44-327. Agreement to locate property

382 words·~2 min read·/az/title-44/44-327

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. The following are void and unenforceable:

1. An agreement entered into by an owner with another person if the primary purpose of that agreement is to locate, deliver, recover or assist in the recovery of property that is presumed abandoned, if the agreement was entered into during the period commencing on the date the property was presumed abandoned and extending to a time that is twenty-four months after the date that the property is paid or delivered to the department. This paragraph does not apply to an owner's agreement with an attorney to file a claim relating to identified property or to contest the department's denial of a claim.

2. A provision in an agreement that requires an owner to pay compensation that includes a portion of mineral proceeds that are not presumed abandoned or the underlying minerals, if the primary purpose of the agreement is to locate, deliver, recover or assist in the recovery of mineral proceeds that are presumed abandoned.

B. If an owner enters into an agreement that is not void pursuant to this section and the primary purpose of that agreement is to locate, deliver, recover or assist in the recovery of property reported to the department, the agreement is:

1. Enforceable if the agreement is in writing, clearly states the nature of the property and the services to be performed, is signed by the apparent owner and states the value of the property before and after the fee or other compensation has been deducted. The fee or payment agreed on shall not be more than thirty per cent of the value of the recoverable property reported to the department.

2. Unenforceable except by the owner if the agreement provides for compensation that is more than thirty per cent of the value of the recoverable property reported to the department.

C. An owner who has agreed to pay compensation that is more than thirty per cent of the value of the recoverable property reported to the department, or the department on behalf of the owner, may maintain an action to reduce the compensation. The court may award reasonable attorney fees to an owner who prevails in the action. This section does not prohibit an owner from asserting that an agreement is invalid on grounds other than compensation.