Seller Disclosure Requirements
in Arizona

Unlike states with bare-bones disclosure rules, Arizona law, buttressed by decades of case law, places a significant affirmative duty on sellers. While the term 'caveat emptor' is often mentioned, it is heavily modified by the legal requirement to disclose all known, material facts about a property. This obligation is formalized through the Arizona Association of REALTORS® (AAR) Seller Property Disclosure Statement, universally known as the 'SPDS.' This detailed questionnaire is the cornerstone of the state's property disclosure process. Sellers must provide this form to buyers within a few days of contract acceptance. Upon receipt, the buyer's inspection period begins, giving them a critical window to investigate the property, validate the seller's statements, and decide whether to proceed with the purchase. The core of the seller disclosure Arizona framework is transparency, shifting the risk from an unknowing buyer to a knowledgeable seller.

Fundamentally, the Arizona disclosure requirements compel sellers to reveal any fact that could materially impact the property's value or a buyer's decision to purchase it. The question of what must sellers disclose extends far beyond a leaky faucet. We're talking about significant structural issues, such as cracks in the slab foundation from expansive soil common in the East Valley, or evidence of past termite activity, a pervasive issue from Tucson to Flagstaff. Sellers must also disclose information about the plumbing and electrical systems, past or present roof leaks from monsoon storms, and any unpermitted improvements—a common trap in older Phoenix neighborhoods like Willo or Encanto. Furthermore, Arizona law has specific provisions regarding stigmatizing facts, such as whether a death occurred on the property or its proximity to known sex offenders, all of which must be handled with legal precision.

Arizona's unique desert environment introduces a host of geography-specific disclosures that Market trends show become central points of litigation. The presence of scorpions, for example, is considered a material fact that must be disclosed if known. Expansive soils, which can heave and crack foundations, are a major concern in areas like Gilbert and Queen Creek, and any known soil issues require disclosure. Another critical topic is the property's location relative to a fissure zone or a floodplain, as flash floods in normally dry washes can cause devastating damage. Beyond these, sellers must answer questions about Valley Fever (coccidioidomycosis spores in the soil), past mold growth from slow leaks behind stucco, and any history of pests beyond termites, such as roof rats or pack rats, which are common in homes near desert preserves like South Mountain Park.

Based on industry experience, litigating these disputes, the consequences of a failed property disclosure can be catastrophic for a seller. I once handled a case where a seller in Scottsdale meticulously painted over water stains on the ceiling of a downstairs bedroom, concealing a chronic leak from an upstairs balcony. The new owners discovered extensive rot and toxic mold after the first major summer rainstorm. The result wasn't just a repair bill; it was a lawsuit for fraudulent concealment leading to the court ordering a full rescission of the sale—the buyers got their money back, and the seller was saddled with a damaged, stigmatized house and hefty legal fees. This illustrates the critical difference between a latent defect (one not easily discoverable) and a patent one. A seller has no duty to discover latent defects, but they have an absolute duty to disclose any they already know exist.

To armor-plate your transaction against post-closing legal battles, meticulous honesty is your best shield. The most effective strategy is to complete the Arizona seller disclosure form with absolute transparency, treating it not as a marketing document but as a legal one. I strongly advise clients to invest in a pre-listing inspection from a certified Arizona home inspector. This report provides a neutral, third-party assessment that you can use to accurately complete the SPDS, and you can even attach the report as part of your disclosure package. Disclosing an issue upfront, like an aging HVAC unit in a Sun City West home, and documenting it properly, prevents it from becoming a negotiation-killing surprise during the buyer's inspection period. This proactive approach satisfies the seller disclosure Arizona requirements and builds crucial trust with a potential buyer.

For buyers, the SPDS is not the end of the story; it is the beginning of your investigation. Treat the seller's property disclosure as a roadmap for your own due diligence. If the seller checks 'yes' to past roof repairs, you should hire a licensed roofer to assess the quality of the work and the remaining life of the roof. If they disclose past treatment for subterranean termites, you must get your own termite inspection to check for current activity. The disclosure and subsequent inspection period is your single best opportunity to uncover the true condition of the home. Verifying the claims on the Arizona seller disclosure form with your own team of experts—your Realtor, home inspector, and other specialists—is the most important step you can take to protect your investment.