When buying or selling a home in Arizona ( or anywhere in the U.S.) transparency is key. One of the most important tools that ensures buyers understand the condition of a property before closing is the seller’s disclosure. Whether you’re a first-time seller or a seasoned investor, knowing what this document is (and why it matters) can save you from potential headaches down the road.
Understanding the seller’s disclosure
A seller’s disclosure is a legally required document where the seller outlines all known issues, defects, or past repairs related to the property. It’s essentially the seller’s opportunity to be upfront about the home’s condition.
Think of it as a “report card” for the house. It may not be perfect, but it should provide a clear and honest snapshot of the property’s history and condition.
What must be disclosed?
While requirements vary by state, in Arizona, the disclosure is typically provided through the Arizona Association of Realtors® (AAR) Seller’s Property Disclosure Statement (SPDS).
Sellers are expected to disclose information such as:
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Structural Issues: Foundation cracks, roof leaks, or past flooding.
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Mechanical Systems: Problems with plumbing, HVAC, or electrical systems.
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Environmental Concerns: Pest infestations, asbestos, radon, or mold.
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Appliances & Utilities: Whether included appliances work properly.
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Legal Matters: HOA fees, boundary disputes, or zoning issues.
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Past Repairs or Renovations: Any work that may affect the property’s value or safety.
Why the seller’s disclosure matters
For buyers, this document builds trust. It helps them make an informed decision and avoids unpleasant surprises after closing.
For sellers, it’s about protection. By disclosing known issues upfront, sellers reduce the risk of legal disputes later; because hiding information can potentially lead to lawsuits, cancelled contracts, or financial penalties.
What if something is left out?
Intentionally leaving out information can be considered fraudulent misrepresentation. Even if the omission was accidental, failing to disclose a material issue could result in costly legal consequences.
That’s why honesty is always the best policy. If you know about a problem, it’s better to disclose it and let buyers decide how to move forward.
Tips for sellers
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Be Thorough: Fill out every section of the disclosure honestly.
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Don’t Guess: If you’re unsure, say so instead of leaving blanks.
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Provide Documentation: Share receipts or reports for repairs and inspections.
Final thoughts
The seller’s disclosure isn’t just a formality. It’s a cornerstone of a fair real estate transaction. By being transparent, you not only protect yourself legally but also foster goodwill with buyers, making the sale smoother and more trustworthy.
If you’re preparing to sell your home in Scottsdale, Paradise Valley, Phoenix, or anywhere in the Valley, I can walk you through every step.
👉 Thinking of selling your home? Contact me, Arnaud Lavigne, Owner/Designated Broker of AGL Real Estate, for expert guidance and a smooth, stress-free experience.