Understanding the Arizona Seller Property Disclosure Statement (SPDS
The SPDS is a detailed form completed by the seller to disclose any known facts or material issues about the property. In Arizona, sellers are legally required to disclose material defects, even if selling the home "as-is." While this document provides valuable information, it’s not a substitute for a professional inspection.
The SPDS is divided into sections, each addressing different aspects of the property. Let’s walk through it!
- Property Address & Ownership Information: Confirms the property’s location and who owns it.
- Time Owned: Helps you understand how long the seller has lived in or owned the property — longer ownership might mean more comprehensive knowledge of the home.
- Occupancy Status: Indicates whether the home is owner-occupied, vacant, or rented. Vacant homes might hide issues not obvious until regular use resumes.
- Structural Integrity: Details any past or present structural issues, roof leaks, foundation problems, or cracks.
- Repairs & Alterations: Lists repairs, remodels, or additions, and whether the work was permitted. Unpermitted work could cause future headaches.
- Roof & Water Damage: Discloses roof age, previous repairs, and any signs of water damage or leaks.
Pro Tip: If major repairs were done, request documentation and warranties.
- Utility Providers: Lists companies servicing electricity, water, gas, internet, and trash.
- Septic, Sewer, or Water Systems: Specifies whether the home is on a public sewer, septic system, or well. Septic systems may require inspection and pumping before closing.
- Propane or Solar Systems: Details about solar panel leases, ownership, or propane tank refills.
Pro Tip: If systems are leased, review the lease terms carefully — you may need to assume payments.
- Pest Issues: Notes past or current infestations (e.g., termites, scorpions, rodents). Arizona homes are often treated for termites, so check for past reports.
- Soil Movement & Drainage: Reveals past flooding, drainage issues, or soil shifting, which can cause foundation damage.
- Hazardous Materials: Discloses asbestos, lead-based paint (in homes built before 1978), radon gas, or mold presence.
Pro Tip: Environmental issues might not always be visible. Consider specialized inspections if anything concerning appears in this section.
- Homeowners Association (HOA): Confirms whether the property is in an HOA, the fees, and any known violations or ongoing assessments.
- Community Restrictions: Lists rules, architectural guidelines, or rental restrictions.
Pro Tip: Always request the HOA's CC&Rs (Covenants, Conditions & Restrictions) to avoid surprises.
- Property Lines & Easements: Details any known boundary disputes or shared property features (like a shared driveway).
- Zoning & Use Restrictions: Notes zoning classifications and any restrictions affecting property use.
- Litigation & Insurance Claims: Discloses ongoing legal disputes, past insurance claims, or denied coverage.
Pro Tip: An insurance claims history (CLUE report) can show past property damage and claim payouts.
- Appliances & Systems: Lists included appliances, their age, and whether they’re in working order.
- Pool & Spa Information: Notes any pool or spa issues, repairs, or warranties.
- Smart Home Features: Discloses whether smart systems, like security cameras or thermostats, will stay or be removed.
Pro Tip: Verify which items stay with the home and what the seller plans to take — especially with valuable fixtures or built-in tech.
- Cross-Check with Your Inspection: Use the SPDS as a reference during your inspection to verify any issues or concerns.
- Ask Follow-Up Questions: If anything is unclear or missing, have your agent request clarification from the seller.
- Consider Additional Inspections: For issues like mold, pests, or soil conditions, specialized inspections might be worthwhile.
- Factor Repairs into Your Offer: If the SPDS reveals significant problems, you can negotiate repairs, credits, or a price reduction.
- The SPDS is a starting point — not a complete guarantee of the home’s condition.
- Sellers are only required to disclose known issues, so hidden or latent defects may not appear in the document.
- Work with your real estate agent to interpret the SPDS and decide whether to move forward, negotiate, or walk away.
Understanding the SPDS gives you valuable insight and peace of mind as you navigate your home purchase.
