Escrow & TitleIntermediateArizona Exam

In Arizona, the Seller's Property Disclosure Statement (SPDS) is:

ARequired only when selling properties over $500,000

BA voluntary disclosure prepared by the seller disclosing known material facts about the propertyCorrect

CA government-mandated disclosure reviewed and approved by ADRE

DOnly required for commercial properties

Why A voluntary disclosure prepared by the seller disclosing known material facts about the property Is Correct

Answer B: A voluntary disclosure prepared by the seller disclosing known material facts about the property

The SPDS is a voluntary but widely used disclosure form prepared by the seller that discloses known material facts about the property's condition and is provided to prospective buyers to facilitate informed decision-making.

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.