Humber/Ontario Real Estate Course 4 Exam Practice

Which statement about the Seller Property Information Statement (SPIS) is accurate?

1. It is mandatory for sellers to complete it when listing a property

2. It mainly covers legal and financial information

3. It includes details about structural and mechanical issues

4. It is only used for commercial properties

5. Sellers must always provide it to prospective buyers

6. The SPIS form is provided by the real estate board

The correct answer is: It includes details about structural and mechanical issues

The Seller Property Information Statement (SPIS) serves as a valuable tool in real estate transactions, providing potential buyers with crucial information about the property being sold. The correct statement, which notes that the SPIS includes details about structural and mechanical issues, reflects the purpose of the document accurately. Sellers use the SPIS to disclose material facts regarding the property, such as its condition, any known issues with the structure or mechanical systems (like plumbing, electrical, heating, etc.), and other pertinent details that may affect a buyer's decision. In providing such information, the SPIS aims to promote transparency in transactions, ultimately aiding buyers in making informed choices. While it is beneficial for buyers to understand the property's condition, the SPIS is not a comprehensive legal or financial summary; instead, it focuses primarily on disclosing known issues with the property itself. In this context, the other statements do not accurately describe the SPIS. It is not mandatory for sellers to complete it when listing a property, and not all properties are required to have one, as it is meant to be a voluntary disclosure tool. Furthermore, the SPIS isn't limited to commercial properties; it can be used for residential real estate as well. Not every seller must provide the SPIS to prospective