Buying On A Land Contract
A.R.S. 33-742 — the wait before forfeiture grows with what has been paid
In Arizona, a contract for deed, an agreement for sale, or a similar contract through which a seller has conveyed equitable title in property, and keeps the rest of its title until the purchaser pays in full, is a contract under the forfeiture article.
Forfeiture of the purchaser's interest for failure to pay may be enforced only after these periods have run from the date the money was due.
- If there has been paid less than twenty per cent of the purchase price, thirty days.
- Twenty per cent or more, but less than thirty per cent, sixty days.
- Thirty per cent or more, but less than fifty per cent, one hundred and twenty days.
- Fifty per cent or more of the purchase price, nine months.
What counts as paid. Only down payments, principal payments to the seller, and principal payments to others holding liens that are part of the purchase price count toward the percentage.
A recorded notice, served twenty days ahead. After the period runs, the seller and any account servicing agent record a notice of election to forfeit and serve a copy, in person or by first class mail, at least twenty days before the forfeiture takes effect. The notice states the monies required to reinstate the contract.
Other defaults go to foreclosure. A seller who accelerates the balance, or whose purchaser is in default for reasons other than failing to pay monies due, may only foreclose the contract as a mortgage.
| The assumption | What the law actually does |
|---|---|
| The assumptionA missed payment means the house is gone next month | What the law actually doesThe wait runs from thirty days up to nine months, by what has been paid |
| The assumptionEvery default ends in forfeiture | What the law actually doesDefaults other than nonpayment, and accelerated balances, are foreclosed as a mortgage |
Mortgages, leases with an option to buy, and the details of a forfeiture or foreclosure case are not all on this page. Whether a particular agreement is a land contract under the statute, and what it allows, is a question for a licensed Arizona attorney.
Sources for this section (3)
- A.R.S. 33-742 — Forfeiture of interest of purchaser in default under contract
- A.R.S. 33-741 — Definitions: contracts for conveyance of real property
- A.R.S. 33-743 — Notice of election to forfeit and reinstatement of purchaser's interest
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed Arizona attorney.