I realize there is a lot of reading below. However, part of my job is to keep us both out of court. Just one more reason to use a professional Realtor.

For years, I have been advising clients about potential legal issues relating to the real estate form know as the “Seller Property Information Statement”.  (See Seller Information on my website for a detailed discussion.)

As a result of recent lawsuits in Ontario, Royal LePage Triland Realty is now asking its Realtors to have the following acknowledgement signed by Sellers.  

Royal LePage Triland is advising our Sellers to use caution when completing the Seller Property Information Statement, commonly referred to as an “SPIS”.

The purpose of the SPIS is to provide information to buyers who may be interested in purchasing your home. Some Sellers have been successfully sued by the Buyer of their property because of unidentified problems with the home that were pre-existing but not identified on the SPIS.

However, if you complete the form accurately, the form can be used as evidence in your favour demonstrating that the Buyer was not misled. Most problems have arisen where the information disclosed on the SPIS is misleading or untrue.

For all responses, unless you are sure your response is “yes” or “no”, you should indicate “unknown” as your response. If you have had past issues with your property that you have remedied, you should indicate these on the form.

Whether or not you complete an SPIS, it is still incumbent upon a Seller to report any material defects in the property to a buyer. For example, if there are known issues such mould, asbestos, water penetration, etc., these types of deficiencies must be disclosed.

We are providing this information as a caution prior to completing an SPIS. We would also recommend, for further clarification to contact your lawyer.

As a Realtor, I have a legal obligation to determine “material facts” from a Seller and on behalf of a Buyer.

The following is an excerpt from Code of Ethics in the Real Estate and Business Brokers Act of Ontario. In the earlier Code, the words were “pertinent facts”. The phrase “material facts” means any fact that would affect a reasonable person’s decision to acquire or dispose of an interest in real estate.

MATERIAL FACTS (REBBA)

21.1 A broker or salesperson who has a client in respect of the acquisition or disposition of a particular interest in real estate shall take reasonable steps to determine the material facts relating to the acquisition or disposition and, at the earliest practicable opportunity, shall disclose the material facts to the client. O. Reg. 580/05, s. 21 (1).

21.2 A broker or salesperson who has a customer in respect of the acquisition or disposition of a particular interest in real estate shall, at the earliest practicable opportunity, disclose to the customer the material facts relating to the acquisition or disposition that are known by or ought to be known by the broker or salesperson. O. Reg. 580/05, s. 21 (2).