Posted on Sunday, 18th April 2010 by Anna Kulbinski

First of all, what is “SPDS”? SPDS (pronounced “SPUDS”) is short for Seller’s Property Disclosure Statement. It is a disclosure of all important facts about the property to the buyer, however, we’re not seeing it done all too often.

It feels like it’s the new trend in the Phoenix real estate market- “No CLUE, No SPDS”. Yes, it has been accepted  on lender owned homes, but why are we seeing the same verbiage on short sales and traditional sales? How did the seller decide that is the best route? If you’re selling your house and have decided not to provide SPDS, you should read on.

According to Michelle Lind, an attorney for the Arizona Association of Realtors:  “The seller has a duty to disclose known facts that materially affect the value of the home that are not readily observable and that are not known to the buyer” .

And for any  home seller who thinks they are not required to provide SPDS because they are selling the property “as is”,  Michelle Lind states:  “An “as is” clause in the sales contract does not shield a seller from liability for failure to disclose known material defects in the property. For example, if the seller knows that the roof leaks, an “as is” clause in the sales contract does not protect the seller from fraud for non-disclosure of the roof leaks.”

Additionally, the first page of the Residential Seller Advisory  (every seller should get a copy) states:

“Sellers are obligated by law to disclose all known material (important) facts about the property to the buyer. Arizona law requires that you disclose material facts about the property whether or not you are asked by the buyer or a real estate agent, or when asked to complete the disclosure form”…

. . . .

“If the buyer asks you about an aspect of the property, you have a duty to disclose the information….”.  “If you do not make the legally required disclosures, you may be subject to civil liability. Under certain circumstances, nondisclosure of a fact is the same as saying that the fact does not exist. Therefore, nondisclosure may be given the same legal effect as fraud.”

So, if you feel you have no obligation to provide the SPDS because you never occuppied the property, or because you’re selling it “as is”, hopefully now you know that no matter what reason you should always provide the SPDS.

Tags: , , ,
Posted in Buyers, Sellers, Various | Comments (2)

2 Responses to “Selling Your Phoenix Home? Have You Filled Out The SPDS?”

  1. Phoenix Real Estate Blog » Blog Archive » Why Your Phoenix Home May Not Sell If You Don’t Have A Realtor? Says:
    June 1st, 2010 at 4:21 pm

    [...] in a Phoenix home purchase recently may not know that sellers are legally obligated to provide a property disclosure to the [...]

  2. Phoenix Real Estate Blog » Blog Archive » Have You Qualified Your Phoenix Real Estate Agent? Says:
    June 4th, 2010 at 9:26 am

    [...] OWNER CANNOT MAKE ANY REPAIRS, WARRANTIES, OR DISCLOSURES- I understand the repairs part. The seller is in financial distress and will not make any repairs. But why not disclosures? The house was occupied by the owner. Why sellers who occupy the property refuse to provide disclosures? Do they think “no disclosure, no liability?” If so, perhaps they should read my previous post about the Seller Property Disclosure Statement. [...]

Leave a Reply