Humber/Ontario Real Estate Course 4 Exam Practice

When a seller is asked to fill out a seller property information statement (SPIS), which of the following is accurate?

1. Seller is obliged to complete the form as per ethical requirements.

2. Seller's concerns are valid as the SPIS involves additional disclosures beyond legal requirements.

3. Seller must fill out the form, but it is only visible to buyers making offers.

4. Seller should be informed that effective representation is impossible without the SPIS.

5. Seller should be discouraged from completing the form due to potential legal consequences.

6. Seller must consult a lawyer before completing the form.

The correct answer is: Seller's concerns are valid as the SPIS involves additional disclosures beyond legal requirements.

The statement that accurately reflects the situation regarding the Seller Property Information Statement (SPIS) is that the seller's concerns are valid as the SPIS involves additional disclosures beyond legal requirements. The SPIS is designed to provide potential buyers with detailed insights about the property that go beyond what is mandated by law. This includes information regarding the condition of the property, past repairs, and other pertinent details that could affect a buyer's decision. Due to the nature of the SPIS, sellers may feel apprehensive about disclosing certain information, as they might worry it could impact their sale or expose them to potential liability if the property has undisclosed defects. Understanding that the SPIS is more than just legal compliance and involves a deeper level of transparency may help sellers appreciate the purpose of the form. This highlights their concerns regarding additional disclosures and the implications of sharing more information than they might be legally required to do.