Key Takeaways
- The SPDS is a 10-page document disclosing known property conditions and issues
- Sellers must provide the SPDS within specified timeframe (usually 3 days of acceptance)
- The SPDS covers structural, mechanical, environmental, and legal issues
- Sellers disclose what they KNOW—they are not required to investigate
- About 77% of real estate lawsuits involve disclosure issues, making accuracy critical
Arizona Seller Property Disclosure Statement (SPDS)
The Seller's Property Disclosure Statement (SPDS) is Arizona's primary disclosure document for residential transactions.
Overview
The SPDS is:
- A 10-page document developed by AAR
- Required in most residential transactions
- Due within specified days of contract acceptance
- A disclosure of known conditions
Important: Sellers disclose what they know. The SPDS is not a warranty and sellers are not required to investigate.
When SPDS is Required
The SPDS is typically required for:
- Residential resale transactions
- Properties with 1-4 dwelling units
- Sales where buyer is not receiving a public report
Exemptions
SPDS may not be required for:
- New construction with public report
- Court-ordered sales (foreclosure, probate)
- Transfers between family members (in some cases)
Delivery Timeline
| Timeframe | Requirement |
|---|---|
| Delivery deadline | Per contract (typically 3 days) |
| Buyer review period | As specified in contract |
| Updates required | If conditions change |
SPDS Categories
The SPDS covers multiple property aspects:
1. Property History
| Topic | Examples |
|---|---|
| Prior damage | Floods, fires, structural damage |
| Repairs | Major work done to property |
| Insurance claims | Claims filed in past 5 years |
| Previous uses | Commercial, agricultural |
2. Structural Components
| System | Disclosures |
|---|---|
| Roof | Age, leaks, repairs |
| Foundation | Cracks, settling, repairs |
| Walls | Damage, repairs |
| Windows/Doors | Condition, replacements |
3. Systems and Appliances
| Category | Items |
|---|---|
| HVAC | Age, condition, maintenance |
| Plumbing | Issues, repairs, type |
| Electrical | Panel, wiring, issues |
| Appliances | What's included, condition |
4. Environmental Issues
| Issue | Required Disclosure |
|---|---|
| Lead-based paint | Required for pre-1978 homes |
| Asbestos | Known presence |
| Radon | If testing done |
| Mold | Known presence |
| Soil contamination | If known |
5. Legal and Neighborhood
| Topic | Examples |
|---|---|
| HOA | Fees, rules, assessments |
| Zoning | Current zoning, violations |
| Easements | Known easements |
| Boundary issues | Disputes, encroachments |
| Noise | Airport, traffic, commercial |
What Sellers Must Disclose
Sellers must disclose:
- Known defects
- Material facts about the property
- Information that could affect value or desirability
- Issues discovered during ownership
What Sellers Don't Have to Disclose
Arizona law does NOT require disclosure of:
- Deaths on the property
- HIV/AIDS status of prior occupants
- Sex offender proximity
- Paranormal activity
- Personal reasons for selling
5-Year Insurance Claims History
The Arizona Residential Resale Purchase Contract requires:
| Requirement | Detail |
|---|---|
| Document | 5-year insurance claims history |
| Deadline | Within 5 days of acceptance |
| Coverage | For length of ownership if less than 5 years |
This helps buyers understand property history and potential issues.
SPDS Updates
Sellers must update the SPDS if:
- New defects are discovered
- Previous answers change
- Conditions materially change
Updates should be provided promptly in writing.
Legal Consequences of Non-Disclosure
Seller Liability
Sellers may face:
- Fraud claims
- Rescission of contract
- Damages for repair costs
- Legal fees and costs
Statistic to Remember
About 77% of real estate lawsuits are related to disclosure issues. Accurate SPDS completion is critical.
Best Practices
- Complete honestly - Answer all questions truthfully
- When in doubt, disclose - It's better to over-disclose
- Update promptly - Notify of any changes
- Keep copies - Retain signed SPDS for records
- Don't guess - If unknown, say so
What percentage of real estate lawsuits are related to disclosure issues?
Which of the following must a seller disclose on the Arizona SPDS?