As a home seller in Ontario, your goal is a smooth, transparent transaction that closes without any future complications. In the spirit of transparency, your real estate agent might present you with a document called the Seller Property Information Statement (SPIS). Its purpose seems noble: to provide potential buyers with detailed information about your property upfront.

However, the SPIS is one of the most controversial and debated documents in Ontario real estate. While intended to help, it can unintentionally create significant legal risks for sellers. Before you consider putting pen to paper, it’s crucial to understand what the SPIS is, what it asks, and the substantial pros and cons of using it.

What is the Seller Property Information Statement (SPIS)?

The SPIS (OREA Form 220) is a voluntary disclosure form that a seller can choose to complete. It contains a detailed questionnaire about the property’s history, condition, and any known issues. The idea is to give buyers a fuller picture of the home beyond what they can see during a viewing, potentially building their confidence and streamlining the transaction.

It is critical to distinguish between the voluntary disclosures on an SPIS and a seller’s mandatory legal duties. In Ontario, your primary legal duty is to disclose any hidden (“latent”) defects that make the property dangerous, potentially dangerous, or unfit for habitation. The SPIS goes far beyond this legal requirement, asking a wide range of questions that you are not otherwise obligated to answer.

What’s Inside the SPIS? A Look at the Questions

The SPIS is several pages long and delves into highly specific details about your property. The questions are typically grouped into categories, including:

  • Property Information: Questions about property taxes, surveys, easements, and any encroachments.
  • Structural Systems: Inquiries about any known problems with the foundation, basement moisture, or the roof.
  • Building Systems: Questions about the age and working condition of the heating (HVAC), electrical, and plumbing systems, including specific questions about things like knob-and-tube wiring.
  • Environmental Matters: Asks about the presence of UFFI (urea formaldehyde foam insulation), asbestos, underground fuel tanks, and any past soil contamination tests.
  • Improvements and Renovations: Requires you to state whether any additions or renovations were completed and if you obtained the proper building permits.
  • Insurance: Asks about any past insurance claims related to the property, such as fire or water damage.

The Argument FOR Using the SPIS (The “Pros”)

While the risks are significant, some people still advocate for using the form for a few key reasons:

  1. It Can Increase Buyer Confidence: Proactively providing detailed information can make buyers feel more comfortable with the property, as it suggests the seller is being open and honest.
  2. It May Lead to a Cleaner Offer: In some cases, a comprehensive SPIS, especially when paired with a pre-listing inspection report, might give a buyer the confidence they need to submit a firm offer in Ontario without an inspection condition of their own.
  3. It Documents Disclosures: It creates a written record of the information you have provided to buyers, which can be referenced later.

The Strong Argument AGAINST Using the SPIS (The Cons and Risks)

Despite the potential benefits, the overwhelming consensus from real estate lawyers across Ontario is to advise their seller clients not to fill out the SPIS. The reasons are compelling:

  1. It Creates Immense Legal Liability: This is the number one reason to be wary. Once you write an answer on the SPIS, it can be treated as a legal “warranty” or representation. If any information you provide is found to be inaccurate—even due to an honest mistake, a forgotten detail, or an issue you were genuinely unaware of—you can be sued for misrepresentation long after you’ve sold the home.
  2. You Are Not an Expert: The form asks you to provide definitive answers about complex systems in your home. Are you a qualified expert on the electrical code, the exact age of your furnace, or the condition of your foundation? A simple “I’m not aware of any problems” can be challenged in court if an issue arises later.
  3. It Goes Far Beyond Your Legal Duty: As a seller, your legal duty is to disclose dangerous latent defects. The SPIS voluntarily expands your disclosure obligations when selling a home in Ontario to a much broader and more complex range of topics, thereby increasing your exposure to potential legal claims.
  4. An Omission is as Risky as a Mistake: Forgetting to mention a minor basement leak you had repaired five years ago could be seen as a material omission if the new owners experience a similar leak. Proving you simply forgot, rather than intentionally concealed it, can be a difficult and expensive legal battle.

The Verdict: Should You Use an SPIS?

Given the significant risks, the standard advice from most real estate lawyers in Ontario is no. The potential for future liability generally outweighs the limited benefits of providing the form.

A safer and often more effective way to build buyer confidence is to commission a pre-listing home inspection from a qualified, licensed inspector and make the report available to potential buyers. This provides detailed information from a professional, insured third party, transferring the responsibility for the information from you to the expert.

Ultimately, the decision to fill out an SPIS rests with you, the seller. However, it is a decision that should never be made without a thorough conversation with both your real estate agent after signing your listing agreement and, most importantly, your real estate lawyer. They can provide the specific legal advice you need to protect yourself during your home sale.