DocDraft Logo

Property Disclosure Statement Guide: What Landlords, Tenants, and Investors Need to Know

Learn everything about property disclosure statements, including legal requirements for sellers, what tenants should know when their rental is being sold, and how investors can protect themselves during transactions.

Introduction

A Property Disclosure Statement is a legally significant document that requires property sellers to reveal known material defects and issues with a property. Whether you're a tenant whose rental home is being sold, a landlord selling your rental property, or a real estate investor managing multiple properties, understanding disclosure requirements is crucial to protect your interests and avoid potential legal disputes. This guide explains what property disclosure statements entail, who needs to complete them, what must be disclosed, and how these documents affect different parties in real estate transactions.

Key Things to Know

  1. 1

    Property disclosure requirements vary by state, so always check your local laws or consult with a real estate attorney to understand specific obligations in your area.

  2. 2

    Disclosure statements typically cover known issues only—sellers generally aren't required to hire inspectors to discover unknown problems.

  3. 3

    For landlords selling rental properties, tenant-reported maintenance issues should be included in your disclosures, even if you haven't personally verified them.

  4. 4

    Tenants' lease rights are generally protected when a rental property is sold; the new owner typically must honor existing lease terms.

  5. 5

    Real estate investors should maintain detailed property records and consider pre-listing inspections to facilitate accurate disclosures.

  6. 6

    Selling a property 'as-is' does not exempt sellers from disclosure requirements—you must still disclose known material defects.

  7. 7

    The consequences of inadequate disclosure can include lawsuits, monetary damages, rescission of the sale, and significant legal expenses.

  8. 8

    When in doubt about whether to disclose something, the safer legal approach is to include it in your disclosure statement.

Key Decisions

Individual Landlord Selling a Rental Property

Real Estate Investor with Multiple Rental Properties

Tenant Living in a Property Being Sold

Customize your Property Disclosure Statement Template with DocDraft

PROPERTY DISCLOSURE STATEMENT

PROPERTY IDENTIFICATION AND OWNERSHIP INFORMATION

Property Address: [PROPERTY ADDRESS]

Legal Description: [LEGAL DESCRIPTION AS IT APPEARS ON DEED/TITLE]

Current Owner(s):

  • Name(s): [OWNER NAME(S)]
  • Ownership Type: [INDIVIDUAL/JOINT TENANTS/TENANTS IN COMMON/TRUST/OTHER]
  • Ownership Period: From [MONTH/YEAR] to present

Property Type: [SINGLE-FAMILY/MULTI-FAMILY/CONDOMINIUM/COMMERCIAL/OTHER]

INTRODUCTION AND PURPOSE

This Property Disclosure Statement ("Disclosure") is provided by the Seller(s) to prospective Buyer(s) regarding the real property identified above (the "Property"). This Disclosure is intended to satisfy the Seller's obligation to disclose known material defects about the Property as required under applicable state and federal laws. The information contained in this Disclosure is based on the Seller's actual knowledge and belief as of the date signed below.

DISCLAIMER

THIS DISCLOSURE IS NOT A WARRANTY OR GUARANTEE OF ANY KIND BY THE SELLER OR ANY AGENT REPRESENTING THE SELLER. THIS DISCLOSURE IS NOT A SUBSTITUTE FOR ANY INSPECTIONS, TESTS, OR WARRANTIES THAT THE BUYER MAY WISH TO OBTAIN. INDEPENDENT PROFESSIONAL INSPECTIONS OF THE PROPERTY ARE STRONGLY RECOMMENDED. THE REPRESENTATIONS IN THIS DISCLOSURE ARE MADE BY THE SELLER AND NOT BY ANY AGENT REPRESENTING THE SELLER.

INSTRUCTIONS TO SELLER

Please complete this form by answering all questions to the best of your knowledge and belief. If you do not have actual knowledge of a particular matter, please indicate "Unknown" or "N/A" (Not Applicable). If you need additional space for explanations, please use the "Additional Comments" section at the end of this document or attach additional pages as needed, clearly identifying the section and item number being explained.

