In real estate parlance, the Seller's Property Disclosure Statement , otherwise known as the SPDS, is the seller’s best information about the condition of the property.
The SPDS is a six page document which you, as the buyer, will have to initital and sign indicating you have read this document.
The SPDS is a legal document and can be used in court cases where material facts about the property are disputed.
It is important for both you, the buyer , and your Realtor to review the SPDS to determine if there may be potential problems with the property, such as roof leaks, or previous repairs to the property which you as a seller may want to investigate.
On what is called the BINSR- Buyer’s Inspection Report and Seller’s Response, the buyer can indicate any problems he/she wants clarified referring to the Seller’s Property Disclosure Statement as well as requesting repairs from the Home Inspection.
Many properties which have been purchased by investors, but never lived in, will not provide an SPDS. They will say they never lived in the property and do not know. That is your red flag to do a thorough and complete home inspection on the property. If you are looking at a HUD home, all inspections are your responsibility. I had a situation where there was no water from the well to the home, my client purchased the property and fixed the pipe. Make sure you understand the ramifications of what is being said. It is far better to back away from a property than press on and think you can fix the problem.