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Statute of Frauds

What is the Statute of Frauds?

The Statute of Frauds is a legal doctrine that requires certain types of contracts to be in writing to be legally enforceable. Its primary purpose is to prevent fraudulent claims and misunderstandings arising from oral agreements and to create a clear and verifiable record of important contractual obligations. In Arizona, the Statute of Frauds for real property transactions is governed by A.R.S. § 44-101.

Real Property Transactions Covered by the Statute of Frauds in Arizona

The Arizona Statute of Frauds mandates that contracts involving the sale, exchange, or lease of real property, or any interest in real property, must be in writing to be legally enforceable. This encompasses a wide range of real estate transactions, including but not limited to:

  1. Sales of Land and Homes: Any agreement to buy or sell a piece of land or a residential property, whether it’s a single-family home or a condominium, must be documented in writing to be legally binding.
  2. Lease Agreements: If you’re entering into a lease agreement for real property, such as leasing a commercial space or residential unit for a term exceeding one year, it must also be in writing to be enforceable.
  3. Real Estate Option Contracts: Option contracts, which give one party the right to buy or sell real property at a specified price within a specified timeframe, must be in writing to be legally valid.

Key Elements of a Valid Written Agreement

To comply with the Statute of Frauds in Arizona, a written agreement related to real property transactions must include certain key elements:

  1. Identification of the Parties: The names and addresses of all parties involved in the agreement must be clearly stated.
  2. Property Description: A detailed description of the real property being transacted, including its legal description, address, and any relevant parcel or tax identification numbers, should be included.
  3. Terms and Conditions: The terms of the agreement, including the purchase price, financing arrangements, and any contingencies or conditions, should be spelled out.
  4. Signatures: The written document should be signed by all parties involved. Signatures are a critical component of demonstrating consent and intention to be bound by the contract.

Implications of Non-Compliance

Failing to adhere to the Statute of Frauds in Arizona can have significant consequences. A contract that doesn’t meet the statutory requirements is generally unenforceable in a court of law. This means that parties may not be able to enforce their rights, collect damages, or compel performance if the contract is solely oral or inadequately documented.

Seek Legal Guidance

Navigating real property transactions in Arizona can be complex, and ensuring compliance with the Statute of Frauds is just one aspect of it. For individuals, investors, and real estate professionals, it’s advisable to seek legal counsel when dealing with real estate transactions. An experienced attorney can help draft, review, and ensure the enforceability of your contracts, providing you with peace of mind and helping you avoid costly disputes down the road.

In conclusion, the Statute of Frauds in Arizona is a fundamental legal doctrine that underscores the importance of written agreements in real property transactions. If you need assistance with your water well then contact the Dunaway Law Group at 480-702-1608 or message us HERE.

* These blog posts are not intended, nor shall they be deemed to render legal advice. Reading these blog post does not create an attorney-client relationship, nor shall it impose an obligation on the part of the law firm to respond to further inquiry. The Dunaway Law Group limits its practice to the states of Arizona and New York.

Subordination Agreement in Commercial Leases

Understanding Subordination Agreements in Commercial Leases

A subordination agreement modifies the priority of liens or claims on a property. In the context of commercial leases, a subordination agreement addresses the relationship between the tenant, landlord and lender.

Importance of Subordination Agreements Commercial Leases

1. Ensuring Lender’s Priority: Subordination agreements primarily protect the interests of lenders (banks) by allowing them to maintain their position as the primary lienholder. This protects the lender’s investment and ensures that they have first claim to the property in the event of default or foreclosure.

2. Subordination of Tenant’s Rights: The subordination agreement explicitly states that the tenant’s leasehold interest is subordinate to the lender’s mortgage or deed of trust. This provision establishes the priority of the lender’s claim over the tenant’s interest in the property.

3. Facilitating Financing: Subordination agreements can help tenants secure financing for improvements or expansions of the leased premises. By agreeing to subordinate their leasehold interest to the lender’s mortgage, tenants provide assurance to lenders that their claims will be secondary, thereby making it easier for tenants to obtain financing.

Key Provisions in Subordination Agreements

1. Non-Disturbance Clause: A non-disturbance clause is often included in subordination agreements to protect the tenant’s rights in case of foreclosure. It ensures that if the property is foreclosed upon, the tenant’s lease will remain valid and enforceable, and the tenant will not be evicted or disrupted by the foreclosure process.

2. Attornment: Attornment refers to the tenant’s acknowledgment and acceptance of a new landlord in the event of a transfer of ownership or foreclosure. Subordination agreements often require the tenant to recognize and attorn to the new landlord or owner, maintaining the lease obligations and rights under the original lease.

