EnvironmentalIntermediateArizona Exam

The Arizona Residential Seller's Property Disclosure Statement (SPDS) requires disclosure of:

AOnly structural defects that the seller has personally observed and that are visible during a reasonable walkthrough inspection of the property's interior and exterior

BMaterial facts known to the seller that might affect the property's value or the buyer's decision to purchaseCorrect

COnly defects and conditions formally identified and documented in a professional home inspection report commissioned by the buyer or the seller

DAny and all defects in the property regardless of materiality or whether the seller had any knowledge of the condition, since Arizona's disclosure duty is absolute

Why Material facts known to the seller that might affect the property's value or the buyer's decision to purchase Is Correct

Answer B: Material facts known to the seller that might affect the property's value or the buyer's decision to purchase

The SPDS requires Arizona sellers to disclose all material facts known to them that might affect the property's value or a buyer's decision to purchase, including environmental concerns, water issues, HOA matters, and physical condition.

Exam Tip: Environmental

Environmental questions test knowledge of hazards like asbestos, lead-based paint, radon, and mold. Know the disclosure requirements and when a professional inspection is required. CERCLA liability is strict, joint, and several.

People Also Study

Key Terms to Know

Contingency

A condition in a purchase contract that must be satisfied before the sale can proceed to closing.

Loan-to-Value Ratio (LTV)

The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.

Appraisal

A professional estimate of a property's market value prepared by a licensed or certified appraiser.

Comparable Sales (Comps)

Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.

State-Specific Concepts

Disclosure Requirements

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