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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


If Seller Lies, Can Buyer Cancel a Purchase Contract Before Closing?

November 29, 2017

If Seller Lies, Can Buyer Cancel a Purchase Contract Before Closing?   Question: Last month we signed a contract with $10,000 earnest money to purchase a home in Sedona. In the Seller’s Property Disclosure Statement (“SPDS”), the seller said that there had never been any termites, or any termite treatment. During…


Reducing Claim to $3,500 – "Judge Judy" Small Claims Court

November 13, 2017

Reducing Claim to $3,500 – “Judge Judy” Small Claims Court   Question: When we purchased our home in Apache Junction six months ago, the seller said in the Seller’s Property Disclosure Statement (“SPDS”) that there had been no roof problems. After the first monsoon rain we had significant water damage in our master…


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