OREA Real Estate College

SPIS: An OREA Best Practice

It’s not a warranty. It’s not even a legal requirement. It’s simply a form (OREA Standard Form 220) that may prevent a future potential dispute about a property defect following the completion of a real estate transaction.

Completed by the seller, the Seller Property Information Statement (SPIS) provides information about a property in three areas – general information, environmental, and improvements and structures.

General information questions deal with third party ownership interests, leases, easements, encroachments, surveys, zoning, restrictive covenants, and taxes. Environmental questions deal with possible soil contamination, flooding, oil tanks, and grow houses. Improvements and structures questions deal with known structural problems, renovations and any moisture and/or water problems.

When completed accurately, the SPIS protects the seller, the buyer, and the REALTOR®.

How the SPIS protects the seller:

→ ensures all information about the property is disclosed, including known defects or other problems

→ demonstrates to potential buyers that the seller has nothing to hide

→ may prevent possible legal action because known defects or problems are disclosed

How the SPIS protects the buyer:

→ provides information in an orderly and consistent manner

→ provides information on which to base a purchasing decision

How the SPIS protects the REALTOR®:

→ diminishes the chance of serious problems that can delay closing or lead to litigation

→ may prevent possible legal action because known defects or problems are disclosed

If an SPIS is completed:

→ the seller’s REALTOR® must review the SPIS with the seller and ascertain the information contained therein is accurate

→ the seller’s REALTOR® must disclose its existence to the buyer, unless otherwise instructed by the seller (Section 20, REBBA Code of Ethics)

→ the buyer’s REALTOR® must request a copy of the SPIS

→ the buyer must still make his/her own enquiries regarding the property (e.g., home inspection)

Finally, a completed SPIS is considered a best practice by OREA.

For More Information

OREA Real Estate College – Continuing Education (online) Course – http://www.orea.com/en/OREA-Real-Estate-College/Continuing-Education/e-Learning-Courses/SPIS-Dont-Leave-the-Office-Without-It.

OREApedia – http://www.orea.com/en/Members/OREApedia/Seller-Property-Information-Statement-SPIS

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