The Seller’s Property Disclosure Statement (SPDS), pronounced “spuds”, is a key document in the home buying and home selling process in Arizona. In this state, it’s required by law for a seller to disclose all material facts of a property to a prospective buyer.
Once a home is under contract, the seller must deliver the SPDS to the buyer within 5 days of contract acceptance. The SPDS covers 7 pages of detailed questions, and facilitates the disclosure and due diligence process for seller and buyer.
Since buyers use this document to help them make an informed decision on whether or not to move forward with the sale, it is the role of the seller to complete the SPDS in the most truthful manner and as fully as possible.
The role of the buyer is to carefully review the SPDS to verify the information. Here are some hints for a prospective buyer:
- Actively do your own investigations utilizing the resources outlined on the Arizona Department of Real Estate’s website and the Buyer Advisory.
- Take a walk through the community, introduce yourself as a prospective buyer and ask questions.
- Compare the SPDS to the home inspection report looking for inconsistencies or areas where you would like further elaboration.
- If in doubt, ask for written explanations on questions that remain blank.
- Consider the purchase of a home warranty.
- If a property is in a homeowners association (HOA) it must be disclosed with a separate set of disclosures to be reviewed.
- Understand that sellers are not obligated to disclose certain information, so you may want to review those items with your real estate agent.
Transparency on the part of a seller and investigation on the part of a buyer will almost always result in a win-win for both parties.
