Selling a home in Arizona requires more than just a handshake and a “For Sale” sign; it requires a serious paper trail of honesty. If you are preparing to sell your property in Central Phoenix—whether it’s a bungalow in Willo, a mid-century modern in Encanto, or a loft downtown—you need to understand your disclosure obligations.

In the world of real estate, a “material fact” is defined as any information that would affect a reasonable buyer’s decision to purchase or the price they are willing to pay. In our specific market, where 1940s builds sit right next to modern infill projects, disclosures are often more complex than they are in the newer suburbs.

The most important thing to remember is that proper disclosure actually protects you. Many sellers worry that revealing flaws will kill the deal. In reality, being upfront prevents post-closing lawsuits. A buyer can usually handle a known issue; they rarely forgive a surprise one.

The Arizona SPDS: Your Main Defense Line

The centerpiece of your disclosure obligation is the Seller’s Property Disclosure Statement, affectionately known by local agents as the “SPDS” or “spuds.” This is a standard form provided by the Arizona Association of REALTORS® designed to prompt your memory regarding every aspect of the home.

In a standard contract, you typically need to deliver this completed form to the buyer within three to five days of contract acceptance. It’s best to have this filled out before you even list, so you aren’t rushing through it while trying to pack boxes.

The SPDS is comprehensive, usually running 7–9 pages, and covers six main categories:

  • Ownership and Property: Title issues, easements, and legal access.
  • Building and Safety: Structural components, roof, and pest history.
  • Utilities: What services are connected and who provides them.
  • Environmental: Noise, odors, soil issues, and airport flight paths.
  • Sewer/Wastewater: Whether you are on public sewer or a septic system.
  • Other Conditions: A catch-all for anything else relevant.

The golden rule for the SPDS is simple: If in doubt, disclose. If you are wondering whether you should mention that the roof leaked during a monsoon four years ago (even though you fixed it), the answer is yes. It is always better to over-disclose and provide receipts for the repair than to have a buyer discover a water stain later and accuse you of hiding it.

Critical Disclosures for Central Phoenix Homes

This is where selling in the central corridor differs from selling a newer tract home in the suburbs. Our homes have character, but that character often comes with “historic” mechanical systems and unique local regulations.

Historic Districts and Overlays

If your home is in a designated neighborhood like Roosevelt, Willo, or Encanto, it likely sits within a Historic Preservation Overlay (HPO). You must disclose this status. Buyers need to know that they cannot simply tear down the carport or change the windows without approval from the Historic Preservation Office. This affects both their future renovation plans and their potential tax status.

Age-Related Electrical and Plumbing

Many homes in our area were built in the 1940s and 50s. If you haven’t fully updated the systems, you need to be transparent about what’s behind the walls.

  • Wiring: Look out for cloth wiring or ungrounded two-prong outlets. These are common in original builds and can be insurance hurdles for buyers.
  • Plumbing: Be specific about your pipes. Original galvanized steel pipes are prone to rust and low water pressure. Even more critical is the sewer line—many mid-century homes used “Orangeburg” piping (a tar-paper composite) or clay pipes, which are notorious for collapsing or being invaded by tree roots.

Environmental Factors

Central Phoenix is vibrant, but it’s also noisy. Depending on where you are located relative to Sky Harbor International Airport, you may be in a specific flight path or noise zone that must be disclosed. Similarly, proximity to the I-10 or the 51 freeway is a material fact regarding noise levels.

Flood Irrigation

One of the charms of our older neighborhoods is the lush, green lawns fed by flood irrigation. If your property has irrigation rights, you should disclose the watering schedule and the associated costs. While locals love it, a transplant from out of state might view a flooded backyard as a disaster if they don’t understand how the system works.

Mandatory State and Federal Requirements

Beyond the standard SPDS, there are a few non-negotiable forms you need to be aware of, especially given the age of our housing stock.

Lead-Based Paint Disclosure

If your home was built before 1978—which applies to the vast majority of Central Phoenix—federal law mandates that you provide a Lead-Based Paint Disclosure. You must give the buyer an EPA-approved pamphlet and disclose any known records of lead paint on the property. Even if you’ve painted over it a dozen times, the form is mandatory.

Insurance Claims History (CLUE)

Buyers will almost always run a CLUE report (Comprehensive Loss Underwriting Exchange) to see the insurance history of the home. You should be upfront about any claims filed in the last five years. If you filed a claim for roof damage after the storms in 2024, put it on the table. If the CLUE report shows a claim you “forgot” to mention, it looks suspicious.

