BUYER EMPOWERMENT UNIVERSITY FAQ'S

What is the Seller Property Disclosure Statement (SPDS)?

The home inspection period allows the buyer to investigate all pertinent information about a property before purchasing it. Along with a home inspection, the Arizona Association of Realtor's Seller Property Disclosure Statement (SPDS) can provide some insight into the condition of the property. The SPDS can give you a lot of extra information to consider during the inspection period.

In Arizona, the standard Residential Purchase Contract calls for the seller to deliver the Seller Property Disclosure Statement within 3 days of contract acceptance. Sellers are obligated by law to disclose all known material facts about the property and the SPDS is the instrument the seller uses to do so.

In this 7-page document, the seller lists all known material issues about the subject property and its condition. The SPDS allows the seller to disclose any known defects or damages to the home that occurred while the seller occupied the home. Or any items they learned when they purchased the home if there was a previous seller.  Here is an overview of the SPDS and some important things to know.

The SPDS document is divided into 6 general sections:

Ownership and Property: This section provides information about the property such as the address, ownership, and occupancy.

Building and Safety Information: This section provides information regarding the physical aspects of the property. Any past or present problems with the property along with any work or improvements to the property should be disclosed here. You should disclose these items to your home inspector for further investigation.

Utilities: This section provides the buyer with the types of utilities offered to the property and who provides them.

Environmental Information: In addition to information about environmental hazards, the seller is asked to disclose any issues related to soil settlement/expansion, drainage/grade, or erosion; noise from the surrounding areas, and any other odors or nuisances.

Sewer/Wastewater Treatment: The seller must disclose what type of sewer/wastewater treatment is available to the property and if it is connected to a sewer.

Other Conditions and Factors - Additional Explanations: The seller is given the opportunity to disclose any other information regarding the property that might affect the buyer’s decision-making process or the value of the property.

Here are some important items to note about the SPDS:

  • The buyer is responsible for verifying the accuracy of the information on the SPDS.
  • The seller must deliver the SPDS within 3 days of contract acceptance.
  • In addition to the SPDS, the buyer will also deliver an insurance claim history report (often called a CLUE report) on the property within 5 days of contract acceptance.
  • If you have a concern about any items, you should provide a copy of the SPDS to your home inspector.
  • If you don’t like something disclosed in the SPDS or the insurance claim report, you can cancel the contract within 5 days of your receipt of the SPDS and insurance claim report and receive a full refund of your earnest money.

Here's a link to the document:

Seller Property Disclosure Statement

When purchasing a home, it is important to take some time to read through the Seller Property Disclosure Statement to learn more about the condition of the property so you can make an educated decision to move forward with purchasing the home or to cancel the contract.