When selling your Arizona home, transparency isn’t just the right thing to do—it’s your legal obligation and your best protection against future problems. The Seller’s Property Disclosure Statement, commonly called the SPDS or “spuds,” serves as your comprehensive disclosure of everything you know about your property’s condition. While revealing your home’s imperfections might feel uncomfortable, properly completing this document actually strengthens your position and helps ensure a successful transaction.
At West USA Realty, we’ve guided thousands of sellers through the disclosure process, and we understand the concerns you might have about sharing your property’s issues with potential buyers. This guide will walk you through completing your SPDS effectively, helping you understand not just what to disclose, but how proper disclosure actually protects you and facilitates a smoother sale.
Arizona law requires you to disclose known material facts about your property that aren’t readily observable to buyers. This legal standard, established through landmark court cases in our state, means you must tell buyers about problems they couldn’t easily discover during a normal property viewing. The word “known” is crucial here—you’re only responsible for disclosing what you actually know about your property. You aren’t expected to hire inspectors or investigate potential problems you’ve never noticed.
Material facts include anything that would affect a buyer’s decision to purchase or the price they’d be willing to pay. This encompasses physical defects like roof leaks or foundation cracks, legal issues such as boundary disputes or permit violations, and environmental concerns including past flooding or pest infestations. The disclosure requirement continues throughout your entire transaction. If you discover new issues after completing your initial SPDS, you need to update your disclosures promptly.
The consequences of failing to disclose known problems can be severe and long-lasting. Buyers who discover undisclosed defects after purchase can sue for damages, potentially recovering not just repair costs but also diminished property value and their legal fees. In cases where sellers intentionally concealed problems, courts may award additional punitive damages. Beyond financial liability, non-disclosure can cause your transaction to fail at any point, even moments before closing, when buyers discover hidden issues. Your reputation in what remains a relationship-driven business can suffer lasting damage, affecting not just your current sale but potentially future transactions as well.
While Arizona law allows you three days after contract acceptance to deliver your SPDS to buyers, completing it earlier offers significant advantages.
Many successful sellers and their West USA Realty agents choose to complete the SPDS before even listing the property. This proactive approach allows you to address any concerning issues before marketing begins, price your home accurately based on its actual condition, and provide immediate disclosure to serious buyers, eliminating surprises during negotiations.
When you complete your SPDS during the listing process, you demonstrate transparency from the start, building trust with potential buyers. Properties with upfront, complete disclosure often attract more serious buyers who appreciate honesty and can make informed decisions quickly. Waiting until after contract acceptance to complete your SPDS risks buyer disappointment or contract cancellation if they’re surprised by previously unknown issues.
The SPDS covers every aspect of your property systematically.
In the ownership and occupancy section, you’ll provide basic information about how long you’ve owned the property and whether you’ve lived there. If you’re an investor who has never occupied the property, stating this fact sets appropriate expectations about your knowledge level. Estate sellers should note their representative capacity and limited familiarity with the property’s history.
The property condition section requires detailed information about all major systems. For your roof, provide its age, material type, and any repair history. If you’re uncertain about exact dates, approximate ages are better than leaving items marked “unknown.” Include contractor names and dates for any work performed. Document your HVAC system’s age, type, and service history. Regular maintenance records actually become selling points, showing responsible ownership.
When disclosing plumbing information, specify pipe materials and any repair history. If you’ve addressed problems, explain what was fixed and when. This demonstrates proactive maintenance rather than deferred problems. For electrical systems, note any updates or modifications, being sure to indicate whether proper permits were obtained for any work. Unpermitted work must be disclosed, as buyers will likely discover it during their due diligence anyway.
The building and safety section covers structural elements that buyers particularly scrutinize. Minor settling cracks common in Arizona’s climate should be described accurately rather than dramatically. Instead of simply checking “yes” to foundation problems, write “minor settling crack in garage floor, monitored for two years with no progression.” This context prevents unnecessary alarm while maintaining complete honesty.
Environmental disclosures require particular care and completeness.
Past water intrusion events must be disclosed even if completely repaired. Rather than simply noting “previous water damage,” provide context: “Minor water intrusion during 2018 monsoon through back door. Replaced weather stripping and installed French drain. Professional restoration completed, no issues since.” This detailed explanation shows the problem was properly addressed and hasn’t recurred.
If your property has experienced mold, pest infestations, or soil problems, provide complete histories including professional treatments and current status. For homes built before 1978, lead paint disclosure is federally required. Include information about any environmental testing performed and its results.
HOA and legal information affects buyers’ future obligations and rights. Provide accurate, current HOA fee information and note any special assessments or violations. Disclose any boundary disputes, easements, or deed restrictions affecting the property. If legal actions are pending, buyers need this information to make informed decisions.
The way you present information matters almost as much as what you disclose.
