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Other states use only mortgages. Why does Arizona also have deeds of trust? Answer: Since 1971 Arizona has had both mortgages and deeds of trust to secure loans on a home (or other real property). Most lenders in Arizona now require a deed of trust rather than a mortgage to secure a loan on a home for two reasons.
Arizona is a property tax lien state, which means that individual investors can buy tax liens on delinquent properties. In the state of Arizona, property taxes take first priority of any liens.
The Deed of Trust is the primary security document used in Arizona.
Simply put, a deed is a written instrument that is used to convey (or to give) ownership to someone else. You can think of it as a receipt that a seller (the giv-or) gives to the new owner. In this situation, the seller (giv-or) is the grantor (grant-or). Making the new owner in this situation the grantee (grant-ee).
Other states, such as our home state of Massachusetts, use mortgages rather than deeds of trust. Is there an Arizona law that only deeds of trust must be used? Answer: No. Arizona law provides for mortgages, and since 1971 Arizona law also provides for deeds of trust.