[Home Buying/Selling Tips] What is a Seller Property Information Statement (SPIS)?
by Warren McNeil
If you are considering selling your home, one of the things we recommend you do after the Listing Agreement has been completed is to fill out a Seller Property Information Statement (SPIS).
Here is part of a sample SPIS form:
Click to see larger image
The SPIS is a valuable tool for buyers because it can aid in helping the buyer better understand information about the property before putting in an offer. The seller is disclosing this information up front so there will be no surprises later during negotiations.
Some of the information that is outlined in the SPIS:
Water supply and sewage systems
Registered rights of away
defects of equipment on the property
structure damage
Road improvements
As realtors, we are not trained in home construction, electrical and plumbing so we can't always identify problems with a house. The SPIS provides a means for the disclosure of information by the seller to any problems to the best of their knowledge. It is still recommended that buyers seek the expertise of a home inspector. The SPIS does not eliminate the need for a home inspection. I repeat; The SPIS does not eliminate the need for a home inspection.
Included in the SPIS is a structural checklist asking the seller, "to the best of their knowledge", if there have been any recent renovations or improvements made to the property, are there any problems with the heating or air conditioning, plumbing or roof. There is also a section on environmental issues for use in dealing with rural properties. Issues here deal with such items as water supply and if the water is potable (suitable for drinking). All information that is valuable to potential buyers.
The SPIS can help protect sellers against possible liability and that is why many real estate boards are recommending them to sellers.
The SPIS can help assist buyers in making an informed decision prior to putting in a offer.
References:
OREA booklet: How to sell your Home - pg 53
ISBN 0-9695137-0-7