your Arizona REIT Investments

Looking to protect your property investments in Arizona? Schedule a consultation with Gottlieb Law to ensure your investments are fully compliant and prepared to face Arizona’s unique legal challenges. With local insight and a commitment to protecting your interests, Gottlieb Law offers peace of mind as you grow your Arizona real estate investments. Call our firm today at 602-899-8188 to get started.


Gottlieb Law, PLC provides this article for information purposes only and nothing herein creates an attorney-client relationship. You should not take any actions in reliance on any of the information contained herein without consulting with qualified legal counsel first and reading this article is not a proper substitute for seeking legal advice of your specific situation.  Laws change over time and you should seek counsel to discuss any specific legal questions.
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