The Arizona Purchase Contract specifically states that the seller shall provide a property disclosure statement within five days after contract acceptance. By Arizona law, sellers are required to disclose known material facts to a potential purchaser. The vehicle for which this disclosure is made is not defined, but the Arizona Association of Realtors provides a thorough document that prompts sellers for specific areas that, if known, must be disclosed.
So what defines a material fact? A material fact is a anything that might alter a person’s decision to buy a property or change the terms and price a buyer is willing to accept. In other words – when in doubt, disclose!
Once the Seller Property Disclosure Statement (SPDS) is delivered, the buyer must provide notice of any items that they disapprove of within the inspection period or within five days after receipt of the SPDS, whichever is later.
In many cases, buyers are asked to waive the SPDS or disclosure within an As-Is sale or when a seller has never lived in the property. This is most common in the case of foreclosures. While there are portions of the AAR SPDS that a bank or lender could fill out – they are incredibly unlikely to complete an SPDS.
Click here to view a Sample SPDS.