Vague statements create anxiety and questions, while specific, detailed explanations provide clarity and build confidence. Instead of writing “some water damage,” explain: “Water stain on master bedroom ceiling from March 2019 roof leak. Leak repaired by ABC Roofing in April 2019, drywall replaced by DEF Contractors in May 2019. No recurring issues, repair documentation available.”
When describing repairs, include what the problem was, when it occurred, how it was fixed, who performed the work, and whether any warranties apply. This comprehensive approach demonstrates transparency and responsible property maintenance. Make clear distinctions between past problems that have been resolved, current ongoing issues, and potential future concerns. Buyers need to understand whether they’re inheriting active problems or simply learning about resolved historical issues.
The additional information section provides valuable space to contextualize your disclosures. Use this area to clarify any “yes” answers that might cause concern, reference available repair documentation, explain your maintenance philosophy, and highlight upgrades or improvements that add value. This narrative section humanizes your disclosures and helps buyers understand your property’s complete story.
Sellers often face situations where they suspect problems but lack certainty.
In these cases, disclose what you’ve actually observed without speculating about causes. If you notice an occasional musty smell in the basement after rain, state that observation and let buyers investigate further. Don’t guess about whether it’s mold, drainage, or ventilation issues—simply report what you know.
When you have secondhand information about pre-existing issues from previous owners, disclose what you were told while noting it as secondhand information. Provide any documentation you received, but make clear you cannot personally verify the information.
For recurring problems that have been addressed multiple times, provide the complete history of all repair attempts, current status, and available documentation. Buyers deserve to know if issues have been persistent despite remediation efforts.
Selling a property “as-is” doesn’t eliminate disclosure obligations. You must still complete the SPDS fully and honestly. “As-is” simply means you won’t make repairs or provide credits, not that you can hide known problems. Buyers in as-is transactions especially rely on complete disclosure to make informed decisions about assuming property conditions.
Estate sales present unique challenges since executors often have limited knowledge about the property’s history. Note your representative capacity clearly and disclose any information available from estate documents. Consider adding a statement like “Seller is estate executor and has not occupied property. Disclosure based on available records and limited personal knowledge.” This sets appropriate expectations while fulfilling disclosure obligations.
Investment property owners should disclose all tenant-reported issues and provide comprehensive maintenance records. Note if tenants prevented full property inspection and include relevant lease information. Tenants often report problems that owner-occupants might experience directly, making maintenance records particularly important for rental property disclosures.
Maintaining comprehensive records protects you throughout the selling process and beyond.
Keep all repair and maintenance receipts, contractor invoices and warranties, photos documenting conditions, and communications about property issues. This documentation supports your disclosures and demonstrates good faith if questions arise later.
Consider obtaining a pre-listing inspection to identify issues you might not have known about. This professional assessment helps you complete your SPDS more accurately, make informed decisions about pre-listing repairs, and provide buyers with professional documentation of your property’s condition. Having an inspection report also shows proactive transparency that buyers appreciate.
Consistency across all your communications prevents confusion and potential liability. Ensure your SPDS disclosures align with verbal statements to buyers, information provided to your agent, and any other written documentation. Mixed messages create doubt and can undermine the trust necessary for successful transactions.
At West USA Realty, we understand that completing the SPDS can feel overwhelming. Our experienced agents guide you through each section, ensuring you understand what needs to be disclosed and how to present information effectively. We never counsel concealment or minimization of problems. Instead, we help you frame disclosures in ways that maintain buyer confidence while protecting your interests.
Our agents help you gather necessary documentation, connect you with professionals when technical explanations are needed, and ensure your disclosures meet all legal requirements. We’ve seen how proper disclosure actually facilitates sales rather than hindering them, and we’ll help you navigate this critical process with confidence.
We also understand that disclosure continues throughout your transaction. If new issues arise or inspections reveal previously unknown problems, we’ll help you update your disclosures appropriately and negotiate fairly with buyers. Our goal is completing your sale successfully while minimizing your liability exposure.
The Seller’s Property Disclosure Statement transforms from an intimidating obligation into a powerful tool when completed properly. Your transparency builds buyer trust, reduces negotiation surprises, and protects you from future legal issues. Rather than viewing disclosure as revealing your home’s flaws, see it as demonstrating your integrity and setting the stage for a successful transaction.
West USA Realty brings decades of experience helping Arizona sellers navigate the disclosure process effectively. Our agents understand the balance between complete disclosure and strategic presentation. We’ll ensure you meet all legal obligations while positioning your property for a successful sale.
Don’t let disclosure concerns prevent you from moving forward with your selling plans. Contact West USA Realty today to discuss how we’ll guide you through the SPDS process and every other aspect of selling your home. Our expertise in handling property disclosures, combined with our comprehensive marketing strategies and negotiation skills, ensures you’ll achieve your selling goals while protecting your interests. Let’s start your successful selling journey with the confidence that comes from professional guidance and complete transparency.