Seller Property Information Statement (SPIS)매도인 정보 진술서

What is it?

A Seller Property Information Statement (SPIS) is a form where the seller answers questions about the home in writing, from their own knowledge. Has the roof ever leaked? Has water come into the basement? What renovations were done, and were permits taken out? The seller answers "yes", "no" or "unknown" and adds details.

RECO (Ontario’s real estate regulator) calls it a "property information statement" and notes it is sometimes referred to as an SPIS. The Ontario Real Estate Association (OREA) publishes a standard form, commonly called "Form 220". Confirm the exact form number and current version with your agent.

Is it required?

No. Ontario law does not require sellers to complete an SPIS. RECO’s guidance says that "some sellers" choose to make information available to interested buyers, and advises talking to your agent about the pros and cons before you do.

What the law does regulate is what happens next. If the seller completes a statement meant for buyers, the seller’s agent must tell every buyer who shows interest that it exists, and must provide it as soon as possible when asked (O. Reg. 567/05, s. 22.3).

Not completing an SPIS does not remove the seller’s legal duties to disclose (see below). An SPIS does not replace them.

Two different uses

RECO says the seller and agent should be clear about which use the statement is for before it is filled in.

The same form is handled differently depending on whether it is "for the agent" or "for buyers". Decide with your agent before you sign. Even with a statement for the agent only, if the agent knows a fact the seller must disclose by law, the agent must disclose it to every interested buyer (s. 22.2).

What does it ask?

Forms vary, but the questions usually cover the areas below. They overlap a lot with the examples RECO gives of "material facts".

• Structure and exterior: roof condition and repairs, foundation cracks, siding, windows, any past fire.
• Water: basement flooding or leaks, sump pump, sewer or septic, well or municipal water.
• Systems: heating, cooling, water heater (owned or rented), electrical (wiring type, for example knob and tube), plumbing (lead or galvanized pipes).
• Renovations and permits: what work was done, whether building permits were obtained, whether a basement apartment is legal.
• Rights and limits: easements, boundary disputes, whether a survey exists, shared driveways.
• Environment and other: mould, asbestos, urea formaldehyde insulation, oil tanks, past use as a grow operation or other illegal use.
• For a condo: special assessments, lawsuits, changes in fees (read together with the status certificate).

If you are the seller: wrong answers create liability

Buyers rely on the SPIS when they decide. If an answer is wrong, it can be treated as a misrepresentation, which can lead to a lawsuit or a collapsed deal. RECO Bulletin 7.4 explains that hiding a latent defect (one that is hard to find with a normal inspection and makes the home unfit, dangerous or potentially dangerous), or being wilfully blind to it, increases the seller’s liability.

Because wrong answers create liability, think carefully about whether to complete an SPIS, and talk to your lawyer. If you do, answer only what you know, write "unknown" when you do not know, and never guess. Keep receipts, permits and repair records to back up your answers. It is safest to have a lawyer review it before you sign.

Facts the law requires you to disclose (such as known latent defects) must be disclosed whether or not you complete an SPIS. If your agent knows such a fact, the agent must disclose it to every interested buyer too (s. 22.2).

If you are the buyer: it is not a warranty

• The SPIS is what the seller knows, as far as they know it. It does not guarantee the home’s condition. Defects the seller does not know about are not in it.
• So a home inspection is still needed even with an SPIS. RECO Bulletin 7.4 says patent (visible) defects are a matter of "buyer beware": the buyer is expected to do their own inspections and due diligence before waiving conditions.
• Follow up on every "yes" (flooding, repairs, unpermitted work) with your inspector and lawyer. If there are many "unknown" answers, check those areas yourself.
• A seller who does not provide an SPIS is not a red flag by itself. It is optional, and RECO notes that some sellers provide one. Ask your questions in writing through your agent.
• If something in the SPIS is a reason you are buying, ask your lawyer whether to put it in the offer as a condition or a representation. Statements that are not in the offer are hard to rely on later.

It is different from the legal duty to disclose

An SPIS is information the seller chooses to give. The legal duty to disclose is not a choice. According to RECO Bulletin 7.4, a seller must disclose latent defects, does not have to disclose patent defects, but must not conceal them. Which category a defect falls into is a complicated legal question that needs a lawyer.

Agents have their own separate duty. They must take reasonable steps to find out the material facts for their client (buyer or seller) and disclose them. RECO Bulletin 7.3 says simply accepting the seller’s word is not enough; research, verification and documents are needed.

Example

Condos and pre-construction

For a resale condo, read the SPIS for the unit together with the status certificate for the condo corporation. The SPIS covers problems inside the unit (leaks, work done); the status certificate shows the building’s finances and lawsuits.

When you buy a home that is not built yet, there is no SPIS. Instead you get the disclosure statement under the Condominium Act and the Tarion warranty. See "Disclosure statement".