What Is a Seller's Disclosure and What Do I Have to Disclose in Arizona?

Short answer: in Arizona, sellers are legally required to disclose every known material fact about a property, meaning anything that could affect its value or a buyer's decision to purchase, even if the buyer never asks. This is done through the Seller's Property Disclosure Statement (SPDS), and the key word is "known." It's about what you actually know, not just what happened while you owned the home. Arizona is often called a "buyer beware" state, but that duty to disclose known material facts is the twist that overrides it.

Whether you're selling your North Scottsdale home or buying one, understanding disclosure is one of the most important, and most misunderstood, parts of the transaction. Get it right and you protect yourself from expensive problems down the road. Here's a clear breakdown of what the seller's disclosure is, what you have to reveal, and what you don't.

What Is the SPDS?

The Seller's Property Disclosure Statement, or SPDS, is a detailed, multi-page form published by the Arizona Association of REALTORS® (AAR). The seller completes it to give the buyer a written account of the property's known condition, history, and any material issues.

A few things to understand about it:

• It reflects the seller's knowledge, not a professional inspection. The SPDS is not a warranty or a guarantee of condition. That's why buyers still order their own independent inspection.
• Arizona law doesn't mandate one specific government form, but the duty to disclose known material facts is the law, and the AAR's SPDS is the standard tool used in virtually every professional residential sale to satisfy it.
• The standard AAR purchase contract requires the seller to deliver the completed SPDS to the buyer (commonly within five days of contract acceptance), and the buyer reviews it during their inspection period.

The Legal Standard: Known Material Facts

The rule Arizona sellers must live by is straightforward in concept: you must disclose all known material facts that could adversely affect the value or desirability of the property. Two words carry the weight.

Material means important enough that it could influence a buyer's decision or the price they'd pay. Known means it's information you actually have. Importantly, your disclosure duty covers what you learned when you bought the home, from your own past inspections, and from living in it, not just events during your ownership. And the obligation stands even if the buyer never asks, and even if the parties agree not to use an SPDS at all.

What You Generally Must Disclose

The SPDS walks sellers through the major categories. Known issues in any of these should be disclosed:

• Structural and building components: foundation movement, roof leaks (even if repaired), problems with walls, ceilings, or floors
• Systems and mechanical: plumbing, electrical, heating and cooling, pool and spa equipment
• Utilities and water: water source (city, private well, or shared well), sewer versus septic, and any known water quality or service issues
• Environmental hazards: lead-based paint, mold, asbestos, radon, soil or drainage concerns
• Property history: prior insurance claims, past litigation involving the property, permits, and repairs or improvements you know about
• Pests: termite history and treatment
• Location and neighborhood factors: flood zone status, and known nuisances such as noise or proximity to a military airport or accident zone
• HOA details: the association name and contact, current dues, and any known special assessments or pending changes
• Any other known material fact that could affect a buyer's use or enjoyment of the home

When in doubt, the safe and smart move is to disclose. Truthful, thorough disclosure is your best protection.

What You Do Not Have to Disclose in Arizona

This is where Arizona law is unusually specific, and where sellers often have questions. Under Arizona statute, a seller and their agent are not required to disclose, and carry no liability for failing to disclose, that a property was the site of:

• A natural death, suicide, or homicide
• Any felony
• A previous occupant who had or has a disease not transmitted through ordinary occupancy of the home, such as HIV/AIDS

Information about registered sex offenders is also handled through Arizona's public database rather than through a seller's disclosure duty.

One important caveat: while you may not be required to volunteer these items, you generally cannot knowingly and willfully lie if a buyer asks a direct question. If you're facing one of these gray areas, it's worth a quick conversation with your agent or a real estate attorney.

A Few Special Situations to Know

• Homes built before 1978: A separate federal law requires a lead-based paint disclosure, independent of the SPDS.
• Wells and septic systems: Common on larger North Scottsdale and far-north lots, these often call for additional inspection and a separate disclosure addendum.
• Property in unincorporated county areas: Arizona law can require a separate Affidavit of Disclosure covering zoning, access, utilities, and other rural conditions. This comes up on some parcels outside city limits.
• HOA communities: Beyond your SPDS answers, buyers have a separate right to receive the association's governing documents, financials, and meeting minutes, which your agent coordinates.

What Happens If You Don't Disclose

Nondisclosure is one of the most common sources of post-closing lawsuits in real estate. A buyer who discovers a known material defect that was concealed can pursue remedies including rescinding the sale or seeking damages. The irony is that most disclosure disputes are entirely avoidable. Honest, complete disclosure up front almost always costs a seller far less than a claim after closing.

Smart Tips for Sellers

• Complete your SPDS before you list. It removes last-minute pressure and lets you address issues on your terms.
• Attach supporting documents. Invoices, receipts, permits, warranties, and past inspection reports strengthen your disclosures.
• Answer every applicable question truthfully and thoroughly. Vague or blank answers invite trouble.
• Disclose when you're unsure. Over-disclosing is rarely a problem; under-disclosing frequently is.

Arizona Seller's Disclosure FAQ

What is a seller's disclosure in Arizona? It's a written statement, the Seller's Property Disclosure Statement (SPDS), in which the seller reports all known material facts about the property's condition and history to the buyer.

What do I legally have to disclose when selling a home in Arizona? All known material facts that could affect the property's value or desirability, even if the buyer doesn't ask. This includes structural, mechanical, environmental, utility, and property-history issues you know about.

Is a seller's disclosure required by law in Arizona? Arizona doesn't mandate one specific government form, but the legal duty to disclose known material facts is required, and the AAR's SPDS is the standard way sellers meet it.

What do sellers not have to disclose in Arizona? By statute, sellers need not disclose a death, suicide, homicide, or felony on the property, or that a prior occupant had a disease not transmitted by ordinary occupancy. Sellers still cannot knowingly lie if directly asked.

Do I have to disclose a death in the house in Arizona? No. Arizona law specifically exempts sellers from disclosing natural deaths, suicides, or homicides on the property.

When does the seller have to provide the SPDS? Under the standard AAR contract, typically within five days of contract acceptance, and the buyer reviews it during the inspection period.

What happens if a seller hides a known defect? The buyer may be able to rescind the sale or pursue damages after closing. Full, honest disclosure is the best protection against these claims.

Selling in North Scottsdale? Let's Do It Right

Disclosure done well protects you and builds trust with buyers, which tends to make for smoother, cleaner closings. When you list with me, I guide you through the SPDS carefully, help you document everything properly, and make sure nothing that should be disclosed gets missed.

Thinking about selling in North Scottsdale? Call or text Brent Votroubek at (319) 210-2622

About the author: Brent Votroubek is a luxury real estate specialist with Compass serving North Scottsdale, including DC Ranch, Silverleaf, Troon, Mirabel, and Paradise Valley, with 18+ years of experience and more than $600 million in closed sales. Licensed in Arizona & Iowa.

This article is for general informational purposes only and is not legal advice. Disclosure obligations and forms change and can vary by property and situation. Always confirm current requirements with your REALTOR® or a licensed Arizona real estate attorney. Equal Housing Opportunity.