Deeds with Exemption Codes

If you are not receiving cash or other consideration for the sale or exchange of real property, the conveyance is likely exempt from the requirement to file an Affidavit of Value. Deeds with exemption codes are very common.Please review the listings below to select the appropriate circumstance associated with the conveyance in order to identify the qualifying exemption. If none of the exemption codes apply, you can obtain and complete an Affidavit of Value at the Arizona Department of Revenue. For more information regarding the Affidavit of Value please refer to A.R.S. §11-1133.  A printer-friendly copy of Exemption Codes can be found here.

 

A.R.S. §11-1134 outlines the following information on exemptions:

A. The affidavit and fee required by this article do not apply to the following instruments:

1. A deed that represents the payment in full or forfeiture of a recorded contract for the sale of real property.

2. A lease or easement on real property, regardless of the length of the term.

3. A deed, patent or contract for the sale or transfer of real property in which an agency or representative of the United States, this state, a county, city or town of this state or any political subdivision of this state is the named grantor, and authorized seller, or purchaser.

4. A quitclaim deed to quiet title as described in section 12-1103, subsection B or otherwise executed for no monetary consideration.

5. A conveyance of real property that is executed pursuant to a court order.

6. A deed to an unpatented mining claim.

7. A deed of gift.

B. The affidavit and fee required by this article do not apply to a transfer of title:

1. Solely in order to provide or release security for a debt or obligation, including a trustee’s deed pursuant to power of sale under a deed of trust.

2. That confirms or corrects a deed that was previously recorded.

3. When the transfer of title has only nominal actual consideration for the transfer of residential property between:

(a) Husband and wife or ancestor of the husband and wife.

(b) Parent and child, including natural or adopted children and their descendants.

(c) Grandparent and grandchild.

(d) Natural or adopted siblings.

4. On a sale for delinquent taxes or assessments.

5. On partition.

6. Pursuant to a merger.

7. For no consideration or nominal consideration:

(a) By a subsidiary to its parent or from a parent to a subsidiary.

(b) Among commonly controlled entities.

(c) From a member to its limited liability company or from a limited liability company to a member.

(d) From a partner to its partnership.

(e) From a partnership to a partner.

(f) From a joint venturer to its joint venture.

(g) From a joint venture to a joint venturer.

(h) From a trust beneficiary to its trustee.

(i) From a trustee to its trust beneficiary.

(j) From any of the entities in subdivisions (a) through (i) of this paragraph to a single purpose entity in order to obtain financing.

8. From a person to a trustee or from a trustee to a trust beneficiary with only nominal actual consideration for the transfer.

9. To and from an intermediary for the purpose of creating a joint tenancy estate or some other form of ownership.

10. From a husband and wife or one of them to both husband and wife to create an estate in community property with right of survivorship.

11. From two or more persons to themselves to create an estate in joint tenancy with right of survivorship.

12. Pursuant to a beneficiary deed with only nominal actual consideration for the transfer.

13. From an owner to itself or a related entity for no or nominal consideration solely for the purpose of consolidating or splitting parcels.

14. Due to a legal name change.

C. Any instrument that describes a transaction that is exempt under this section shall note the exemption on the face of the instrument at the time of recording, indicating the specific exemption that is claimed.

For more information and this form, visit our library.

 

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