Selling your Arizona home? Be prepared to disclose information that will help a potential buyer make an informed decision as to whether to purchase your property or not.
It is crucial to comply with this requirement. If a buyer discovers any defects that you were aware of but didn’t disclose, there may be legal repercussions.
At this point, you may be asking how long are you liable after selling a house in Arizona? Read on to know the answer to this and learn more about seller obligations on disclosure.
Understanding Seller Liability
In Arizona, sellers are obligated by law to disclose all known facts about their home for sale that might negatively affect its value.
The Arizona Association of Realtors has a standard form that must be completed by sellers – Residential Seller’s Property Disclosure Statement (SPDS). Sellers are required to provide complete and accurate information about their property’s condition through this legal document.
If you state false information on the disclosure, the buyer may take legal action against you and seek damages for undisclosed defects.
Legal Framework in Arizona
The Arizona legislature has outlined particular situations that legally obligate sellers to provide disclosures to potential buyers:
- Swimming pool barrier disclosure (Ariz. Rev. Stat. § 36-1681(E))
- Condo disclosure information (Ariz. Rev. Stat. § 33-1806 & 33-1260)
- Notice of soil remediation (Ariz. Rev. Stat. § 33-434.01 & 49-701.02)
- Disclosure affidavit for land in unincorporated areas (Ariz. Rev. Stat. § 33-422)
- Military airport disclosure (Ariz. Rev. Stat. § 28-8484)
These legal requirements ensure transparency and help the buyer make an informed decision when purchasing a home in Arizona.
In addition, Arizona real estate practices require further disclosures in certain circumstances.
For instance, the standard real estate contract in the state requires the seller to provide the buyer with a copy of the Comprehensive Loss Underwriting Exchange (CLUE) report.
This report shows a five-year history of insurance claims filed on the property.
Disclosure Obligations
State laws require home sellers to disclose crucial information like known defects, past repairs, and water damage to potential buyers before they make an offer.
Your sales contract should also state that you have disclosed everything that you were aware of and enumerate the steps you took to uncover possible flaws in your Arizona home before the sale.
Consequences of Non-Disclosure
Any violation of Arizona’s disclosure law through misrepresentation or non-disclosure of the required information can result in the buyer pursuing legal action against you. If the buyer is successful in such a lawsuit, they may be awarded substantial monetary damages.
In some cases, a court might void the contract and return the property or money back to the original parties.
Role of Real Estate Agents
Under the Arizona Commissioner’s Rule R4-28-1101(B), the seller’s real estate agent must disclose to home buyers in writing any information that “materially or adversely affects the consideration to be paid by any party to the transaction, including…Any material defect existing in the property being transferred.”
Your real estate agent is obligated to share information with homebuyers about any unseen or non-obvious problem about your property that you have discussed with them or if the agent notices these issues on their own.
Common Disclosures in Arizona
The Residential Seller’s Property Disclosure Statement contains six sections about different aspects of a property. These sections include:
- 1. Ownership and Property
- 2. Building and Safety Information
- 3. Utilities
- 4. Environmental Information
- 5. Sewer / Waste Water Treatment
- 6. Other Conditions and Factors
Let’s discuss the common disclosures Arizona home sellers are required to indicate on their SPDS form.
If your Arizona home has been treated for termite damage, you should disclose this to the buyers.
You are required to let the buyer know about modifications made to your AZ home without a permit.
If you’re selling a home in Arizona built before 1978, you are required under federal law to disclose any known lead-based paint used on your property.
Other issues involving hazardous materials, such as radon gas and asbestos, should be disclosed to the buyer.
Buyers should also be informed about any leak, damaged roof, or any signs of dampness in your house that you’re aware of.
If your home is located in a flood zone area or if there are any loud noises in your neighborhood that may influence the buyer’s decision to purchase your AZ home, these should be disclosed to them as we
It is important to divulge any legal issue that could cloud the title, such as when the property is a short sale and needs third-party approval or if it is subject to approval by the estate or probate buyers.
If there is a homeowner’s association or restrictive covenants in place in your neighborhood, this should be disclosed upfront.
For example, Camelback Del Este has a homeowner’s association with little to no HOA fees. This is an important information that can entice interested buyers who value a community that is well-kept and secure.
Arizona law requires sellers to divulge if the property is located within “territory in the vicinity of a military airport” or “territory in the vicinity of an ancillary military facility”.
This cautions potential buyers as to whether the house for sale is located within a high noise contour or an accident potential zone.
Mitigating Liability Risks
These are some important steps to avoid any legal issues:
Before you sell your AZ home, conduct a pre-sale home inspection. It will allow you to identify and address issues with your property. Doing this will also help build trust with potential buyers.
To avoid problems in your home disclosure statement, it is imperative that you reveal everything you know, even those that you think are just minor issues.
If you’re not certain about what you need to disclose, seek help from a real estate attorney. They are familiar with local laws and practices and can help you avoid any legal issues.
Document everything, including records of repairs, renovations, and maintenance done on your Arizona property for sale. These are proof that you’ve dealt with known issues.
Conclusion
So, how long are you liable after selling a house? Statutes of limitations are typically two to 10 years after closing.
As an Arizona home seller, you can limit your liability by disclosing everything you know and keeping records of what you have disclosed.
If you need help selling your home, give us a call or send us a text today at
(480) 888-5272 or send us an email at cc@ccrealestate.com to schedule an appointment.
Frequently Asked Questions
Statutes of limitations are typically two to 10 years after closing.
Yes, that’s why it’s imperative that the seller discloses everything they know about the property on the Residential Seller’s Property Disclosure Statement (SPDS).
Under the Arizona Commissioner’s Rule R4-28-1101(B), your real estate agent is required to disclose information with homebuyers about any unseen or non-obvious problem about your property that you have discussed with them or if the agent notices these issues on their own.
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