A document completed by the seller that reveals known issues with the property, such as past flooding, structural repairs, insurance claims, or the presence of substances like vermiculite insulation or underground oil tanks. In Ontario, sellers have a legal duty to disclose material latent defects, and the Seller Property Information Statement (SPIS) is the standard form used.
Why It Matters
A thorough disclosure statement helps you understand the property's history before committing. If a seller fails to disclose a known defect, they can be held legally liable even after closing. Always review this document carefully alongside the home inspection report.
Real-World Example
You are reviewing a property in Etobicoke. The seller completes the SPIS and discloses that the basement flooded once in 2019 due to a sewer backup, that the home has vermiculite insulation in the attic, and that a permit was not obtained for the finished basement. Armed with this information, you factor remediation costs into your offer price and request a condition for a mold inspection.
Ontario & GTA Context
In Ontario, sellers are not legally required to fill out the SPIS form, and many listing agents advise against it to limit the seller's liability. However, sellers have a common-law duty to disclose material latent defects regardless of whether they complete the form. Failure to disclose a known serious defect can lead to a successful lawsuit by the buyer after closing.
How It Works in Practice
If the seller provides an SPIS, review every line carefully with your agent and lawyer. If the seller declines to provide one, your home inspection becomes even more critical. Ask the seller's agent direct questions about the property's history -- agents have disclosure obligations under TRESA as well.
Common Questions
Does the seller have to fill out the SPIS in Ontario?▾
What if the seller lied on the disclosure statement?▾
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