Brian Madigan LL.B., Broker
BRMadigan@iSourceRealEstate.com

RE/MAX West Realty Inc.,
Brokerage
Independently owned and operated

96 Rexdale Blvd. 
Toronto, Ontario 


Phone: 416-745-2300
Toll Free: 1-888-507-0817

 

Search Blog

Search in:  
    
    
       

Sort by:

Using a Seller Property Information Statement (SPIS) in Ontario

August 29, 2017 - Updated: August 29, 2017

Using a Seller Property Information Statement (SPIS) in Ontario
 

For a considerable number of years the Seller Property Information Statement in Ontario has fallen into disuse.
 

It was subject to a great deal of criticism at the turn of the century and went downhill after that. Many of the problems related to the carelessness of both Sellers and their advisors concerning the completion of the Form. It wasn’t taken seriously enough and it wasn’t completed carefully enough.
 

In addition, the standard Form OREA document, namely Form 220, the SPIS has been substantially upgraded over the years. Also, agents have been educated in its use. So, basically, things aren’t as bad as the used to be.
 

The Code of Ethics deals with the SPIS:
 

"Seller property information statement

 

20. If a broker or salesperson has a seller as a client and knows that the seller has completed a written statement that is intended to provide information to buyers about the real estate that is available for acquisition, the broker or salesperson shall, unless the seller directs otherwise,

 

(a) disclose the existence of the statement to every buyer who expresses an interest in the real estate; and

 

(b) on request, make the statement available to a buyer at the earliest practicable opportunity after the request is made."

 

The s. 20 SPIS is NOT  the Form 220 OREA Document. That’s important. It can be anything else. For example, a Seller wants to tell prospective purchasers about the new roof. But, the Seller wants to be careful not to overstate the new roof and thereby “get in trouble”.

 

So, let’s go the OREA Form and modify it slightly to suit these specific circumstances. Here we are left with the opening and the closing statements for the Form 220 SPIS, but the rest of it is “custom made”. It simply deals with the roof. Nothing else! That’s the key issue. The Seller is directing his mind simply to the roof and nothing else about the building. So, all he does is talk about the roof. The Seller is careful and accurate.

 

In similar circumstances, Sellers often got into trouble dealing with one matter but completing and supplying information with respect to something else. That was where they got into trouble. The liability issue is something otherwise overlooked. In this document, we talk about the roof, just the roof, and nothing but the roof!

 

This is how the SPIS might appear:

 

Seller Property Information Statement

 

Property:    123 Main Street, Toronto, Ontario

                     Lot 25, Plan M-150, Land Titles

 

Seller:         John Smith

 

CAUTION to SELLERS

 

ANSWERS MUST BE COMPLETE AND ACCURATE.

 

This statement is designed in part to protect Sellers by establishing that correct information concerning the property is being provided to buyers.

 

All of the information contained herein is provided by the Sellers to the brokerage/broker/salesperson. Any person who is in receipt of and utilizes this Statement acknowledges and agrees that the information is being provided for information purposes only and is not a warranty as to the matters recited hereinafter even if attached to an Agreement of Purchase and Sale.

 

The brokerage/broker/salesperson shall not be held responsible for the accuracy of any information contained herein.

 

CAUTION to BUYERS

 

BUYERS MUST STILL MAKE THEIR OWN ENQUIRIES.

 

Buyers must still make their own enquiries notwithstanding the information contained on this statement. Each question and answer must be considered and where necessary, keeping in mind that the Sellers’ knowledge of the property may be inaccurate or incomplete, additional information can be requested from the Sellers or from an independent source such as the municipality.

 

Buyers can retain an independent inspector to examine the property to determine whether defects exist and to provide an estimate of the cost of repairing problems that have been identified.

 

This statement does not provide information on psychological stigmas that may be associated with a property.

 

1. To the best of my knowledge and belief the following information is true.

 

2. I retained ABC Roofers to replace the shingles on the roof  in July 2017.

 

3. Attached as Schedule A is a copy of the Invoice and Warranty of ABC Roofers dated 22 August 2017.

 

4. Attached as Schedule B is a copy of my Receipted Invoice dated 25 August 2017.

 

5. Attached as Schedule C is a copy of the Shingle Warranty from XYZ Manufacturing dated 25 August 2017.

 

6. I believe that both warranties are limited in nature but transferrable to a Buyer.

 

7. I have no expertise in building or construction whatsoever, and I have relied completely upon ABC Roofers to recommend repairs, undertake and complete the repairs as required, and provide a limited warranty.

 

8. Personally, I am not in a position to offer any further information or contractual warranty.

 

 

Schedule(s) attached hereto and forming part of this Statement include: A, B,

C, .....................................

 

The Sellers state that the above information is true, based on their current actual knowledge as of the date below. Any important changes to this information known to the Sellers will be disclosed by the Sellers prior to closing.

 

Sellers are responsible for the accuracy of all answers. Sellers further agree to indemnify and hold the Brokerage/Broker/Salesperson harmless from any liability incurred as a result of any buyer relying on this information.

 

The Sellers hereby authorize the Brokerage to post a copy of this Seller Property Information Statement into the database(s) of the appropriate MLS® system and that a copy of this Seller Property Information Statement be delivered by their agent or representative to prospective buyers or their agents or representatives.

 

SELLERS’ Acknowledgement

 

The Sellers hereby acknowledge receipt of a true copy of this statement.

.............................................................      DATE...................................

.............................................................      DATE...................................

 

BUYERS’ Acknowledgement

 

The Buyers acknowledge that the information provided herein is not warranted and hereby acknowledge receipt of a copy of the above information including any applicable Schedule(s).

 .............................................................     DATE...............................

(Signature of Buyer or Authorized Representative)

.............................................................      DATE...................................

.............................................................      DATE...................................

 

Brian Madigan LL.B., Broker

www.iSourceRealEstate.com


Tagged with: seller property information statement spis orea form 220 orea code of ethics ontario law
| | Share

Brian Madigan LL.B. Broker

RE/MAX West Realty Inc. Brokerage

Independently owned and operated

96 Rexdale Blvd. , Toronto Ontario,

Powered by Lone Wolf Real Estate Technologies (CMS6)