Considering a mortgage for your dream luxury home? Think again.

No two real estate transactions are exactly the same, especially when comparing Arizona to many other states.

For example, did you know that Arizona home loans technically are not mortgages; they’re deeds of trust? Whoa! This comes as a big surprise to many home buyers. Truth be told, Arizona’s luxury real estate market has many wild west real-estate laws like this one.

Both a Deed of Trust and a Note are used to finance real estate transactions involving home loans. Recorded as a matter of public record, the Deed of Trust is an agreement – a security instrument – that initiates a lien against the property. The note serves as an “IOU” to pay back the note. The borrower conveys the right of ownership of luxury real estate property to a trustee (often a title company) as security for the sum advanced by a lender. The transfer of legal title to the trustee will become void upon the timely payment of the debt. If the borrower defaults on the payment of the debt, the deed empowers the trustee to sell the luxury home and pay the lender what’s due to satisfy the debt. Recorded in public records, this document should be used by Arizona borrowers or lenders involved in financing real estate transactions.

Because deeds of trust introduce third-party trustees into the borrowing equation, they can add complication to the process – and create vulnerabilities – compared to simpler two-party mortgage agreements.

So how do you protect yourself? An exclusive buyer’s agent not only understands the Deeds of Trust and Note in Arizona but also offers unparalleled levels of protection for the luxury home buyer and ensures that financing optimizes the value of your luxury real estate investment.