3. Notice Requirements: Subordination agreements typically outline the notice requirements for all parties involved. This ensures that the tenant is informed of any actions taken by the lender or landlord regarding the property, such as foreclosure proceedings or potential changes in ownership.

Conclusion:
Subordination agreements are vital instruments that govern the relationship between lenders, landlords, and tenants in Arizona commercial leases. By clarifying the priority of interests, these agreements protect the rights of all parties involved. For tenants, subordination agreements can facilitate financing and provide security in the event of foreclosure.

If you are looking to draft a commercial lease agreement and have questions about subordination agreements then contact the Dunaway Law Group at 480-702-1608 or message us HERE.

The Dunaway Law Group provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice and does not create a lawyer-client or attorney-prospective client relationship. Readers should not act upon this information without seeking advice from professional advisers. This Firm limits its practice to the states of Arizona and New York.

Uncrewed Aircraft Defined

Determining what is, and is not, “manned” aircraft is important because it determines whether an aircraft falls under the purview of the International Civil Aviation Organization (ICAO). If it does, then it is held to the same standard as traditional manned aircraft and must comply with all of the same requirements. 

Upon initial review, defining “uncrewed aircraft” seems to be intuitive and somewhat self-explanatory. However, with close examination and careful thought what is and is not “uncrewed” becomes less clear. For example, what if there is not a pilot in the aircraft but the aircraft is being flown by a person standing on the ground, using a remote control? Or must an “uncrewed” aircraft be one that is flown completely autonomously without any human input? 

Article 8 of the Convention on International Civil Aviation states, “No aircraft capable of being flown without a pilot shall be flown without a pilot over the territory of a contracting State without special authorization by that State and in accordance with the terms of such authorization. Each contracting State undertakes to insure that the flight of such aircraft without a pilot in regions open to civil aircraft shall be so controlled as to obviate danger to civil aircraft.”

Article 8 makes clear that the drafters intended “pilotless aircraft” to include aircraft that were remotely controlled, e.g., from the ground (via radio signals); thus, “pilotless aircraft” in the sense that Article 8 refers to an aircraft flown without a “pilot”.

Article 32 of Convention on International Civil Aviation states, provides, “the pilot of every aircraft and the other members of the operating crew of every aircraft engaged in international navigation shall be provided with certificates of competency and licenses issued or rendered valid by the state in which the aircraft is registered”.

When is a uav – “pilotless”?

Defining “pilotless” is of great importance because the pilots/company must get “special authorization by that State and in accordance with the terms of such authorization”. 

The term “without a pilot” was later clarified to mean that an “aircraft which is intended to be operated with no pilot on board shall be further classified as unmanned,” Furthermore, “unmanned aircraft shall include remotely-piloted aircraft.” 

An aircraft is not required to be fully autonomous in order to be uncrewed. An aircraft that is controlled by a person is still “uncrewed”, so long as the person controlling the aircraft is not located within the aircraft. For example, a quad-copter- drone that is controlled remotely by a person on the ground is still an unmanned aircraft. RPA as “an [uncrewed] aircraft which is piloted from a remote pilot station”. 

all aircraft are subject to article 8

All uncrewed aircraft, whether remotely piloted, fully autonomous or combinations thereof, are subject to the provisions of Article 8 and inter alia the ICAO.

Annex 7 makes it clear that remotely piloted aircraft (RPA), are simply one type of uncrewed aircraft, and all uncrewed pilotless aircraft, whether remotely piloted, fully autonomous, or combinations thereof, are subject to the provisions of Article 8 of the Chicago convention. Because RPAS are aircraft, ICAO is responsible for their international air travel. They are held to the ICAO standards.

Somewhat ironically, the Chicago Convention, which is considered to be the magna carta of civil aircraft, never actually defines the word “aircraft”. In 1967, in response to advancements in technology, ICAO re-defined “aircraft” as “any machine that can drive support in the atmosphere from the reactions of the are other than the reactions of the are against the Earth’s surface,” 

This change in the definition of “aircraft” came primarily as a response to the invention of “hovercraft”. A hovercraft is a machine that elevates itself off of the ground by pushing in downward to lift the vehicle off of the ground. Because a hovercraft creates lift by pushing air onto the ground it is not capable of “flying” more than a few inches in the air. 

The need for ICAO to redefine one of its most fundamental words, “aircraft” due to development of previously unforeseen technology—the hovercraft—is a perfect example of how quickly technology can change and how it can make prior norms outdated.

The Dunaway Law Group provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice and does not create a lawyer-client or attorney-prospective client relationship. Readers should not act upon this information without seeking advice from professional advisers. Additionally, this Firm limits its practice to the states of Arizona and New York.