WHat is a sellers property disclosure statement (spds)?

For the seller of the home, the home inspection if one of the most dreaded processes of the home selling process!  It ranks right up there with having your wisdom teeth pulled! 

But, it’s a necessary process with the sale of most homes, and a requirement of homes that will have a new mortgage. 

if a person is paying cash for a home they can waive the home inspection process and just take their chances.  I don’t recommend this, but it is possible. 

Read below to find out more about the Home Inspection Process and watch the video below. 



Additional Assistance

You can download the SPDS sample. Just click on the image and the PDF will download immediately and you can save it to your system if you like.

bThe Seller’s Property Disclosure Statement (SPDS)


The Seller’s Property Disclosure Statement (SPDS) is a document that is designed to protect the seller and educate the buyer.  

This 8-page document provides the seller the opportunity to disclose important information about their home to the buyer, such as the condition of the property, the functionality of the property, and the livability of the property.

For example, is the house connected to a City sewer, or does it have a septic tank? Is the house in the flight path of the airport?

Why is this important?  Sellers are legally obligated to disclose all known material facts about the property to the buyer. They cannot hold back anything they know without the opportunity to be sued later on. The SPDS is good for the seller because it allows them to disclose things they could be liable for, and it’s good for the buyer so they can make an informed decision.

As a potential home buyer, you need to read the SPDS carefully.  You don’t want to move in and discover there is a leak in the roof that was disclosed to you in writing during your due diligence period, but you just didn’t bother to read it. 

Once you read the SPDS ask questions. If there is anything you don’t understand or that doesn’t sit right with you, ask questions, and do your research.  One awesome tool to help you verify the information is the Buyer Advisory.  

The SPDS is completed by the seller, which means it’s subject to human error and inaccuracies. Although they are well-meaning,  they can forget things if they are not relevant to them. For example, maybe the seller of the house does not have school-age children and assumes the school-age children go to the school just down the road. If it’s important to you, verify the information

If there is anything disclosed in the SPDS that you disapprove of, you can include it in the BINSR or if it is more than you can bear, you are not required to move forward with buying the house.

You should also read the information about the BINSR.



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