Property Ownership, Land Use, Valuation, and Property Management
Ownership and title
Title may be held in severalty, tenancy in common, joint tenancy, community property, or community property with right of survivorship. Arizona is a community property state, and separate property can be converted by agreement. Deeds transfer title - warranty, bargain and sale, quitclaim, disclaimer - and recording matters: under A.R.S. §33-412 a later purchaser for value without notice who records first is protected, making Arizona a race-notice state. Title insurance covers defects that recording and searching cannot cure, and a homestead exemption (currently $250,000) protects equity in a dwelling.
Land use
Zoning controls use. A variance relieves a hardship peculiar to the land, a special use permit authorizes a listed conditional use, and a nonconforming use may continue even though the zoning changed. Plats, CC&Rs, development fees, and groundwater rules such as assured water supply constrain development.
Valuation
Three approaches: sales comparison, cost, and income. Income analysis uses the gross rent multiplier (price divided by gross rent) and the capitalization rate (net operating income divided by value). Depreciation is physical, functional, or external. Highest and best use filters every approach.
Management
Arizona's Residential Landlord and Tenant Act governs rentals. Security deposits must be accounted for and returned within 14 business days after move-out with an itemized statement, and any nonrefundable fee must be disclosed. Brokers holding client funds use trust accounts.
Traps
Inverting cap rate and GRM. Assuming a variance changes the zoning map. Calling a security deposit "nonrefundable." Ignoring that joint tenancy requires the four unities.
Worked example: net operating income of $24,000 on a $300,000 property gives a cap rate of 24,000 ÷ 300,000 = 8%.