Seller Property Information Form

While preparing a property for a listing, your agent will present you with a number of forms. Some of the form are mandatory, the others are optional. Seller Property Disclosure Statement (SPIS) is an optional document filled out by the seller at the time of property listing. It contains information relating to defects, renovations and other pertinent property information based on the seller’s knowledge and experience.

Sellers should be aware that the SPIS is not a required document for the binding Agreement of Purchase and Sale. This form is usually filled when the demand for a property is low, and the seller is confident about his disclosures. The form contains many ambiguous and complex questions that might be difficult to answer correctly.

For instance, there is a question asking if there are any defects in any appliances or equipment included with the property. But what constitutes a “defect”? Property owners will provide an answer based on their own subjective understanding of the word “defect”. Some owners may interpret the word “defect” as “working or not working” (i.e., the dishwasher does not work at all). Others may define “defect” it as “working, but has minor issues that may need to be fixed”, such as the dishwasher works, but it does not clean very well.

If signed, the existence of the SPIS will be acknowledged on the MLS listing for any potential buyer to review at anytime. For sellers, providing the SPIS opens doors to future litigations as a result of inaccuracies in filling the form. As a sellers’ agent I would advise owners against signing this form to protect themselves form any possible misunderstandings.

The SIPS does not guarantee to list all deficiencies, and it’s important for buyers not to completely rely on the information contained in the form. It’s highly recommended for buyers to get an independent home inspection in order to confirm the accuracy of sellers’ representations provided, as well as discover any further defects.