Escrow & TitleIntermediateArizona Exam

In Arizona, a seller disclosure on the SPDS covers which of the following?

AThe seller's financial condition and ability to close the transaction on the agreed closing date, including any pending bankruptcy, divorce, or creditor action affecting the title
BKnown physical and material conditions of the property affecting its value or the buyer's decision to purchaseCorrect
CThe seller's subjective opinion of the property's current market value, since buyers are entitled to know the seller's own assessment of what the property is worth
DAll known information about neighboring properties that might affect the buyer's decision, since Arizona's disclosure duty extends to neighborhood-level material information

Why Known physical and material conditions of the property affecting its value or the buyer's decision to purchase Is Correct

Answer B: Known physical and material conditions of the property affecting its value or the buyer's decision to purchase

The Residential Seller's Property Disclosure Statement (SPDS) in Arizona requires sellers to disclose known physical conditions, material defects, legal issues, and other factors affecting the property's value or the buyer's decision to purchase.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

People Also Study

State-Specific Concepts

Disclosure Requirements

Study This Topic

Practice More Arizona Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Arizona Quiz →