Arizona Revised Statutes

Ariz. Rev. Stat. § 33-742 (2026)

Forfeiture of interest of purchaser in default under contract

✓ current as of May 2026

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A. If a purchaser is in default by failing to pay monies due under the contract, a seller may, after expiration of the applicable period stated in subsection D of this section and after serving the notice of election to forfeit stated in section 33-743, complete the forfeiture of the purchaser's interest in the property in the manner provided by section 33-744 or 33-745. If the contract provides that the seller may elect to accelerate the principal balance due under the contract to the seller on the purchaser's failure to pay the monies due, the seller may accelerate the principal balance due to the seller at any time after the purchaser has failed to pay the monies due under the contract. The acceleration may occur before or after the expiration of the applicable period stated in subsection D of this section and without serving the notice of election to forfeit stated in section 33-743. If the seller elects to accelerate the principal balance due to the seller, the seller may only foreclose the contract as a mortgage in the manner provided by section 33-748. If a purchaser is in default under the contract for reasons other than failing to pay monies due under the contract, the seller may only foreclose the contract as a mortgage in the manner provided by section 33-748.

B. The interest of a purchaser in any personal property included in a contract is subject to forfeiture or foreclosure in the same manner as the real property, except that forfeiture or foreclosure does not affect or impair the rights of a holder of a security interest whose interest in the personal property is not subordinate to that of the seller.

C. If a contract provides that time is of the essence, a waiver of that provision occurs only if the seller has accepted monies due under the contract in an amount which is less than the total monies due under the contract at the time of the acceptance. Receipt of any monies due under the contract by an account servicing agency does not constitute acceptance by the seller. A seller's delay in exercising any remedy granted either by the contract or by law does not constitute a waiver of a time is of the essence provision. If the time of the essence provision has been waived, the seller may reinstate the provision by serving a written notice on the purchaser and the account servicing agent, if one has been appointed, requiring strict performance of the purchaser's obligations to pay monies due under the contract. The notice shall be served, either by delivery in person or deposit in the United States mail, first class, postage prepaid, at least twenty days prior to the date on which the seller will require the purchaser to pay the monies due under the contract. A copy of the notice need not be recorded in the county in which the real property is located or served on any person other than the purchaser and the account servicing agent, if one has been appointed.

D. Forfeiture of the interest of a purchaser in the property for failure to pay monies due under the contract may be enforced only after expiration of the following periods after the date such monies were due:

1. If there has been paid less than twenty per cent of the purchase price, thirty days.

2. If there has been paid twenty per cent, or more, but less than thirty per cent of the purchase price, sixty days.

3. If there has been paid thirty per cent, or more, but less than fifty per cent of the purchase price, one hundred and twenty days.

4. If there has been paid fifty per cent, or more, of the purchase price, nine months.

E. For the purpose of computing the percentage of the purchase price paid under subsection D of this section, the total of only the following constitutes payments on the purchase price:

1. Down payments paid to the seller.

2. Principal payments paid to the seller on the contract.

3. Principal payments paid to other persons who hold liens or encumbrances on the property, the principal portion of which constitutes a portion of the purchase price, as stated under the contract.

Notes of Decisions

Cited in 8 cases (2 in the last 5 years), 1980–2024 · leading case: MacIborski v. Chase Serv. Corp., 779 P.2d 1296 (Ariz. Ct. App. 1989).

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MacIborski v. Chase Serv. Corp., 779 P.2d 1296 (Ariz. Ct. App. 1989). · cites it 2× “If a purchaser defaults by failing to pay monies due under the contract, and the requisite time period provided in A.R.S. § 33-742(D) has passed, the seller may elect to forfeit the purchaser’s interest.”

Hoyle v. Dickinson, 746 P.2d 18 (Ariz. Ct. App. 1987). · cites it 2× “After the joint venture was unable to make the monthly payments of $2,500 plus interest to the Hoyles under the trust, the Hoyles issued a notice of forfeiture in October 1982 in accordance with A.R.S. § 33-742, as required by the trust provisions.”

Freedman v. Cont'l Serv. Corp., 622 P.2d 487 (Ariz. Ct. App. 1980). · cites it 2× “Provided, however, that no forfeiture hereunder shall be enforced until and after the expiration, after such default of the periods provided in Section 33-741 and Section 33-742 Arizona Revised Statutes 1956.”

In Re Carroll, 7 B.R. 907 (Bankr. D. Ariz. 1981). “, Ariz.Rev.Stat. § 33-742, which provides for cash payments to cure prior default and installment payments pursuant to the reinstated contract.”

Velazquez v. Fmz (Ariz. Ct. App. 2023). · cites it 7× “” Thus, “after expiration of the applicable period” and “after serving the notice of election to forfeit,” FMZ could pursue forfeiture of Uriarte’s interest under A.R.S. § 33-742. See A.R.S. § 33-743 (notice of election to forfeit).”

Bowcut v. Jaarsma, 653 P.2d 1 (Ariz. 1982). “Present § 33-742(B) provides: “B. The interest of a purchaser in any personal property included in a contract is subject to forfeiture or foreclosure in the same manner as the real property, except that forfeiture or foreclosure does not affect or impair the rights of a holder…”

Colosi v. Nacim (Ariz. Ct. App. 2019). · cites it 2× “] section 33-361 [breach of tenant's obligation to pay rent] is not whether the parties have created a landlord and tenant relationship but whether an already existing lease should be terminated and possession awarded to the 2 A forfeiture under A.R.S. § 33-742(A) (2019) is a…”

Ely v. Ely (Ariz. Ct. App. 2024). · cites it 2× “A.R.S. §§ 33-742(A), (D), -745(A). At that point, “the property reverts to the seller clear of all interests, liens and encumbrances” except those senior to the seller’s interest.”

— Ariz. Rev. Stat. § 33-742(A) — 2 cases

Colosi v. Nacim (Ariz. Ct. App. 2019). “] section 33-361 [breach of tenant's obligation to pay rent] is not whether the parties have created a landlord and tenant relationship but whether an already existing lease should be terminated and possession awarded to the 2 A forfeiture under A.R.S. § 33-742(A) (2019) is a…”

Ely v. Ely (Ariz. Ct. App. 2024). “A.R.S. §§ 33-742(A), (D), -745(A). At that point, “the property reverts to the seller clear of all interests, liens and encumbrances” except those senior to the seller’s interest.”

— Ariz. Rev. Stat. § 33-742(B) — 1 case

— Ariz. Rev. Stat. § 33-742(D) — 1 case

MacIborski v. Chase Serv. Corp., 779 P.2d 1296 (Ariz. Ct. App. 1989). “If a purchaser defaults by failing to pay monies due under the contract, and the requisite time period provided in A.R.S. § 33-742(D) has passed, the seller may elect to forfeit the purchaser’s interest.”

— Ariz. Rev. Stat. § 33-742(D)(1) — 1 case

Velazquez v. Fmz (Ariz. Ct. App. 2023). “” Thus, “after expiration of the applicable period” and “after serving the notice of election to forfeit,” FMZ could pursue forfeiture of Uriarte’s interest under A.R.S. § 33-742. See A.R.S. § 33-743 (notice of election to forfeit).”

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