As a seller of residential real estate in Arizona, you are legally obligated to disclose certain facts about your property to potential buyers. The Arizona Association of REALTORS® created a 6-page disclosure form, the Residential Seller’s Property Disclosure Statement (SPDS) to help sellers in this situation. The SPDS is divided into 6 sections: ownership & property, building & safety equipment, utilities, environmental information, sewer/waste water treatment, and other conditions & factors which includes any information that might affect the property’s use or value or the buyer’s decision. SPDS is primarily designed to prompt the disclosure of past or present problems with termites and other pests, pool/spa problems, electrical issues, roof/plumbing problems, and potential nuisance issues and maintains that anything “material” must be disclosed. A blank, sample form can be accessed on the Arizona Association of Realtors website.
It may surprise many prospective buyers to learn that there are some potentially very important factors that sellers are not required to disclose. The law provides that neither a seller or their real estate agent may be sued for failing to disclose a death on the property, that the property has previously been occupied by someone with HIV/AIDs (or other diseases not transmitted by common occupancy), or that the home is located near a sex offender.
You should use a licensed real estate agent to sell your home who can help you meet your disclosure obligations. Additionally, it is recommended that you seek legal guidance to ensure you have fulfilled your obligations as failure to disclose key facts about the property can, and often does, result in a lawsuit.
This article is provided for informational purposes only and is not intended to replace individual legal advice.