Arizona Attorney General Brings Suit Against Invstors
Several real estate investors, title companies and attorney’s were sued by the Arizona Attorney General’s Office.
The case was not about Subject To, but rather it was about how people were treated.
It was more about investors being Misleading. And here at MAREI, we think that how this case shakes out in the end might affect everything we do when attempting to buy houses directly from sellers who have a motivating factor that we all target in our marketing efforts.
Update 3.21 - Courtney Fricke's Podcast
Real Estate Investor Courtney Fricke interviewed Jeff Watson and they discussed the case and what it means for real estate Investors.
Some Key Points:
- Jeff Watson emphasizes that even if you’re not in Arizona, the ripple effects could impact investors nationwide—especially in how title companies handle creative financing strategies.
- The AG names title companies as defendants, accusing them of turning a blind eye to questionable contracts. This could set a precedent for how title and escrow companies approach Subject-To transactions in the future.
- One of the most controversial parts of the case is the AG’s argument that title companies should have recognized the contracts as unfair or potentially predatory.
- How you do real estate matters. Ethical, compliant, and transparent business practices aren’t just “nice to have”—they’re essential.
- Expect this case to drag out over two years. If the AG wins, it could lead to tighter regulations or restrictions—especially around Subject-To deals and how title companies participate in them.
Watch Jeff Watson's Video
Rules to Follow When Dealing with People
- When you are dealing with people, especially those in foreclosure, Don’t Be Misleading!
- Do not try to trick them or trap them into contracts.
- Do not pressure them into contracts.
- Do not use contracts that are lopsided and unfair.
- Make sure you have real earnest money held in escrow.
- Make sure the only way to back out of the contract is a legitimate real reason, not a “weasel clause”
- Make sure you treat people fairly an honorably.
Be sure to follow the State Foreclosure rescue statues. If there are none, treat them how you would want someone else to treat your mother.
Be sure to offer to pay them for their equity, even if it’s an offer over time.
You cannot be aggressively pursuing people in foreclosure.
Saying it again . . . have real earnest money and meaningful, fair contractural language.
Go back and download the 81-page document above, read it. You will see exactly how not to door knock, talk to people, or aggressively run a house-buying or flipping business.
More details are coming.
Not everything in the case are not accurate or by the law, so Jeff will be sharing more info as the case progresses.
Jeff Watson
Real Estate and Self Directed IRA Attorney and Advocate. And promoter of legal, fair, and honest real estate practices. Sign up for his email newsletter at WatsonInvested.com
