The following is from Arizona real estate attorney Chris Combs.
Under ARS §33-405 a beneficiary deed can be executed and recorded by the owner of real property to a family member or any other person. The following are answers to some basic questions.
1. If an income-producing property is transferred by beneficiary deed, is the owner of the income-producing property still entitled to the rent from the tenant?
Answer:There is no transfer of ownership by a beneficiary deed until the death of the owner of the rental property. Therefore, the owner of the rental property remains entitled to the rent from the tenant.
2. Can a lender transfer a real property mortgage loan on real property by a beneficiary deed?
Answer: Yes. Any debts secured by a lien on real property can be transferred by beneficiary deed. ARS §33-405(A).
3. What is the cost of a beneficiary deed?
Answer: The cost is only the minimal cost of recording the beneficiary deed in the county in which the real property is located.
Note: Combs Law Group offers a $1,500 flat fee, including recording costs, for recording beneficiary deeds on up to three parcels of real property.