What Is the SPDS and What Do Sellers Have to Disclose in Arizona?

By Dr. Kevin Shufford | May 22, 2026

Of all the paperwork involved in selling a home in Arizona, the SPDS is the one that produces the most anxiety — and the most confusion. Sellers worry about disclosing too much. They worry about what they’re required to disclose versus what they simply know. And occasionally, they make the mistake of under-disclosing on the assumption that buyers won’t find out.

That last instinct is where the real liability lives. Here’s a clear-eyed walk through what the SPDS actually is, what it requires, and what the stakes are if you get it wrong.

What the SPDS Covers — All Six Sections

The Arizona Association of Realtors SPDS is organized into six major sections. Every seller needs to work through each one carefully:

1. Structural and Mechanical

This is the largest section, and often the most consequential. It covers the roof (age, condition, prior leaks, repairs), foundation, walls, windows, doors, HVAC systems, plumbing, electrical, and appliances. You’re being asked to disclose known defects and known history — not to diagnose problems you’re unaware of. But if you know the roof leaked in 2023 and you had it patched, that goes on the form.

2. Environmental

Covers lead-based paint (for homes built before 1978), asbestos, mold, radon, underground storage tanks, and soil or water contamination. Arizona’s climate means HVAC systems are under heavy use — mold from water intrusion around coolers or AC units is not uncommon, and must be disclosed if known.

3. Property History

This section asks about prior insurance claims on the property, whether the property has been involved in litigation, and prior water damage, flooding, or drainage issues. If you filed a homeowner’s insurance claim for a broken pipe in 2021 and the repairs were made, that history belongs on this form. Buyers understand that homes have histories — what they don’t accept is learning about those histories after closing.

4. Utilities

Covers water source (city, well, shared well), sewer versus septic, and known issues with water quality or service. For Arizona properties on private wells or septic systems, this section carries additional weight and often requires a separate inspection and disclosure addendum.

5. HOA and Community

If the property is part of a homeowners association, you must disclose HOA name, contact information, current dues, any known special assessments, and pending rule changes. Buyers have a separate right under Arizona law to receive a copy of the HOA’s CC&Rs, bylaws, financials, and meeting minutes — your agent coordinates that package separately. What belongs in the SPDS is your current understanding of HOA status and any known issues.

6. Other Material Facts

This catch-all section asks whether there are any other known facts that materially affect the value or desirability of the property. “Material fact” in Arizona case law means anything a reasonable buyer would want to know when making a purchase decision. Neighbor disputes that affect the property, a planned road expansion nearby, easements, encroachments, permit violations — these belong here if you know about them.

The Liability Risk Most Sellers Don’t Take Seriously Enough

Here’s the part of the SPDS conversation that matters most: the standard is what you know, not what was discovered in the inspection.

Arizona sellers are required to disclose known material defects. They are not required to investigate, inspect, or test for problems they have no knowledge of. But the “I didn’t know” defense only works if you genuinely didn’t know — and Arizona courts have consistently found that deliberate avoidance doesn’t protect you. If you received a prior inspection report showing a drainage issue and never repaired it, pretending you had no knowledge is not a viable legal position.

Failing to disclose a known material defect exposes you to civil liability for fraud, misrepresentation, or concealment. Arizona courts have awarded compensatory damages — the cost to repair the undisclosed defect — plus, in cases involving intentional concealment, punitive damages on top. The statute of limitations for fraud-based real estate claims in Arizona is generally three years from the point when the buyer discovered or reasonably should have discovered the issue. That means your liability does not end at closing. A buyer who discovers undisclosed water damage during a renovation two years after purchase can still come back to you.

The practical protection is straightforward: disclose what you know, completely and accurately. Answer the questions honestly. Add notes where a yes/no answer needs context. If you’re uncertain whether something is material, ask your agent or consult a real estate attorney before closing your eyes to it.

One practical point on timing: the standard AAR purchase contract gives you 3 days to deliver the SPDS after contract acceptance. That sounds like plenty of time, but in practice, trying to fill out a 10-page disclosure form while simultaneously responding to inspection requests, lender conditions, and buyer questions is stressful and increases the risk of sloppy answers. Every listing client I work with completes the SPDS during the pre-listing phase — before the home ever hits the market. That gives you the time to be thorough, review it carefully, and go into contract with confidence that your disclosure documentation is solid.

If you’re preparing to list in Scottsdale, Chandler, or Tempe, the SPDS is one of three pre-listing documents I walk every seller through before we set a price or a go-live date. If you haven’t looked at what you’d net from a sale yet, here’s a full line-item breakdown of seller costs and net proceeds in Scottsdale. And if you’re still deciding whether now is the right time to list, here’s what the 2026 market data actually shows.

Ready to walk through the SPDS and your full pre-listing checklist before you make any decisions? That conversation is free — and it’ll tell you exactly where you stand. Schedule a pre-listing consultation at thepropertyprofessor.blog or call/text me at 480-725-4658.

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Frequently Asked Questions

What is the SPDS in Arizona?

The SPDS — Seller’s Property Disclosure Statement — is a 10-page AAR form that Arizona sellers must complete as part of the residential purchase transaction. It covers structural and mechanical systems, environmental hazards, property history, utilities, HOA details, and any other known material facts. The completed SPDS must be delivered to the buyer within 3 days of contract acceptance under the standard AAR purchase contract.

What happens if a seller doesn’t disclose something on the SPDS in Arizona?

Failing to disclose a known material defect exposes a seller to civil liability for fraud, misrepresentation, or concealment. In serious cases, Arizona courts have awarded punitive damages on top of compensatory damages. The statute of limitations for fraud-based claims is generally three years from when the buyer discovered or should have discovered the issue — so liability doesn’t end at closing.

Do I have to disclose a prior roof leak that has been repaired?

Yes. The SPDS asks about prior water intrusion, roof leaks, and related repairs — including issues that have since been fixed. You disclose what you know, including past events and completed repairs. What creates liability is failing to disclose when you knew.

When is the SPDS due in an Arizona home sale?

Under the standard AAR Residential Resale Real Estate Purchase Contract, the seller must deliver the completed SPDS to the buyer within 3 days of contract acceptance. The buyer then has 5 days to review it and either accept, cancel, or request repairs or concessions. Sellers who complete the SPDS before listing eliminate timeline pressure and have time to review it carefully.

Does Arizona require sellers to disclose deaths that occurred in the home?

Arizona law does not require sellers to disclose deaths that occurred in the home unless the buyer specifically asks in writing. Arizona statute ARS 32-2156 limits this requirement — natural deaths are generally not a mandatory disclosure item. Sellers should confirm current requirements with their agent or a real estate attorney for any specific circumstances.

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About Dr. Kevin Shufford
Dr. Kevin Shufford holds a PhD in Communication and is a professor who teaches how to have healthy relationships — skills he brings directly to his real estate practice. As a licensed real estate agent and mortgage loan officer serving the Phoenix metro and Southern California markets, Kevin operates as The Property Professor under Real Broker and One Real Mortgage. He specializes in helping first-time buyers, move-up buyers, and higher-income professionals navigate the buying and lending process with confidence. Connect with Kevin at thepropertyprofessor.blog or call 480-725-4658.