Arizona Real Estate SPDS — Seller Disclosure Requirements

If you’ve been through the process of buying or selling a house in Arizona, you know that the seller must make disclosures about the property. The primary vehicle for this is the Residential Seller’s Property Disclosure Statement — commonly known as the SPDS.

What Is the SPDS?

The SPDS is a standardized form used in Arizona real estate transactions where the seller discloses known material information about the property. “Material” means information that could affect a buyer’s decision to purchase or the price they’d be willing to pay.

What Must Be Disclosed?

The SPDS covers a wide range of topics: structural condition — foundation, roof, walls, plumbing, electrical, HVAC. Environmental issues — lead paint, asbestos, mold, soil contamination. Water and sewer — source of water, septic vs. sewer, known drainage issues. Pest history — termites, scorpions, rodents. Neighborhood issues — noise, nuisances, HOA disputes, boundary disputes. Legal issues — liens, easements, zoning violations, pending litigation. And any other known material facts that could affect the property’s value.

The Duty Goes Beyond the Form

The SPDS form doesn’t cover everything. Arizona law imposes a broader duty: if you know of a material fact that could negatively affect the property’s value and that fact isn’t covered by the SPDS form, you still have to disclose it. The form is a minimum, not a ceiling.

What About Deaths on the Property?

Arizona has a specific carve-out: under A.R.S. § 32-2156, a seller is not required to disclose that a death occurred on the property — whether natural, suicide, or homicide. This includes haunted houses.

Consequences of Failing to Disclose

If a seller fails to disclose a known material defect, the buyer may have claims for fraud, negligent misrepresentation, and breach of contract. Damages can include the cost of repairs, the diminished value of the property, and in fraud cases, potentially punitive damages.

The Law Badgers handle real estate disclosure disputes. If you’ve purchased a home and discovered undisclosed defects, or if you’re a seller facing disclosure questions, we can help.