STRUCTURAL COMPONENTS

1. Foundation

a. Are you aware of any past or present problems with the foundation of the Property? □ Yes □ No □ Unknown

If yes, please explain: _______________________________________________________

b. Has the foundation ever been repaired? □ Yes □ No □ Unknown

If yes, when and describe repairs: _____________________________________________

c. Are there any known foundation cracks, settling, or shifting? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

d. Has there been any water intrusion in the basement or crawl space? □ Yes □ No □ Unknown □ Not Applicable

If yes, please describe: _____________________________________________________

2. Roof

a. Age of current roof: _____ years □ Unknown

b. Has the roof ever leaked during your ownership? □ Yes □ No □ Unknown

If yes, please describe location, extent, and repair history: _________________________

c. Has the roof been repaired or replaced during your ownership? □ Yes □ No □ Unknown

If yes, please provide date and nature of repair/replacement: ______________________

d. Are there any existing roof warranties that may transfer to the buyer? □ Yes □ No □ Unknown

If yes, please provide details: ________________________________________________

3. Walls and Ceilings

a. Are you aware of any past or present problems with the walls or ceilings? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

b. Are there any known water stains or water damage to any walls or ceilings? □ Yes □ No □ Unknown

If yes, please describe location and repair history: _______________________________

c. Are there any known structural issues with the walls? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

d. Are there any known cracks in the walls or ceilings? □ Yes □ No □ Unknown

If yes, please describe location and size: _______________________________________

4. Windows and Doors

a. Are there any windows or doors that are not operational or have broken seals? □ Yes □ No □ Unknown

If yes, please identify: ______________________________________________________

b. Are there any windows or doors with known defects or damage? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

c. Have any windows or doors been replaced during your ownership? □ Yes □ No □ Unknown

If yes, please provide dates and details: ________________________________________

d. Are there any windows or doors with warranties that may transfer to the buyer? □ Yes □ No □ Unknown

If yes, please provide details: ________________________________________________

SYSTEMS AND UTILITIES

5. Electrical System

a. Age of electrical system: _____ years □ Unknown

b. Type of wiring: □ Copper □ Aluminum □ Knob & Tube □ Other: ________ □ Unknown

c. Are you aware of any problems with the electrical system? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

d. Are there any known non-working outlets, fixtures, or switches? □ Yes □ No □ Unknown

If yes, please identify locations: ______________________________________________

e. Has the electrical system been modified or updated during your ownership? □ Yes □ No □ Unknown

If yes, please provide dates and details: ________________________________________

f. Are you aware of any electrical code violations? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

6. Plumbing System

a. Type of supply pipes: □ Copper □ PEX □ Galvanized □ PVC/CPVC □ Other: ________ □ Unknown

b. Type of drain pipes: □ PVC □ Cast Iron □ Lead □ Other: ________ □ Unknown

c. Are you aware of any problems with the plumbing system? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

d. Are there any known leaks, slow drains, or other plumbing issues? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

e. Has the plumbing system been modified or updated during your ownership? □ Yes □ No □ Unknown

If yes, please provide dates and details: ________________________________________

f. Are you aware of any polybutylene piping in the Property? □ Yes □ No □ Unknown

g. Are you aware of any lead piping in the Property? □ Yes □ No □ Unknown

7. HVAC System (Heating, Ventilation, and Air Conditioning)

a. Type of heating system: □ Forced Air □ Radiant □ Heat Pump □ Baseboard □ Other: ________

b. Energy source for heating: □ Gas □ Electric □ Oil □ Propane □ Other: ________

c. Age of heating system: _____ years □ Unknown

d. Type of cooling system: □ Central Air □ Window Units □ Heat Pump □ None □ Other: ________

e. Age of cooling system: _____ years □ Unknown □ Not Applicable

f. Are you aware of any problems with the heating system? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

g. Are you aware of any problems with the cooling system? □ Yes □ No □ Unknown □ Not Applicable

If yes, please describe: _____________________________________________________

h. When was the HVAC system last serviced? Date: ____________ □ Unknown

i. Are there any zones that do not properly heat or cool? □ Yes □ No □ Unknown

If yes, please identify: ______________________________________________________

8. Water and Sewer

a. Water supply: □ Public □ Private Well □ Shared Well □ Other: ________

b. If private or shared well:

