Seller Misrepresentation & Nondisclosure in Arizona
Arizona's disclosure laws impose significant obligations on sellers of residential and commercial property. When those obligations are not met — through omission, misrepresentation, or negligent failure to disclose a material defect — buyers have legal remedies that can include rescission, damages, and attorneys' fees.
Patrick has handled disclosure disputes on behalf of both buyers and sellers, including a published Court of Appeals matter involving alleged plumbing defects following a residential sale.
He understands the technical requirements of Arizona's SPDS (Seller Property Disclosure Statement), the materiality standard courts apply, and the practical dynamics of resolving these disputes efficiently — whether through pre-suit negotiation, mediation, or trial.
What we handle
Representative matters.
SPDS-based non-disclosure claims
Fraudulent and negligent misrepresentation
Post-closing defect disputes (residential & commercial)
Broker and dual-agency disclosure issues
Rescission and damages claims
Defense of seller and broker disclosure claims
Claims against sellers who answered the Seller Property Disclosure Statement falsely or left a known defect off it
Claims against listing and buyer's agents who knew of a defect and said nothing
Rescission, repair cost, and diminished value damages, and punitive damages where the concealment was deliberate
Defense of sellers and brokers accused of nondisclosure, including as-is and inspection defenses
How we approach it
A disciplined, strategy-first method.
Materiality is the threshold
Not every undisclosed fact is actionable. We evaluate materiality early — and tell clients honestly whether a claim is worth pursuing.
Document the defect
Disclosure cases are won with photographs, inspection reports, and expert opinion. We coordinate that record from intake forward.
Pursue resolution before trial when sensible
Most disclosure disputes can resolve through targeted demand letters, mediation, or early settlement — when handled with credibility.
Frequently asked
Questions clients often ask.
- What counts as a 'material' defect?
- Generally, a fact is material if a reasonable buyer would consider it important to the decision to purchase. Arizona courts apply this standard case-by-case.
- Is the SPDS legally required?
- Arizona does not mandate the SPDS by statute, but it is the industry-standard disclosure document and is almost universally used. Misstatements on the SPDS frequently form the basis of disclosure claims.
- How quickly do I need to act after closing?
- Disclosure claims are subject to statutes of limitations and equitable doctrines like laches. As a rule, act promptly once a defect is discovered.
- How do I prove the seller knew about the defect?
- Rarely from a confession, and almost never from the seller's own paperwork alone. Your first indication may come from a contractor addressing an issue at the property. The buyer who starts fixing the problem before the evidence is preserved has often destroyed the case. The buyer who calls Patrick first has an opportunity to explore their options.
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