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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


Can a seller disclose that senior citizens live next door?

July 2, 2017

Can a seller disclose to a buyer that senior citizens live next door?   Question:  We want to sell our Glendale home. Our next-door neighbor has an assisted living facility for six to eight senior citizens. My understanding is that the Fair Housing Act does not prohibit discrimination based on…


Correct Answer for Agents if Asked About Sex Offenders

May 28, 2017

Correct Answer for Real Estate Agents if Asked About Sex Offenders   Question:  I know that there was a major lawsuit involving non-disclosure of a sex offender in the Silverleaf community of north Scottsdale. I own a small brokerage firm with several agents. I tell my agents that, if they…


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