  • Age of well: _____ years □ Unknown □ Not Applicable
  • Depth of well: _____ feet □ Unknown □ Not Applicable
  • Has the water been tested? □ Yes □ No □ Unknown □ Not Applicable
  • If yes, date of last test: ____________ Results: ____________

c. Sewage disposal: □ Public Sewer □ Private Septic System □ Other: ________

d. If septic system:

  • Age of septic system: _____ years □ Unknown □ Not Applicable
  • Date of last inspection: ____________ □ Unknown □ Not Applicable
  • Date of last pumping: ____________ □ Unknown □ Not Applicable
  • Location of septic tank: ____________ □ Unknown □ Not Applicable
  • Location of leach field: ____________ □ Unknown □ Not Applicable

e. Are you aware of any problems with the water supply or sewage disposal system? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

ENVIRONMENTAL CONCERNS

9. Water Damage and Flooding

a. Has the Property ever flooded or experienced water intrusion? □ Yes □ No □ Unknown

If yes, please provide dates and details: ________________________________________

b. Is the Property located in a designated flood zone or floodplain? □ Yes □ No □ Unknown

If yes, please provide details: ________________________________________________

c. Are you aware of any drainage or grading problems? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

d. Has flood insurance ever been maintained on the Property? □ Yes □ No □ Unknown

If yes, please provide details: ________________________________________________

10. Mold

a. Are you aware of any past or present mold issues in the Property? □ Yes □ No □ Unknown

If yes, please describe location and extent: _____________________________________

b. Has any mold testing or remediation been performed? □ Yes □ No □ Unknown

If yes, please provide dates and results: ________________________________________

c. Are you aware of any conditions conducive to mold growth (e.g., persistent dampness, humidity)? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

11. Pest Infestations

a. Are you aware of any past or present infestations of termites or other wood-destroying insects? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

b. Has the Property been treated for termites or other wood-destroying insects? □ Yes □ No □ Unknown

If yes, please provide dates and details: ________________________________________

c. Is there a termite bond or warranty in effect? □ Yes □ No □ Unknown

If yes, is it transferable? □ Yes □ No □ Unknown

d. Are you aware of any past or present infestations of rodents, bats, snakes, or other pests? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

12. Hazardous Materials

a. Was the Property built before 1978? □ Yes □ No □ Unknown

b. Are you aware of any lead-based paint in the Property? □ Yes □ No □ Unknown

If yes, please describe location: ______________________________________________

c. Are you aware of any asbestos materials in the Property? □ Yes □ No □ Unknown

If yes, please describe location: ______________________________________________

d. Has the Property been tested for radon? □ Yes □ No □ Unknown

If yes, date of test: ____________ Results: ____________

e. Are you aware of any underground storage tanks on the Property? □ Yes □ No □ Unknown

If yes, please describe location, contents, and age: ______________________________

f. Are you aware of any other hazardous or toxic substances on the Property (e.g., formaldehyde, methane gas, radioactive material, benzene, etc.)? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

13. Soil and Geological Issues

a. Are you aware of any soil problems such as expansive soils, unstable soil conditions, or sinkholes? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

b. Are you aware of any past or present erosion or landslide problems affecting the Property? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

c. Are you aware of any fill soil on the Property? □ Yes □ No □ Unknown

If yes, please describe location and depth: _____________________________________

d. Has a soil or geological evaluation ever been performed on the Property? □ Yes □ No □ Unknown

If yes, please provide dates and results: ________________________________________

LEGAL AND REGULATORY ISSUES

14. Zoning and Building Code Compliance

a. Current zoning classification of the Property: ____________ □ Unknown

b. Are you aware of any zoning violations or non-conforming uses? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

c. Are you aware of any building code violations? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

d. Are you aware of any notices of violation from any government agency? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

15. Permits and Improvements

a. Have any structural additions, alterations, or improvements been made to the Property during your ownership? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

b. Were building permits obtained for all significant improvements or additions? □ Yes □ No □ Unknown □ Not Applicable

If no, please explain: _______________________________________________________

c. Were final inspections and approvals obtained for all permitted work? □ Yes □ No □ Unknown □ Not Applicable

If no, please explain: _______________________________________________________

d. Are there any outstanding building permits that have not received final approval? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

16. Boundary Disputes

a. Are you aware of any boundary disputes, encroachments, or shared features (e.g., driveways, fences) with adjoining landowners? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

b. Has a survey of the Property been conducted during your ownership? □ Yes □ No □ Unknown