Affidavit of Disclosure

This is less common in the city core but can pop up. If your property is in an unincorporated area (often called a “county island”) and not part of a formal subdivision, you may be required to record an Affidavit of Disclosure. This is rarer in Central Phoenix but can apply to unique pockets or edge lots.

Condos, Townhomes, and HOAs

Central Phoenix has seen a boom in condo living, from vintage mid-rise towers to modern lofts. If you are selling a unit in an HOA, the paperwork load increases.

You are responsible for disclosing the financial health of the HOA. This includes providing access to reserve studies (which show if the building has enough money for big repairs) and disclosing any pending special assessments. If the HOA is planning to replace the elevators next year and charge every owner $10,000, the buyer has a right to know.

You also need to be clear about the CC&Rs (Covenants, Conditions, and Restrictions). These rules might limit the buyer’s ability to rent the unit out or bring their three large dogs. Finally, clarify the transfer fees. Buyers and sellers often argue over who pays the disclosure fees versus the transfer fees, so checking the contract defaults is smart.

The “As-Is” Sale Myth

There is a dangerous misconception that selling a home “as-is” allows a seller to opt out of disclosures. This is completely false.

Selling “as-is” simply means you are stating upfront that you will not make any repairs. It does not mean you can hide known latent defects.

For example, if you know the master shower pan leaks into the crawlspace every time it’s used, you must disclose that fact, even if you are selling the home as a “fixer-upper.” If you fail to disclose a known defect and the buyer discovers it later, the “as-is” clause will not protect you from liability for fraud or misrepresentation.

What You Don’t Have to Disclose (Stigmatized Property)

Arizona law offers some specific protections for sellers regarding “stigmatized” properties. You are generally not required to disclose information that might psychologically impact a buyer but doesn’t physically affect the property.

Under Arizona Statute (A.R.S. § 32-2156), you typically do not have a legal duty to disclose:

  • That a natural death, suicide, homicide, or felony occurred on the property.
  • That a previous occupant had HIV/AIDS or other diseases not transmitted through housing.
  • The presence of sex offenders in the vicinity (it is the buyer’s responsibility to check the sex offender registry).

However, if a buyer asks you a direct question about these issues, you cannot lie. You can choose to answer truthfully or state that you are sticking to the legal disclosure requirements.

Tips for Completing Your Disclosures

Getting this paperwork right is one of the best ways to ensure a smooth closing.

  • Be Honest: “I don’t know” is a perfectly acceptable answer if it is the truth. However, checking “No” means you are certain an issue never happened. If you aren’t sure, “Unknown” is safer than a false “No.”
  • Gather Your Receipts: Did you replace the A/C unit in 2021? Have the warranty and invoice ready. It turns a disclosure (“The A/C was replaced”) into a selling point (“The A/C is new and under warranty”).
  • Work With Your Agent: Your real estate agent cannot fill out the SPDS for you—that is a liability no-no. However, they can explain what the questions mean and help you understand what constitutes a material fact in our local market.

Frequently Asked Questions

Do I have to fix the defects I disclose in Arizona?

No, disclosing a defect does not automatically obligate you to fix it. Disclosure notifies the buyer of the condition so they can make an informed offer. Repairs are a matter of negotiation; you can choose to sell the home with the defect, though the buyer may ask for a lower price or credit in return.

What happens if I forget to disclose something I genuinely didn’t know about?

Arizona law generally holds sellers liable for known defects. If a pipe bursts two weeks after closing and you genuinely had no knowledge of plumbing issues (and no evidence exists that you tried to hide it), you are typically not liable. This is why answering “I don’t know” is better than guessing.

Do I have to disclose a death in the home in Phoenix?

No, under Arizona law, you are not required to volunteer information regarding a death, suicide, or felony that occurred on the property. However, you cannot knowingly make false statements if specifically asked, so consult your agent on how to handle direct inquiries.

Does the seller or buyer pay for the HOA disclosure fees?

In a standard Arizona real estate contract, the seller typically pays for the HOA disclosure statement fees, as this is information regarding the seller’s account and community. However, other transfer fees and capital improvement fees can be negotiated between the buyer and seller.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Real estate laws and contracts are subject to change. For specific legal questions regarding your property or disclosure obligations, please consult with a qualified real estate attorney in Arizona.