Seller Property Information Statements

There are varying opinions about the legal implications of a Seller Property Information Statement (SPIS). The SPIS is a valuable tool for potential buyers and can eliminate a lot of otherwise tedious question for sellers. Are there any problems with the water? When was the roof last shingled? Is the basement dry? Are there any structural problems? So on, and on, and on.

But by using a pre-printed form that addresses the issues that many home purchasers may have eliminates the need to answer these innocuous questions. By disclosing information up front you also eliminate some of the liability of the home sale. The issues that you do disclose are now buyer-beware issues therefore removing the liability of the issue from yourself, the home seller.

Although the forms will vary the same general information is included in them. Information concerning your homes structure, water supply, septic system, and an area to describe any upcoming local improvements.

Your disclosure needs to be to the best of your knowledge. Realtors and homeowners we have a limited knowledge of the construction of a home. We are not licensed contractors, plumbers or electricians. Most of us can identify issues such as a collapsing foundation, leaking roof, or faulty wiring or plumbing. Obvious issues such as mould are readily visible as well. Identifying that there is an issue will eliminate this as a potential reason to terminate a sale as well. Upon inspection of the property in will terminate this as an arguing point because the disclosure was made prior to the inspection.

Water supply is obviously more of an issue for rural properties. Ensuring that the water is safe to drink and there is enough water to supply the household will be important to potential buyers. Disclosing issues such as the GPM (Gallons per minute) of your well, and ensuring that it drinkable is imperative prior to listing your home for sale. Many financial institutions have a minimum GPM requirement before they will advance funds for the sale.

Septic systems are also an important component in rural properties. How often is it pumped? Are you aware of any issues? Is the system adequate for the household needs? Proper disclosure here can save you quite a few future headaches.

Finally as a resident in the house you have been informed prior to any new construction in the area. Items such as road improvements, new housing developments, or any other significant community upgrades can alter a potential buyers opinion of value. With local improvements there is often a fee for service that is added onto the property taxes. Disclosing this prior to the offer will eliminate it as a point for argument.

Ultimately the SPIS is a tool to disclose and protect potential buyers from potential issues with the home. However it also protects the vendor from the potential for liability if these issues are either hidden or not disclose prior to the sale.