Michael, a real estate salesperson, is presenting an offer for his buyer client, Sarah, to the seller. The seller mentions they filled out a Seller Property Information Sheet (SPIS) when they first considered selling a year ago, but have lost it. They ask Michael if they need to complete another one. What should Michael advise the seller?

Question: Michael, a real estate salesperson, is presenting an offer for his buyer client, Sarah, to the seller. The seller mentions they filled out a Seller Property Information Sheet (SPIS) when they first considered selling a year ago, but have lost it. They ask Michael if they need to complete another one. What should Michael advise the seller?

Answer options:

• That completing an SPIS is mandatory for all residential sales in Ontario. ✅ That while not legally required, it's highly recommended to complete an updated SPIS to disclose known material latent defects and avoid potential liability.
• That they only need to complete one if the buyer specifically requests it.
• That they can simply verbally disclose any known issues instead.

Correct answer: That while not legally required, it's highly recommended to complete an updated SPIS to disclose known material latent defects and avoid potential liability.

Explanation: While the SPIS is not mandatory, RECO often recommends its use, and it is a best practice for sellers to complete an updated SPIS to disclose known material latent defects and potentially reduce their liability, as misrepresentation can lead to costly litigation.