If yes, date of survey: ____________

c. Are you aware of any discrepancies between the legal description, property lines, or acreage and the current use of the Property? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

17. Easements and Restrictions

a. Are you aware of any easements, rights-of-way, or similar matters that might affect the Property? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

b. Are you aware of any deed restrictions, covenants, or other restrictions on the use of the Property? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

c. Are you aware of any conservation easements or historical designations affecting the Property? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

18. Homeowners Association (HOA) Information

a. Is the Property part of a homeowners association, condominium association, or other community association? □ Yes □ No □ Unknown

If no, skip to section 19.

b. Name of association: ____________

c. Contact information for association: ____________

d. Current regular assessment/dues: $_____ per □ Month □ Quarter □ Year

e. Are there any pending special assessments? □ Yes □ No □ Unknown

If yes, please provide amount and purpose: _____________________________________

f. Are there any pending or ongoing litigation matters involving the association? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

g. Are you aware of any homeowners association violations or non-compliance issues? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

19. Litigation History

a. Are there any pending lawsuits, foreclosures, or other legal proceedings affecting the Property? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

b. Has there been any litigation or legal proceedings affecting the Property in the past five years? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

c. Have any insurance claims been filed relating to the Property in the past five years? □ Yes □ No □ Unknown

If yes, please provide dates and details: ________________________________________

RENTAL PROPERTY SPECIFICS

(Complete this section only if the Property is currently or was recently tenant-occupied)

20. Tenant Information

a. Is the Property currently tenant-occupied? □ Yes □ No □ Not Applicable

b. If yes, current lease term: From ____________ to ____________

c. Current monthly rent: $____________

d. Security deposit held: $____________

e. Are there any other deposits held? □ Yes □ No

If yes, please describe type and amount: _______________________________________

f. Are you aware of any tenant disputes or issues? □ Yes □ No □ Not Applicable

If yes, please describe: _____________________________________________________

g. Will the Property be delivered vacant to the buyer? □ Yes □ No □ Unknown □ Not Applicable

If no, please explain: _______________________________________________________

21. Rental History

a. How long has the Property been used as a rental? _____ years □ Not Applicable

b. Rental amounts for the past three years:

  • Current year: $_____ per month
  • Previous year: $_____ per month
  • Two years ago: $_____ per month □ Not Applicable

c. Average length of tenant occupancy: _____ □ Not Applicable

d. Average vacancy period between tenants: _____ □ Not Applicable

22. Rent Control Status

a. Is the Property subject to rent control, rent stabilization, or similar local ordinances? □ Yes □ No □ Unknown □ Not Applicable

If yes, please describe current status and restrictions: ____________________________

b. Are there any pending changes to rent control status? □ Yes □ No □ Unknown □ Not Applicable

If yes, please describe: _____________________________________________________

DEATH AND STIGMATIZED PROPERTY

23. Deaths on Property

a. Are you aware of any deaths that have occurred on the Property within the past three years? □ Yes □ No □ Unknown

If yes, please provide details: ________________________________________________

b. Are you aware of any deaths that have occurred on the Property due to violent crimes? □ Yes □ No □ Unknown

If yes, please provide details: ________________________________________________

24. Criminal Activity

a. Are you aware of any illegal drug manufacturing (such as methamphetamine) that has occurred on the Property? □ Yes □ No □ Unknown

If yes, please provide details: ________________________________________________

b. Are you aware of any other criminal activity that has occurred on the Property? □ Yes □ No □ Unknown

If yes, please provide details: ________________________________________________

c. Are you aware of any other events that might stigmatize the Property? □ Yes □ No □ Unknown

If yes, please provide details: ________________________________________________

NEIGHBORHOOD CONDITIONS

25. Nuisances and Noise

a. Are you aware of any neighborhood noise problems or other nuisances? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

b. Are you aware of any landfills, industrial sites, or other environmentally sensitive areas nearby? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

c. Are you aware of any other nuisances, odors, or problematic conditions near the Property? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

26. Nearby Development

a. Are you aware of any planned or ongoing construction or development projects in the immediate area? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

b. Are you aware of any planned or recently approved zoning changes in the area? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

c. Are you aware of any street or utility work planned or currently underway that may affect the Property? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

