In a recent decision, the Arizona Supreme Court gave homeowners a clearer path to removing old debt claims from their property, even if they haven’t paid off the underlying debt. The decision sets a new precedent for property rights in the state.
Under Arizona law, lenders have six years to sue for an unpaid debt. Jose and Kirstin Aroca wanted to clear the title on their Pinal County property after the legal window to sue for their unpaid debt had closed.
The couple went to court in 2022, arguing that since Tang Investment Company could no longer sue them for the debt, it shouldn’t be able to keep a lien on their property either.
A trial court ruled for Tang, but the state Court of Appeals reversed the decision, which led to Arizona’s Supreme Court taking the case to settle it.
Tang argued that under state law, the lien should remain until 2057. But in a decision filed Monday, the Arizona Supreme Court pointed to another law that lets property owners remove the lien from their title if the enforcement deadline has passed.
The decision overturns a more than century-old case that required homeowners to pay off their debt before clearing a lien.
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