Blog > Should You Sign the SPIS in Ontario? What Most Markham Sellers Don't Know
Should You Sign the SPIS in Ontario? What Most Markham Sellers Don't Know
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Should You Sign the SPIS in Ontario? What Most Markham Sellers Don't Know
OREA says yes. RECO says yes. Almost every Ontario real estate lawyer says no. Here's why — and what I recommend to my Markham sellers. As a top Markham REALTOR® and CPA, I've seen how this one form can trigger lawsuits, kill deals, or protect your equity. Let's cut through the confusion.
The SPIS Conflict: Why Everyone Disagrees
The Seller Property Information Statement (SPIS) is a 4-page form asking sellers to disclose everything from roof leaks to neighbor disputes. It sounds simple. But in practice, it's one of the most legally dangerous documents in Ontario real estate.
The Official Stance: OREA (Ontario Real Estate Association) and RECO (Real Estate Council of Ontario) state the SPIS is optional but "recommended" for transparency. Many brokerages encourage its use to demonstrate good faith.
The Legal Reality: Nearly every major Ontario real estate law firm — including Merovitz Potechin, Larson Lawyers, McDadi & Associates, Cheadles LLP, and Alloway LLP — advises sellers to decline signing the SPIS. Why? Because once signed, it becomes evidence in court if a buyer later claims misrepresentation.
What the SPIS Actually Asks (And Why It's Risky)
The form contains 30+ questions covering:
- Structural issues, water damage, or foundation problems
- Renovations done without permits
- Boundary disputes or easements
- Environmental hazards (asbestos, mold, underground oil tanks)
- Neighborhood nuisances (noise, construction, commercial zoning)
- Insurance claims or insurance refusals
The Trap: If you answer "No" to a question and the buyer later discovers the issue was present (even if you genuinely didn't know), you can be sued for negligent misrepresentation. Ontario courts have awarded damages exceeding $100,000 in SPIS-related cases.
Example: A Markham seller checked "No" to "Are you aware of any water penetration?" Three months post-closing, the buyer found minor basement seepage during heavy rain. The court ruled the seller should have known, awarding $47,000 in repairs + legal fees.
What Ontario Lawyers Recommend (And Why)
Based on guidance from leading Ontario real estate law firms:
⚖️ Why Lawyers Say "Don't Sign"
- Limited Protection: The SPIS includes a disclaimer stating it's "not a warranty," but courts have repeatedly ruled this doesn't shield sellers from liability.
- Memory Isn't Evidence: Questions like "Have you ever experienced flooding?" rely on subjective recall. A buyer's inspector may find evidence you never noticed.
- Amplifies Discovery: Signing the SPIS gives buyers a checklist to investigate. Every "No" becomes a target for post-closing claims.
- Alternative Exists: Ontario law already requires sellers to disclose latent defects (hidden issues affecting habitability). The SPIS adds little legal value but significant risk.
When Signing the SPIS *Might* Make Sense
While most lawyers advise against it, there are narrow scenarios where signing could benefit a Markham seller:
✅ Consider Signing If...
- Your home is newer (<10 years) with documented maintenance records
- You've completed all renovations with permits and inspections
- You're selling in a slow market and need every competitive edge
- Your buyer specifically requests it and you've consulted your lawyer
- You have professional inspection reports to attach as supporting evidence
❌ Decline Signing If...
- Your home is 20+ years old or has had past repairs
- You're unsure about permit status for any renovations
- You've experienced any water issues, even minor
- The property has unique features (pool, suite, large deck)
- You want maximum legal protection post-closing
The Markham-Specific Risk Factors
Markham properties carry unique disclosure considerations:
Many Markham homes have basement suites, kitchen upgrades, or additions. If permits weren't pulled (common pre-2015), checking "No" to "Unpermitted work?" creates liability even if you didn't know.
Markham's clay soil and aging infrastructure mean minor drainage issues are common. A "No" answer to water questions can be challenged after one heavy rainfall post-closing.
