What to expect in the Arizona Seller’s Property Disclosure Statement

In Arizona, the standard residential real estate contract calls for the home seller to deliver a Seller Disclosure document to the buyer within 5 days of an accepted offer.

From the Arizona Seller’s Property Disclosure Statement (SPDS):

Sellers are obligated by law to disclose all known material (important) facts
about the property to the buyer. Arizona law requires that you disclose material facts about the property whether or not you are asked by the buyer or a real estate agent, or when asked to complete a disclosure form.

Disclosure is not an option. It’s a requirement.

The SPDS is divided into six general sections:

    1. Ownership and Property: This section asks for general information
      about the property, such as location, ownership and occupancy.
    2. Building and Safety Information: This section asks for information regarding the physical aspects of the property. You should disclose any past or present problems with the property and any work or improvements made to the property. You are also asked specifically to disclose any knowledge of past or current presence of termites or other wood destroying organisms on the property, and whether scorpions or other possible "pests" have ever been present on the property.
    3. Utilities: You are asked whether the property currently receives the  listed utilities, and if so, to identify the provider.
    4. Environmental Information: A variety of environmental  information is requested. In addition to questions regarding environmental hazards, you are asked to disclose any issues relating to soil settlement/expansion, drainage/grade, or erosion; noise from the surrounding area including airport and traffic noise; and any odors or other nuisances.
    5. Sewer/Waste Water Treatment: There are many questions dealing with the topic of sewer or wastewater treatment as a result of claims involving alleged misrepresentations that the property was connected to a sewer, when in fact it was not.
    6. Other Conditions and Factors – Additional Explanations: These blank lines provide space for you to disclose any other important information concerning the property that might affect the buyer’s decision-making process, the value of the property, or its use, and to make any other necessary explanations.

Click here for a sample copy of the Arizona Seller’s Property Disclosure Statement (SPDS), often referred to “spuds”.

One additional note that I like to make about the Seller Disclosure is that it’s not all “bad news”.  If you’ve updated or enhanced anything about your property, disclose that too!

Sellers want to know. Sellers need to know. You need to tell them.

Additional information related to seller disclosures:

5 Comments

  1. I work in the storm damage business for a Arizona general contractor. Do you feel it would be
    necessary to inform the buyer that the house was in the area of the Oct. 5, 2010 storm and that
    a claim was not turned into the home owners insurance company?

    Howard HUGHES
    602-826-1678

  2. Howard, the seller is obligated to disclose all pertinant information about the house. The buyer should always get a home inspection and then a follow-on roof inspections if any issues are noted on the more general report.

  3. Is the seller REQUIRED to provide the buyer with the names and numbers of contractors that worked on the seller’s property?

    Thanks…

  4. Tom, if the house was put under contract in Arizona using the current Residential Resale Purchase Contract, the Seller is required to deliver any paid receipts evidencing the corrections and repairs to the Buyer prior to the Close of Escrow

  5. On a lease option to buy contract, is the seller required to disclose a “second” they took out on the property prior to signing the lease option to buy contract? In my case, the seller did not disclose they took out a second and he told me he was not required to tell me. The Broker advised me the seller was required and did not advise her, either.

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