By JoAnn Falgout
In a pivotal decision, the Arizona Supreme Court has made it easier for homeowners to clear old debt claims from their property, even if the underlying debt remains unpaid. The ruling in Aroca v. Tang Investment Company establishes a new precedent, overturning more than a century of case law that previously kept liens in place regardless of enforceability.
The case centered on Jose and Kirstin Aroca of Pinal County, who filed a quiet title action on their home after the six-year statute of limitations to sue for an unpaid debt had passed. Although Tang Investment Company still held a deed of trust on the property, it had taken no action to collect the debt. The Arocas argued that the lien should no longer stand due to the expired enforcement window.
While the trial court initially sided with Tang, the Court of Appeals reversed that decision. The Arizona Supreme Court affirmed the appellate court’s ruling on March 31.
This decision marks a major shift in Arizona property law, affirming that statutory law overrides outdated judicial precedent. It offers long-needed clarity for property owners, investors, and developers navigating unresolved liens and creates a clear legal pathway to remove expired claims that might otherwise obstruct sales, refinancing, or development.
JoAnn Falgout is a seasoned attorney focusing on bankruptcy, commercial, and appellate law. She represents both debtors and creditors in Chapter 7, 11, and 13 matters, including bankruptcy appeals and court proceedings. She can be reached at joann.falgout@guidant.law.