What is SPDS? (Seller Property Disclosure Statement)
It can feel like there’s a mountain of paperwork in buying or selling a new home. But one document that shouldn’t go unnoticed is a Seller Property Disclosure Statement, often referred to as the SPDS, or ‘spuds’.
In this article we share exactly what an SPDS is and why it’s so important in real estate.
What is a Seller Property Disclosure Statement (SPDS)?
The Seller Property Disclosure Statement (SPDS) is integral to most Arizona real estate transactions. While not legally required, it's strongly recommended because it helps protect both the buyer and the seller. The SPDS gives sellers a formal way to disclose known issues with the property and offers buyers key information during the inspection period.
Arizona law requires sellers to disclose all known material facts about a property. A properly completed SPDS helps meet that obligation and shield sellers from future legal claims. Missing or inaccurate information, on the other hand, can lead to costly disputes.
The SPDS is divided into six sections:
Ownership and General Property – Includes address, ownership, and occupancy.
Building and Safety – Covers physical condition, repairs, and any known issues.
Utilities – Lists utility services and current providers.
Environmental Information – Notes issues like drainage, soil movement, or nearby nuisances.
Sewer and Wastewater – Describes the property's waste treatment systems.
Other Conditions – Discloses anything impacting value or a buyer's decision.
Sellers must deliver the SPDS within five days of contract acceptance. Buyers then have five days to cancel the contract and receive a full refund.
Buyers should always share the SPDS with their home inspector. While sellers disclose what they know, it's up to buyers to verify that information, especially if the SPDS notes concerns like mold, water damage, or past repairs.
Because the SPDS can carry serious legal consequences, involving a real estate attorney is wise. An attorney can help ensure the document is complete, accurate, and compliant with Arizona law. At Dessaules Law Group, we guide buyers and sellers through every stage of the real estate process. Contact us today if you need help with a disclosure issue or have questions about your rights.
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