Bulletin: AZ000003

Dear Associates:

This Bulletin supersedes and replaces Arizona Underwriting Bulletin No. AZ000002.

House Bill No. 2493 which was recently passed, becomes effective July 13, 1995. Part of that Bill is a revision of A.R.S. §33-431 which establishes community property with right of survivorship as a permitted form of holding title to real property in Arizona. The Bill is retroactive as to any deed recorded from and after December 31, 1994 declaring that a husband and wife take property as community property with right of survivorship.

The revised statute permits the transfer of property held by husband and wife or either of them to be made directly to the husband and wife as community property with right of survivorship.

The statute also provides that right of survivorship may be extinguished by an Affidavit entitled "Affidavit Terminating Right of Survivorship". I am enclosing a copy of Pages 17, 18 and 19 of House Bill No. 2493 setting forth the changes to A.R.S. §33-431 .

Where title is to be taken by husband and wife as community property with right of survivorship, the conveyance should contain an acceptance by the husband and wife as community property with right of survivorship. This may be done on the deed itself, or on an attachment similar to what many of you currently use for joint tenancy deeds.