Seller Property Disclosure Statement (SPDS) When Selling Home in Arizona
When you are selling your home in Arizona, the listing agent will ask you to fill in a Seller’s Property Disclosure Statement. In real estate world, we refer to this document as the “SPDS” (spuds). In Arizona, sellers are obligated by law to disclose all known material (important) facts about the property and the SPDS is designed to assist in making these disclosures. Sellers are instructed to complete the form by answering all questions as truthfully and as fully as possible to their best knowledge.
What is Seller Property Disclosure Statement (SPDS)?
The SPDS is a seven page standard document created by Arizona Realtors® Association that focused on the condition of the property being sold. The SPDS is designed to protect the Seller. It gives seller the opportunity to disclose things about your home to potential buyers, so that they can make informed decisions. In Arizona, sellers are legally obligated to disclose all known material facts about the property to the buyer. The key to the SPDS is when in doubt DISCLOSE, DISCLOSE and DISCLOSE.
Read 5 Tips to fill Seller Property Disclosure Statement (SPDS)
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.
Utilities
This section provides the buyer with they types of utilities offered to the property and the service provider.
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.
What information seller not obligated to disclose?
There is some information that a seller does not legally have to disclose, such as:
- Whether a suicide, natural death, murder, or any other felony was committed at the property
- Whether the property is located in an area with a sex offender. (Buyers can look up this information online, using the Arizona Department of Safety sex offender database.)
- Whether the property was previously owned by someone diagnosed with AIDS, exposed to HIV, or diagnosed with any other disease not known to be transmitted through occupancy
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.
When are sellers required to provide SPDS?
Based on 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. It is highly advised that seller complete the SPDS before putting their home on the market for sale.
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ area, we hope you will consider us. Contact us today for complimentary consultation.
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