What This Statute Says
This statute closes Arizona real property to a narrow class of foreign actors. It applies to both direct purchases and indirect acquisitions, and it specifically reaches transfers by devise, the legal term for property passing under a will.
Notwithstanding any other law and except as provided in subsection F of this section, a foreign adversary nation or a foreign adversary agent may not, directly or indirectly, purchase, own, acquire by grant or devise or otherwise obtain a substantial interest in real property in this state.
A.R.S. § 33-443(A)The attorney general enforces the section. Enforcement may not be based on race or national origin. If a violation is suspected, the attorney general may file in superior court and must report the matter to the FBI and the federal Committee on Foreign Investments in the United States.
When This Statute Comes Into Play
The estate-planning intersection is narrow but real. Two scenarios surface most often:
- An Arizona resident leaves real property under a will to a relative living abroad, and that relative's status raises questions about whether the devise can take effect.
- A trust funded with Arizona real estate names a beneficiary tied to a country on the federal adversary list.
If the court finds a violation, it must divest the prohibited interest and direct the property to be sold under standards in the statute. The proceeds, after costs, go to the original transferor or, in a devise case, into the chain of distribution.
What This Means for Arizona Families
For nearly every Arizona family, this statute will never come up. It applies to a very specific category of foreign actors, not to relatives living overseas in general. But anyone with international beneficiaries should know the rule exists.
If your last will and testament or trust leaves Arizona real estate to a beneficiary who lives in a country flagged on the federal foreign adversary list, the gift may not pass cleanly. A family conversation with the drafting attorney before signing avoids a probate-stage surprise. Our FAQ on handling out-of-jurisdiction property issues touches the broader question of layered jurisdictional rules. The simpler path is usually to leave non-real-estate assets to internationally located beneficiaries, or to direct the personal representative to sell the real property and distribute the proceeds in cash.