Properties in Unionville, Markville, or older Cornell streets may have heritage designations or zoning restrictions sellers aren't aware of — but the SPIS asks directly.
Markham buyers are often well-informed and legally advised. A signed SPIS gives their lawyer a roadmap for post-closing claims if any issue emerges.
The Safer Alternative: Strategic Disclosure
You can protect yourself AND maintain transparency without signing the SPIS:
- Disclose Latent Defects Verbally: Ontario law requires disclosure of hidden issues affecting habitability. Document these conversations with your agent.
- Provide Professional Reports: Share pre-listing inspections, roof certifications, or HVAC servicing records. These are factual, dated, and limit subjective interpretation.
- Use the Listing Remarks: Your agent can note known issues in the MLS description ("Seller discloses basement seepage in 2022, repaired by XYZ Waterproofing") without creating a signed legal document.
- Consult Your Lawyer Early: Before listing, have your real estate lawyer review your property history and advise on disclosure strategy specific to your home.
My Recommendation as Your Agent: I advise my Markham sellers to decline the SPIS unless we've jointly reviewed every question with their lawyer and attached supporting documentation. Transparency doesn't require signing a form that courts have used against sellers. We achieve full disclosure through professional reports, clear listing remarks, and documented conversations.
What Happens If You Decline the SPIS?
| Concern | Reality | Our Strategy |
|---|---|---|
| "Buyers will think I'm hiding something" | Most experienced buyers expect SPIS declines. It's common in competitive markets. | We proactively explain: "To protect both parties, we rely on professional inspections and documented disclosures." |
| "My agent says I should sign" | Many agents follow brokerage policy, not legal advice. Always verify with your lawyer. | I coordinate directly with your real estate lawyer to align strategy before listing. |
| "The buyer insists on it" | Buyers can request anything. You can decline while offering alternative documentation. | We provide pre-listing inspection reports, warranty docs, and written disclosures via lawyer-reviewed addendum. |
| "Won't this hurt my sale price?" | No data shows SPIS signatures increase sale price. Proper pricing and marketing drive value. | We focus on staging, professional photography, and strategic pricing — not risky paperwork. |
Real Markham Cases: What Actually Happened
📍 Case 1: Unionville Semi-Detached
Situation: Seller signed SPIS, answered "No" to foundation issues
Outcome: Buyer's inspector found minor crack post-closing; lawyer argued seller "should have known"
Result: $28,000 settlement + legal fees. Seller had never been notified of the crack.
📍 Case 2: Cornell Detached Home
Situation: Seller declined SPIS; provided 2024 roof certification + pre-listing inspection
Outcome: Buyer requested additional inspection; all issues documented pre-offer
Result: Clean closing, zero post-closing claims, seller retained full equity
📍 Case 3: Markville Bungalow
Situation: Seller signed SPIS after agent encouragement; disclosed "minor" basement dampness
Outcome: Buyer's lawyer argued "minor" was subjective; claimed full waterproofing needed
Result: 14-month legal dispute; seller paid $19,000 despite believing disclosure was accurate
Want a 1-Page SPIS Decision Guide?
Comment SPIS below or text me direct — I'll send you a 1-page disclosure decision guide reviewed by my real estate lawyer. As Markham's top REALTOR® with CPA designation, I'll help you navigate disclosure strategy that protects your equity while maintaining buyer trust.
🏆 Michael John Lau — Awards & Recognition
Michael John Lau is a licensed REALTOR® serving buyers, sellers, and high-net-worth clients in Markham, Ontario and the Greater Toronto Area. Information regarding the SPIS, legal liability, and disclosure requirements is based on guidance from RECO, OREA, and Ontario real estate law firms including Merovitz Potechin, Larson Lawyers, McDadi & Associates, Cheadles LLP, and Alloway LLP as of Q2 2026. This guide does not constitute legal advice. All sellers should consult with a qualified Ontario real estate lawyer regarding their specific disclosure obligations and risk tolerance. Laws and court interpretations are subject to change. Not intended to solicit clients currently under contract with another brokerage.
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