In Arizona, sellers are required to tell a buyer any “material” facts about a property. A material fact is any information that could affect a buyer’s decision to buy a property. Or affect the amount the buyer would offer for the property. Learn more about Seller Property Disclosure Statements – What Must A Seller Disclose in Phoenix, Az here.
What must a seller disclose in Arizona? The Arizona Association of Realtors has a Residential Seller Disclosure Advisory for sellers to complete. The seller completes the disclosure document for the buyer. It is important for sellers to tell a buyer what they know about the property.
Arizona’s Seller Disclosure Form has 5 sections. The sections have boxes for yes or no. This makes the form easy for the seller to complete. There are also spaces for the seller to add any other necessary information on several lines.
- ? What is the purpose of the seller’s disclosure statement?
- ❓ How Do I Get A Seller Disclosure?
- ?️ Should I Disclose Building and Safety Information?
- ⛔ Can A Seller Refuse to Provide Seller Property Disclosures in Arizona?
- ? Does a Buyer have Recourse if A Seller Lies?
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- ❓ Does a Trustee, Personal Representative, Conservator, or Guardian Need to Complete the Seller property disclosure in Arizona?
- ?️ Is a Lead-Based Paint Disclosure Part of a Seller property disclosure in Arizona?
- ? What is an Important or Material Fact for Seller Property Disclosure Statements in Arizona?
- ? What Does Not Have to Be Disclosed?
- ?I am an FSBO (For Sale By Owner)
- Phoenix Homes on the Market in the last 7 days $250,000 – $350,000
? What is the purpose of the seller’s disclosure statement?
The purpose of the seller’s disclosure is to inform a buyer about the condition of the property. Also, this informs the buyer of any history of plumbing or electrical issues. This also allows the buyer to schedule any inspections. The form also informs the buyer of any structural issues they may not readily notice. Sellers should not hide any home-related information. A seller could be sued by a buyer if material information is omitted. Sellers sign that to the best of their knowledge the statement is true.
❓ How Do I Get A Seller Disclosure?
This document should be provided by any home seller to the buyer. If you are using a real estate agent, they typically follow up with the listing agent to make sure this disclosure is provided. In Arizona, there are specific periods after contract acceptance for the disclosure to be provided to the buyer. There is a place on the disclosure statement for the buyer to initial and sign that they have received a copy of the disclosure. This is only an acknowledgment of receipt. By signing the document, the buyer is not stating they agree with the content. This just acknowledges receipt of the disclosure.
What if I Can’t Get a Seller Disclosure?
In this section, sellers provide the names of the legal owners of the property. Sellers note if the property is in a Home Owner’s Association (HOA). Also, sellers state whether there are any assessments the seller is aware of. This section covers general information a seller should know. This is information a buyer would want to know to decide to buy a property. Most information is straight forward and easy for sellers to answer.
?️ Should I Disclose Building and Safety Information?
This section addresses issues with the property. Additionally, this section also addresses termites, plumbing and electrical issues. Aso, pool issues are also addressed. Buyers who have lived in a property for many years may not recall every visit by a plumber or electrician. However, they should recall anything that was a major issue. Sellers are not expected to disclose routine maintenance of their property. Here buyers are looking for anything unusual or needing further evaluation.
? What are the Utilities – for the Property?
A seller must identify what utility services are available at the property. Also, this includes electricity, gas water, cable, or other utility providers. This helps the buyer find the service providers. Additionally, buyers may prefer one service provider over another, i.e. in Phoenix SRP (Salt River Project) versus APS (Arizona Public Service)
Sellers must disclose anything they know about environmental issues on the property. This includes landfills or settling soil. Also, sellers should address any known issues such as soil settling, landfills, etc.
? Is there a Sewer/Wastewater Treatment Plant?
Sellers are required to tell a buyer whether the property is connected to a sewer or a septic system. Within the city limits properties are usually connected to a sewer system, but not always. Also, it is not unusual for homes in rural areas to be on a septic system.
⛔ Can A Seller Refuse to Provide Seller Property Disclosures in Arizona?
Some Sellers will decline to complete a Seller Property Disclosure Statement. Sometimes they state that they have never lived in the home. The state of Arizona in this document is not asking if someone has lived in a property. They are asking what the seller knows about the property.
A seller who rented a house out for 5 years would be aware of repair items. Additionally, the seller would have paid for those repairs. Again, not living in a property does not mean the owner is not aware of issues or repairs to the property. We often see this with investor properties. The investor bought a property, went in and repaired, or updated the property. Again, they may not have lived in the house, but they do know what has been updated. They also know if they found such issues as mold, electrical, or plumbing issues.
