What Buyers and Sellers Should Know
The Residential Seller’s Property Disclosure Statement, commonly called the SPDS, tells the buyer what the seller knows about the property. It is not an inspection report and it is not a guarantee that nothing else is wrong. Its value is the history and information the seller has that may not be obvious during a showing or even during a professional inspection.
What Is the SPDS?
The Arizona REALTORS® SPDS asks about ownership, utilities, structural components, roof, plumbing, electrical systems, heating and cooling, pools and spas, environmental conditions, pests, drainage, insurance claims and other matters affecting the property. The seller, not the REALTOR®, completes the form based on the seller’s actual knowledge. Arizona law requires sellers to disclose known material facts that affect the property. The SPDS form itself is not required by Arizona law. Arizona REALTORS® Residential Resale Real Estate Purchase Contract is used, the contract requires the seller to provide it.
Repairs Do Not Erase the Property’s History
A known problem may still need to be disclosed even if it was repaired. Past roof leaks, termite activity, plumbing leaks, water intrusion, structural repairs and similar conditions can remain important to a buyer. Arizona courts have specifically recognized the duty to disclose material past termite infestation and damage. For the seller, the better approach is to explain what happened and what was done about it. A repaired problem is still part of the property’s history.
When Does the Buyer Receive the SPDS?
Under the February 2026 Arizona REALTORS® Residential Resale Real Estate Purchase Contract, the seller must deliver the completed SPDS within three days after contract acceptance. The buyer has until the end of the Inspection Period or five days after receiving the SPDS, whichever is later, to disapprove items disclosed in it. If the seller delivers the SPDS late, the buyer still receives that five-day review period; the entire Inspection Period is not automatically extended. If the seller fails to provide the SPDS as required, the buyer may deliver a Cure Period Notice, giving the seller three days to comply before the failure becomes a breach of the contract. Late delivery can therefore keep the buyer’s SPDS-related rights open later into the transaction and create an avoidable contract problem for the seller.
The SPDS Does Not Replace an Inspection
The seller can disclose only what the seller knows. A seller may not know about a problem inside a wall, beneath a roof covering, under a slab or within equipment that appears to operate normally. Buyers should therefore read the SPDS together with the inspection report and other due-diligence information. A disclosed roof leak, termite history, drainage problem, addition or insurance claim may identify something that deserves closer investigation. The SPDS provides the seller’s knowledge.The inspection helps the buyer evaluate the property itself.
Disclosure Continues During Escrow
The seller’s disclosure obligation does not end when the original SPDS is delivered. If the seller discovers a new material fact or the condition of the property materially changes during escrow, that information must be disclosed to the buyer. Completing the SPDS is not permission to remain silent about something important that happens or becomes known later.
“As Is” Does Not Mean “No Disclosure”
An as-is sale does not eliminate the seller’s duty to disclose known material facts. “As is” addresses the condition in which the buyer agrees to purchase the property. It does not permit the seller to conceal a known material condition. The same basic disclosure duty remains even when the parties agree that the SPDS form itself will not be provided.
Some Matters Are Not Required to Be Disclosed
Arizona law generally does not impose liability for failing to disclose that a property was the site of a natural death, suicide, homicide or other felony; was owned or occupied by someone with HIV/AIDS or another disease not transmitted through ordinary occupancy; or is located near a registered sex offender. For buyers, silence about one of these matters does not mean it never occurred. If the information matters to you, investigate it independently.
What Sellers and Buyers Should Remember
Sellers should not minimize a known condition because it happened years ago, was repaired or seems unimportant. Buyers should not assume that a SPDS with few disclosures means the property has no problems. A detailed SPDS can simply reflect a seller who knows the home well and has disclosed its history thoroughly. For the seller, disclose what you know. For the buyer, read what is disclosed and investigate anything that matters.
The Bottom Line
The SPDS gives the buyer information an inspection alone cannot provide: the seller’s knowledge and history of the property. Used together with inspections and other due diligence, it helps the buyer make a better-informed decision and helps the seller satisfy an important disclosure obligation.