UTILITY COSTS AND INSURANCE

27. Utility Expense History

a. Average monthly electricity cost: $_____ □ Unknown

b. Average monthly gas/heating cost: $_____ □ Unknown □ Not Applicable

c. Average monthly water/sewer cost: $_____ □ Unknown □ Not Applicable

d. Are there any unusual utility costs or circumstances buyers should be aware of? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

28. Insurance Claims History

a. Have any insurance claims been filed relating to the Property in the past five years? □ Yes □ No □ Unknown

If yes, please provide dates, types of claims, and outcomes: _______________________

b. Has insurance coverage for the Property ever been denied, canceled, or non-renewed? □ Yes □ No □ Unknown

If yes, please explain: _______________________________________________________

c. Are you aware of any conditions that may affect the ability to obtain property insurance? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

APPLIANCES AND FIXTURES

29. Appliance and Fixture Defects

a. Are there any defects or malfunctions with any appliances or fixtures that will remain with the Property? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

b. Please list the approximate age of major appliances that will remain with the Property:

  • Refrigerator: _____ years □ Unknown □ Not Included
  • Range/Oven: _____ years □ Unknown □ Not Included
  • Dishwasher: _____ years □ Unknown □ Not Included
  • Microwave: _____ years □ Unknown □ Not Included
  • Washer: _____ years □ Unknown □ Not Included
  • Dryer: _____ years □ Unknown □ Not Included
  • Water Heater: _____ years □ Unknown □ Not Included
  • Other: ____________ _____ years □ Unknown □ Not Included

c. Are there any warranties for appliances or fixtures that may transfer to the buyer? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

ADDITIONAL INFORMATION

30. Additional Disclosures

a. Are there any other material defects affecting the Property not otherwise disclosed in this statement? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

b. Are there any other conditions or aspects of the Property that a buyer would want to know about when making a decision to purchase? □ Yes □ No □ Unknown

If yes, please describe: _____________________________________________________

31. Additional Comments

Please use this space to provide any additional explanations or information:

SELLER'S KNOWLEDGE STATEMENT AND CERTIFICATION

I/We, the undersigned Seller(s), hereby state that the information contained in this Property Disclosure Statement is true and accurate to the best of my/our knowledge as of the date signed below. I/We have not knowingly withheld any information that would affect the value or desirability of the Property. I/We have not knowingly failed to disclose any material defect or material fact relating to the condition of the Property.

I/We understand that this information is being provided as a courtesy to assist prospective Buyer(s) and is not a warranty or guarantee of any kind by the Seller(s) or any real estate agent. I/We understand that it is my/our responsibility to disclose any material facts of which I/we have actual knowledge that could affect the value or desirability of the Property.

I/We authorize the real estate agent(s) involved in this transaction to provide a copy of this disclosure to any prospective Buyer(s) or their agent.

Seller's Signature: __________________________ Date: ______________

Printed Name: _____________________________

Seller's Signature: __________________________ Date: ______________

Printed Name: _____________________________

BUYER'S ACKNOWLEDGMENT

I/We, the undersigned Buyer(s), hereby acknowledge receipt of this Property Disclosure Statement. I/We understand that this disclosure is not a warranty and that I/we should conduct my/our own independent inspections and investigations regarding the Property. I/We understand that this disclosure is based on the Seller's knowledge and may not include all defects or issues with the Property.

Buyer's Signature: __________________________ Date: ______________

Printed Name: _____________________________

Buyer's Signature: __________________________ Date: ______________

Printed Name: _____________________________

AGENT'S ACKNOWLEDGMENT

I, the undersigned real estate agent, have informed the Seller of the Seller's obligation to provide this Property Disclosure Statement to the Buyer. I have not made any independent investigation or verification of the information contained in this disclosure. I have no knowledge of any material defect in the Property other than what may have been disclosed in this statement or otherwise disclosed in writing to the Buyer.

Agent's Signature: __________________________ Date: ______________

Printed Name: _____________________________

Brokerage: _______________________________

Arizona Requirements for Property Disclosure Statement

Seller Disclosure Statement Requirement (A.R.S. § 33-422)

Arizona law requires sellers to disclose all known material facts about the property that might affect its value. This includes completing the Arizona Association of Realtors' Residential Seller's Property Disclosure Statement (SPDS) or equivalent document.

