The Seller’s Property Disclosure Statement
The residential real estate market in Phoenix and nationwide is typically the busiest in the spring and early summer. If you are in the market to either buy or sell your home, be prepared to review and sign a large number of documents during the process. One important document that the seller typically completes as part of a residential sale is the Seller’s Property Disclosure Statement or SPDS.
The SPDS is a seven-page document that provides information to a prospective buyer about a property’s physical condition. Sellers are legally required to report all known material facts and defects about the property, both past and present, including roof leaks and repairs, issues with the plumbing or electrical systems, pest infestations, mold issues, etc.
Often, sellers are afraid to disclose problems with their houses for fear that doing so will scare away buyers. But failing to disclose known material information about a property could land the seller in legal hot water. The SPDS is an opportunity for the seller to reveal any and all issues that may negatively impact the value or livability of a home. Doing so protects the seller from future legal action. For the buyer, the SPDS aids in making an informed decision about buying the property. And many of the possible issues disclosed by the SPDS can be repaired inexpensively, especially when compared to the cost of litigation that may result from a failure to disclose an item that should be disclosed.
If you are the seller, your best bet is to err on the side of caution and disclose all known material facts about the property in the SPDS. If you are a buyer, make sure you carefully review the SPDS during the buying process and ask the seller any questions you may have so that you truly are making an informed decision about the property you are buying. Doing so will provide peace of mind. At Hymson Goldstein Pantiliat & Lohr, PLLC, Our Business is Your Peace of Mind®.
Written by Attorney Lori Brown.
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