DISCLOSURE ISSUES

Disclosure Issues

In both commercial and residential real estate sales, proper disclosure by the seller of defects in the property is essential. Many non-disclosure problems can be avoided by the usage of forms such as the Arizona Association of Realtors’ Seller Property Disclosure Statement (“SPDS”), developed for commercial, vacant land, and residential transactions.

If there is a wrongful failure by the seller to disclose a defect in of real property, the buyer may have a fraud claim which could warrant punitive damages. For fraudulent non-disclosures, e.g., inadequate roof repairs, the statute of limitations is generally three years.

Frequently Asked Questions about Disclosure Issues

RELATED ARTICLES

Fraud

Statute of Limitations Regarding Liability of Sellers and Brokers

November 29, 2020

Question: Your column recently discussed the liability of the seller for failure to disclose to the buyer that the City of Chandler had not approved the completion of the garage. In another column you discussed the liability of the seller and the real estate broker for failing to disclose to…

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Garage

Confirm Not Only Permit Issued But Construction Completed

June 21, 2020

Question: When we purchased our East Valley home, the Seller’s Property Disclosure Statement (“SPDS”), line 150, said that there was a permit from the City of Chandler for the construction of the 2,000-square-foot detached garage. The SPDS, line 155, said that the detached garage had been “completed.” We want to…

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