Material Fact Disclosure (Hill v. Jones, 151 Ariz. 81, 725 P.2d 1115 (App. 1986))

Sellers must disclose all known material facts that might affect the value or desirability of the property, including defects not readily observable by the buyer.

Lead-Based Paint Disclosure (42 U.S.C. § 4852d; 40 CFR Part 745)

For properties built before 1978, sellers must disclose known lead-based paint hazards, provide buyers with an EPA-approved information pamphlet, and allow buyers a 10-day period to conduct a lead-based paint inspection.

Water Damage and Mold Disclosure (A.R.S. § 33-422)

Sellers must disclose any past or present water damage, water intrusion, or mold issues affecting the property.

Structural Defects Disclosure (A.R.S. § 33-422)

Sellers must disclose known structural defects including foundation issues, roof problems, wall cracks, or other structural integrity concerns.

HVAC System Disclosure (A.R.S. § 33-422)

Sellers must disclose the age, condition, and any known defects in the heating, ventilation, and air conditioning systems.

Plumbing and Electrical System Disclosure (A.R.S. § 33-422)

Sellers must disclose known defects or issues with the property's plumbing and electrical systems, including any non-permitted work.

Flood Zone Disclosure (A.R.S. § 33-422)

Sellers must disclose if the property is located in a FEMA-designated flood zone or has experienced previous flooding.

HOA Disclosure (A.R.S. § 33-1806)

Sellers must disclose if the property is subject to a homeowners association (HOA), including providing CC&Rs, bylaws, and financial information about the association.

Environmental Hazards Disclosure (A.R.S. § 33-422)

Sellers must disclose known environmental hazards on the property, including asbestos, radon, underground storage tanks, or toxic substances.

Sewer/Septic System Disclosure (A.R.S. § 33-422)

Sellers must disclose the type of sewage disposal system (municipal sewer or septic tank) and any known issues with the system.

Water Source Disclosure (A.R.S. § 33-422)

Sellers must disclose the property's water source (municipal, well, hauled water) and any known issues with water quality or availability.

Pest Infestation Disclosure (A.R.S. § 33-422)

Sellers must disclose any known past or present pest infestations, including termites, scorpions, or other pests common to Arizona.

Boundary Dispute Disclosure (A.R.S. § 33-422)

Sellers must disclose any known boundary disputes, encroachments, or easement issues affecting the property.

Death on Property Disclosure (A.R.S. § 32-2156)

Arizona law does not specifically require disclosure of deaths on the property unless they relate to the physical condition of the property or are considered a material fact that might affect value.

Airport Vicinity Disclosure (A.R.S. § 28-8484)

Sellers must disclose if the property is located within the vicinity of a military or public airport as defined by Arizona law.

Swimming Pool Safety Disclosure (A.R.S. § 36-1681)

Sellers must disclose information about swimming pool barriers and safety features as required by Arizona law.

Methamphetamine Contamination Disclosure (A.R.S. § 33-422)

Sellers must disclose known methamphetamine production on the property, as this constitutes a material fact affecting property value.

Expansive Soil Disclosure (A.R.S. § 33-422)

Sellers must disclose known issues with expansive soils or other soil problems that could affect the property's foundation or structure.

Seller's Liability for Misrepresentation (A.R.S. § 33-422; Common Law)

Sellers can be held liable for fraudulent misrepresentation, negligent misrepresentation, or failure to disclose material facts about the property.

Frequently Asked Questions

A Property Disclosure Statement is a document in which the seller of a property discloses known material defects, issues, or problems with the property. These typically cover structural issues, water damage, pest infestations, environmental hazards, boundary disputes, and other conditions that might affect the property's value or desirability. The form varies by state but generally requires honest disclosure of problems the seller is aware of, rather than requiring the seller to investigate unknown issues.

As a landlord selling your rental property, you must disclose all known material defects, regardless of whether they're visible during an inspection. This typically includes structural issues, water damage, electrical or plumbing problems, environmental hazards (like lead paint, asbestos, or radon), past flooding or water intrusion, boundary disputes, and any major repairs performed. You should also disclose information about the current tenancy, including lease terms, security deposits held, and any ongoing tenant disputes. Failure to disclose known issues can result in legal liability, including potential lawsuits for fraud, misrepresentation, or breach of contract.

