What Is A Seller’s Property Disclosure Statement (SPDS)?

In the world of real estate, we refer to this document as the “SPDS” (spuds). The Seller’s Property Disclosure Statement is often provided by the sellers in a real estate transaction.

This document asks the seller to provide information about the property and its known condition. The SPDS is a seven page document that emphasizes the Arizona law, that requires the seller to disclose material (important) facts pertaining to the property, regardless of whether they were asked by the buyer or their agent. This obligation stands even if both parties agree to waive the SPDS.

Buyers in a real estate transaction should be aware that there may be facts about the property that are not known by the sellers. Buyers are encouraged to take an active role in obtaining information about the property.

Brokers are not responsible for the verification of the items addressed in the SPDS, so the buyers should review the document with caution and verify any areas of concern.

Sellers Property Disclosure Statement
What Are Sellers Not Obligated To Disclose?
The following are situations where the seller is not obligated to disclose that the property is or has been:
  1. A site of a natural death, suicide, homicide, or any other felony crime.
  2. Owned or occupied by a person exposed or diagnosed with HIV, or any other disease not known to be transmitted through common occupancy of real estate.
  3. Located in an area of a sex offender.

​Although the sellers are not obligated to disclose these items, they cannot willfully misrepresent the known facts. Sellers are encouraged to answer truthfully if asked, or respond that they are not legally required to answer the question.
What Types Of Questions Are Asked On The SPDS?

The Seller’s Property Disclosure Statement is a questionnaire provided by the Arizona Association of Realtors and is organized by line numbers much like many other real estate documents. Lines 1 – 279 ask the sellers to provide information like Property and Ownership (legal owners, address, title issues, etc…), Building and Safety (roof, wood infestation, plumbing, pools, electrical), Utilities (electricity, gas, cable, internet, phone, garbage, fire services, water),Environmental Information (soil, noise, drug labs, airports, asbestos, flood, etc…),  Sewer/Wastewater Treatment(sewer connection, septic).

​Once completed by the sellers and reviewed by the buyers, the SPDS are signed by both parties (lines 280 – 295) and become part of the Residential Resale Real Estate Purchase Contract.

​When Are The Sellers Required To Provide The SPDS?

When using the AAR (Arizona Association of Realtors) Purchase Contract, the seller is required to deliver the SPDS to the buyer within five days of contract acceptance. By not doing so, the sellers may be in breach of contract allowing the buyers to cancel and receive the earnest money deposit.

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