Humber/Ontario Real Estate Course 4 Exam Practice

What must be included in a Seller Property Information Statement (SPIS) to ensure full disclosure?

1. Property dimensions.

2. Material defects on the property.

3. Neighborhood amenities.

4. Average utility costs.

5. Previous owners' contact information.

6. Nearby school ratings.

The correct answer is: Material defects on the property.

The inclusion of material defects on the property in a Seller Property Information Statement (SPIS) is crucial for ensuring full disclosure. This requirement stems from the need to provide potential buyers with a clear understanding of any issues that may affect the property's value, livability, or safety. Material defects refer to significant problems that could influence a buyer's decision, such as structural damage, plumbing issues, or electrical system deficiencies. By mandating the disclosure of material defects, the SPIS aims to foster transparency in real estate transactions. It helps prevent future disputes between buyers and sellers regarding the condition of the property, as buyers are informed upfront about potential problems. This is not only a legal safeguard but also an ethical practice that promotes trust in the real estate market. While other items listed might be informative or useful for a buyer's assessment, they do not carry the same level of obligation for disclosure under the SPIS guidelines. For example, property dimensions and neighborhood amenities might enhance a buyer's understanding of the property, but they fall under more subjective categories and are not legally required for full transparency. Similarly, information like average utility costs, previous owners' contact information, and nearby school ratings may provide context but do not relate to the essential condition of the property itself.