The Seller Property Questionnaires purpose is to supply the buyer with “known material or significant items affecting the value or desirability of the property and help eliminate misunderstandings about the condition of the property.” The SPQ includes details and information about items such as:
- repairs/alterations to the property
- defects in the structure systems and appliances
- insurance settlements
- water-related or mold issues
- animals and pests
- boundaries and access
- landscaping and pool
- ownership or legal claims
- condominium issues
- the neighborhood, and more.
Sellers are required to disclose all material facts (of which they have knowledge) that may affect the value and desirability of the property. The seller should even disclose the facts related to things that occurred in the past, including prior to the seller’s ownership of the property. Regardless of how much time has passed, the seller should answer the questions based on the seller’s actual knowledge. The SPQ asks the seller to turn over copies of reports, inspections, disclosures, warranties, maintenance recommendations, estimates, studies, surveys “or other documents” pertaining to the condition of the property.
The SPQ is a seller’s good faith recollection about various aspects about the property and not a guarantee of the property’s condition. NOTE: The SPQ questions are phrased as “are you (seller) aware” of the information being asked, and if the seller is not aware the seller can mark “no” to those questions. Buyers should remember that the SPQ is not a substitute for the buyer’s own inspections and investigations.
When should the SPQ be completed and delivered to a buyer?
The default language in all C.A.R. purchase agreements requires all disclosures – including the SPQ – to be delivered within seven days after acceptance of the contract. It is important for sellers to deliver the SPQ in a timely manner so as not to inadvertently create cancellation rights for the buyer. Delivery after the initial seven-day disclosure period may extend the buyer’s contingency periods or even reinstate a cancellation right if the SPQ is delivered after contingencies have been removed.
Just remember the best thing to do is when in doubt — Disclose.
The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are facing a legal issue of any kind, get competent legal advice in your State immediately so that you can determine your best options.
If you need assistance with your transaction and ready to hire a TC, I would like to help you.