Additionally, the question is not whether the owner lived in the property. The state of Arizona wants buyers to have the full benefit of what the seller knows about the property. Additionally, this information could affect the amount of money a buyer is willing to pay for the property. This information could also affect whether the buyer wants to cancel the contract and not go ahead with the sale.
You may also be interested in learning about Seller Closing costs in the Phoenix, Az area.
? Does a Buyer have Recourse if A Seller Lies?
Sellers who fail to disclose could find themselves with legal action from a buyer. If a buyer finds an issue that the seller should have told them about, there are legal remedies open to them. It is not unusual for neighbors to be aware of house issues. Therefore, this information could be passed to the buyer.
❓ Does a Trustee, Personal Representative, Conservator, or Guardian Need to Complete the Seller property disclosure in Arizona?
In Arizona, the seller of the property is required to disclose what they know about the property. Someone who is representing the estate typically has not lived in the property and has little, if any knowledge of the questions in the disclosure. The representative can simply write on the Seller Disclosures that this is an estate or they are a Conservator and do have any knowledge of the property. As always, consult with a real estate attorney to completely understand what applies to your situation. You do not want to “guess” at information. A buyer needs to rely on the information that is provided in the disclosure. If they see the person selling the property is unable to provide any information, the buyer needs to ensure they complete any inspections.
?️ Is a Lead-Based Paint Disclosure Part of a Seller property disclosure in Arizona?
Sellers are required by Federal law to disclosure to buyers if the home was built before 1978. Homes built prior to 1978 could contain lead-based paint. It is then up to the buyer to do any lead-based testing. The seller is only required to disclose there “may” be lead-based paint in the home.
See more about – Seller Property Disclosure Statements – What Must A Seller Disclose in Phoenix, Az
? What is an Important or Material Fact for Seller Property Disclosure Statements in Arizona?
Sellers are required to tell a buyer important or material issues. Additionally, a material issue is one that may have an impact on the value of the property. Also, would this information affect the buyer’s decision to buy the property?
Additionally, would it affect the price offered? However, we do not know what is “material” to a buyer. Therefore, sellers are asked to tell the buyer anything that could affect the buyer’s decision to move ahead with the sale.
Typically, a scratch on the wall or a crack in a tile is not “material” facts on the house condition. Sellers should disclose things a buyer can not see. This includes prior repairs or damage, i.e. fire damage, roof damage, and repair from a storm, a prior slab leak, etc.
? What Does Not Have to Be Disclosed?
A seller is not required to tell a buyer that a sex offender is living in the area. However, many sellers may not know if there is an offender in the area. Also, buyers can look up this information by going to the Arizona Department of Safety Sex Offender Database. A Seller is required to honestly answer questions from a buyer. The answer may be “I don’t know”. But if the seller has information they do need to answer truthfully.
Sellers are not required to tell a buyer about a death on the property. A natural death, murder, or suicide is not required to be disclosed. However, in many older homes years ago it was typical for the homeowner to die at home. Therefore some homes on the east coast or the Midwest could have had multiple deaths due to natural causes. However, if a buyer asks the question, and the seller knows the answer, they are required to answer.
Also, A seller is not required to tell a buyer whether a felony was committed on the property.
A seller is not required to tell whether the house was owned by someone with a disease. This includes AIDS, HIV, or any other disease that could be transmitted by occupancy in a property.
Sellers are required to answer a question honestly or state they will not answer. A seller cannot lie to the buyer. Also, if the seller truly does not know an answer of “I don’t know” is acceptable. Remember, the sellers are to reveal what they know. But, they are not expected to know every bit of history about the house. However, the seller is expected to answer truthfully.
?I am an FSBO (For Sale By Owner)
A seller who is selling his/her own property in Arizona is also required to disclose to buyers. A Seller must tell a buyer what they know about a property without a buyer having to ask. Additionally, a homeowner selling their own home is not exempt from disclosure. However, sellers in a private sale are often unaware of the legal requirements.
You may also be interested in reading about the Instant Buyers (iBuyers) in the Phoenix metro area.
Sellers need to give full disclosure of any information about their property. This is because some information could affect a buyer’s decision to buy the property. Also, they are required to reveal anything that could affect the price a buyer is willing to pay for the property.
Additionally, buyers should get a home inspection. Buyers have 10 days to complete any inspections after contract acceptance. Also, these are typically a home inspection, termite inspection, pool inspection, and roof inspection. And, buyers should check the seller disclosures before completing their inspection. Buyers should focus on earlier repairs. We hope you enjoyed reading about Seller property disclosure in Arizona.
Phoenix Homes on the Market in the last 7 days $250,000 – $350,000
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Seller Property Disclosure Statements – What Must A Seller Disclose in Phoenix, Az