If you're a tenant in a property being sold, your rights generally remain protected under your existing lease. The new owner typically must honor the terms of your current lease until it expires. During the sale process, you may experience showings and inspections, but you should receive proper notice according to state law. While you're not responsible for completing the disclosure statement, be aware that the landlord may need to disclose information about your tenancy to potential buyers. If you've reported maintenance issues that haven't been addressed, these should appear on the disclosure statement. Consider documenting the condition of the property and any unresolved maintenance requests to protect yourself from potential disputes with the new owner.

As an investor with multiple properties, establish a systematic approach to property disclosures. Maintain detailed records for each property, including maintenance histories, repairs, known issues, and tenant communications about problems. Consider conducting pre-listing inspections to identify potential issues before completing disclosure forms. Be particularly thorough with properties you don't personally occupy, as courts may have less sympathy for investor-sellers who claim ignorance of property conditions. When purchasing properties, carefully review sellers' disclosures and consider hiring specialized inspectors for older properties or those with potential environmental concerns. Remember that disclosure requirements apply equally to investors and individual homeowners.

Failing to disclose a known material defect can have serious legal and financial consequences. The buyer could sue for fraudulent misrepresentation, fraudulent concealment, or breach of contract. Potential remedies available to the buyer might include rescission of the sale (canceling the transaction), monetary damages to cover repair costs, or compensation for diminished property value. In some cases, you might also face punitive damages, especially if the court determines the omission was intentional. Even if you win such a lawsuit, you'll likely incur significant legal fees and damage to your reputation. The best practice is always full and honest disclosure of all known issues.

Yes, disclosure requirements vary by state, and certain transactions may be exempt. Common exemptions include transfers between family members, court-ordered transfers (such as in divorce or foreclosure), transfers to or from government entities, and some estate sales. Some states also have exemptions for new construction. However, even when technically exempt, providing disclosures is often advisable to prevent future disputes. Real estate investors should note that in most states, being a non-occupant owner does not exempt you from disclosure requirements. Always consult with a real estate attorney familiar with local laws to understand your specific obligations.

Selling a property 'as-is' means the seller won't make repairs or provide credits for issues discovered during inspections. However, this does NOT exempt the seller from disclosure requirements. Even in as-is sales, sellers must still disclose known material defects. The 'as-is' clause protects against repair requests but not against fraud or misrepresentation claims for undisclosed known issues. For landlords and investors, an as-is sale can be useful for properties needing work, but you must still complete disclosure forms honestly and completely.

When selling a rental property, err on the side of over-disclosure rather than under-disclosure. Include all known issues, even if they seem minor or have been partially repaired. Be specific about when problems occurred, what repairs were made, and by whom. For example, instead of simply noting 'past water damage,' specify 'basement flooding in 2019, professional remediation completed, no recurrence since installation of sump pump.' Also disclose tenant-reported issues, even if you haven't personally verified them. Include information about the current tenancy, including lease terms, rent amount, security deposits held, and any ongoing disputes. Thorough disclosures protect you legally and can actually facilitate smoother transactions by preventing surprises later in the process.

While disclosure statements are primarily intended for potential buyers, as a tenant, you can request to see the disclosure statement from your landlord, though they're not legally obligated to share it with you in most jurisdictions. Reviewing the disclosure can give you insight into known issues with the property and verify that problems you've reported are being properly disclosed. If you notice that significant issues you've reported are missing from the disclosure, you might consider documenting this discrepancy to protect yourself. Remember that your lease rights continue regardless of the property sale, and the new owner will generally be bound by the terms of your existing lease.

If you discover an undisclosed issue after purchasing a rental property, first document the problem thoroughly with photos, videos, and professional assessments. Determine when the issue likely originated to establish whether the seller should have known about it. Review the disclosure statement to confirm the issue wasn't mentioned. Consult with a real estate attorney to evaluate your legal options, which might include claims for fraudulent misrepresentation, fraudulent concealment, or breach of contract. There's typically a statute of limitations for such claims, so act promptly. Consider whether the issue affects your tenants' habitability rights and address any immediate safety concerns. Keep detailed records of all repair costs, as these may be recoverable damages if you pursue legal action.