Anti-Deficiency Statute

Here at the Brei Law Firm, we believe it is important for our clients to be aware of changes in real property law.

The Arizona Supreme Court recently held that Arizona’s anti-deficiency statute (A.R.S. § 33-814(G)) does not a bar a deficiency judgment against an owner of vacant property. This means that under certain cases, if a piece of vacant property is foreclosed upon, the property owner may still face personal liability in a lawsuit commonly known as a deficiency action. The decision, BMO v. Wildwood Creek Ranch, overturned a Court of Appeals decision that had held that property owners could receive anti-deficiency protection for foreclosed-upon vacant land when the property owner had intended to eventually occupy a partially constructed home on the property. Now, after BMO, a property must have the home completed to get the protection of the statute and to avoid personal liability.

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