What is the Arizona law on the fees for excess sale proceeds?
Warning: like so many laws this area of law is constantly changing. It is your responsibility to confirm the latest version of the law.
Section 33-812(o) of the Arizona Revised Statutes states that a claimant may enter into an agreement with a third party to pay for or assist in the recovery of excess proceeds on deposit with the county treasurer. The agreement must be in writing, signed by the claimant, and acknowledged by a notary public or other person authorized to accept an acknowledgment in accordance with section 33-511. Any agreement made before the expiration of the thirty-day period following the trustee’s sale, but not including the date of the sale, is null and invalid.
Any charge or payment stipulated in a contract must be reasonable.
If the price or payment agreed upon exceeds two thousand five hundred dollars, excluding attorney fees and the costs of bringing the claim and giving the statutorily required notices, the charge or payment is assumed to be unreasonable, and the commitment to pay the fee or payment is unenforceable. Any individual seeking a fee or payment in excess of $2500 may apply to the court for further compensation, but it is the person’s responsibility to show that the additional compensation is appropriate in the circumstances. This subsection does not preclude a claimant from questioning the reasonableness of any fee or payment stipulated in a contract for the collection of excess proceeds or assistance in the recovery of excess proceeds.
NOTE: Be careful if you are contacted anyone involved in this type of business (including lawyers – or those who say they are a lawyer). They may be legitimate, but do your homework first. Never sign anything without first understanding what you are signing and the full effect of what you are signing. Never sign documents the same day that you are offered the “deal”. Take a few days to mull over the value of the services offered. Keep copies of every document that you sign, including business cards, brochures and flyers. There may be a much better deal out there, if you only look.
Many law firms, including this one, assist people in applying for excess sale proceeds. Our firm’s normal fee for obtaining these proceeds (including most court appearances and answering objections) depends on the complexity of the case. We do not charge our clients referral fees, nor do we pay any “finder’s fees” or “third party provider fees” to any company. No one in this firm holds interest in another other company that “assists” people in obtaining the excess proceeds. We would never advise a client, nor request a client to sign an irrevocable assignment of any proceeds. This firm is in the business to practice law, not to invest in real property.
-Diane L. Drain
Additional articles on Excess Sale Proceeds.
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*
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