Reading the Seller Property Disclosure: What to Look For

The 14-page form the seller fills out. Where the truth usually lives, and where it does not.

The seller is signing under penalty of misrepresentation. The form is bargaining power when used well.

What it is

In Arizona, sellers are required to complete the

Seller's Property Disclosure Statement (SPDS)

, a ~14-page form covering everything they know about the home's condition, history, and any issues.

The form is delivered to you (the buyer) early in escrow, often within 5 days of offer acceptance. You have a defined window to review and respond.

The disclosure is a legal document. The seller is signing under penalty of misrepresentation. Lying on it (or failing to disclose known material issues) creates legal liability for the seller.

The sections that matter most

Title section.

Confirms the seller actually owns the property and has the legal right to sell it. Look for any liens, easements, encroachments, or pending litigation.

Property condition.

The biggest section. Covers structural issues, roof, foundation, plumbing, electrical, HVAC, appliances, pools, etc. The seller checks "yes / no / unknown" for each item and explains "yes" answers.

Known defects.

Specific known issues with the home. "Yes" answers here are real signals. A seller disclosing a previous water leak that was repaired isn't a red flag per se; it's information you use during your inspection.

History.

Past repairs, insurance claims, environmental issues. Look for patterns. A house with 3 prior insurance claims has a story you want to understand before closing.

Environmental.

Mold, asbestos, lead paint (mandatory for homes built before 1978), radon, soil conditions, flooding history. Be especially attentive to flood-zone history if the property is in any low-lying area.

Neighborhood.

Noise complaints, easements, pending developments, HOA issues, deed restrictions.

What "yes" answers actually mean

When a seller checks "yes" to a question (e.g., "Are you aware of any past water damage?"), they're required to explain. The explanation matters.

A "yes" with a clear explanation and resolution

("Past leak under master bath sink, repaired 2022 by ABC Plumbing, no recurrence") is informational. Use it during inspection to verify the repair held.

A "yes" with a vague or evasive explanation

("Some water at some point, unclear of details") is a red flag. Either the seller is hiding the full story or they don't actually know.

A "no" that contradicts what the inspector finds

is a legal issue. If the seller said "no leaks ever" and your inspector finds clear evidence of recent water damage, the seller's disclosure may be fraudulent. Worth discussing with a real estate attorney.

"Unknown" answers

are valid but worth scrutinizing. A seller who has lived in the home for 10 years and answers "unknown" to most condition questions is signaling they didn't pay attention. Inspector becomes more important.

The "no, no, no" disclosure

Sometimes a seller fills out the entire disclosure as "no" or "unknown" to every question. This happens most often when:

• The seller is an estate (heir selling the deceased owner's home)
• The seller is an out-of-state owner who hasn't lived in the home
• The seller is an investor selling a rental property they never lived in
• The seller is being careless or evasive

A "no, no, no" disclosure isn't necessarily fraudulent; it can be accurate if the seller genuinely doesn't know. But you lose the information value of the disclosure, which means your inspection becomes more important.

How to use the disclosure during your inspection

Print the disclosure. Hand it to your inspector before they start. Ask them to specifically verify any "yes" answers (confirm the repair held, look for evidence of the disclosed issue, check related systems).

If the disclosure says "previous roof leak repaired 2023," the inspector should specifically inspect the roof above the affected area and the ceiling/walls below it for any signs of recurrence.

When the disclosure and the inspection don't agree

This is the most consequential moment in the seller's-disclosure review.

Scenario A: Seller disclosed an issue, inspector confirms it's fixed.

Fine. Move forward.

Scenario B: Seller disclosed an issue, inspector says it's NOT fixed.

Negotiate the repair through your inspection response.

Scenario C: Seller did NOT disclose an issue, inspector finds it.

Negotiate the repair. Note for your records (the inspector's report is documentation that this was discovered DURING your contingency period).

Scenario D: Seller DID NOT disclose something material that they clearly knew about (and the inspector finds evidence of).

Legal issue. Talk to me. Talk to a real estate attorney. You may have the right to cancel the contract, negotiate aggressive remedies, or pursue damages after closing.

Scenario E: Seller disclosed a serious unrepaired issue and is selling the home "as-is."

This is the seller saying "I know, I'm not fixing it, factor it into your price." Sometimes a good deal. Sometimes the disclosed issue is the tip of an iceberg. Inspect carefully.

Specific things to look for

Insurance claim history.

A history of multiple claims (especially water claims) can mean ongoing risk AND higher insurance premiums for you as the new owner.

Roof age.

Important in Phoenix. Roofs reaching end of life are major capital expenses.

HVAC age.

Same. A 15-year-old AC system in Phoenix is approaching replacement.

Septic / well disclosures.

If the home is on septic or well (common in horse properties, parts of Cave Creek, Carefree, north Phoenix), the disclosure should cover the system's age, last inspection, and any issues.

Pool history.

Leaks, resurfacing history, equipment age.

Pest history.

Termites, scorpions, pack rats. Most Phoenix homes have some pest history; the question is whether it's being actively managed.

Neighbor disputes.

Past disputes about property lines, noise, pets, etc. Sellers often try to minimize these but disclosure is required.

Easements and encroachments.

Easements (right of others to use part of your property) and encroachments (a neighbor's fence on your property or yours on theirs) can affect future use and value.

What the disclosure does NOT cover

Future risks.

The disclosure is about what the seller knows TODAY. Future changes (new development next door, HOA rule changes, road expansion) aren't here.

Latent defects the seller didn't know about.

If something was hidden behind a wall, the seller may have no idea it exists. The disclosure can only be as good as the seller's knowledge.

Issues the seller fixed before listing.

Sometimes sellers fix minor issues without disclosing the underlying history. This is generally allowed.

Square footage / room counts.

These come from public records, not the seller's disclosure.

Frequently asked

Can I waive the seller's disclosure?

In Arizona, generally no for owner-occupied resales. Investor and bank-owned sales sometimes come with limited or "as-is" disclosures.

What if the seller refuses to provide the disclosure?

Talk to me. This is unusual and may indicate they're hiding something. Worth pushing or walking.

Can I sue the seller after closing for issues they didn't disclose?

Yes, if you can prove they knew about the issue and failed to disclose it. The legal standard is "actual knowledge," which is hard to prove. Talk to a real estate attorney.

What if I notice the seller's disclosure was filled out hastily?

Common. Sellers don't always take the time to do it carefully. The inspector becomes more important. Ask your inspector specifically about any items the seller marked "unknown."

Does the disclosure include lead paint info?

For homes built before 1978, federal law requires a separate lead-based paint disclosure. The Arizona SPDS doesn't always cover this, but it's required separately for pre-1978 homes.