Humber/Ontario Real Estate Course 3 Exam Practice

If Seller Brooks is hesitant to complete an SPIS, what is a valid consideration?

1. Completion of the form is mandatory by real estate ethics for all sellers.

2. His concern is valid as it requires disclosures beyond legal mandates.

3. The form must be filled out but is only available to offer-making buyers.

4. The agent cannot effectively represent without a completed SPIS.

The correct answer is: His concern is valid as it requires disclosures beyond legal mandates.

The correct answer highlights that Seller Brooks' concern is valid because completing a Seller Property Information Statement (SPIS) requires disclosures that go beyond the basic legal requirements. In many jurisdictions, while there are mandatory disclosures that sellers must comply with to inform potential buyers about the condition of the property, the SPIS is a more detailed document. This form often requests information that may not be strictly required by law but can provide buyers with greater insight into the property's history, condition, and any known issues. By acknowledging Brooks' hesitation, it recognizes the implications of the form and respects his right to privacy and discretion concerning the provided information. Hence, understanding the distinction between legal obligations and the additional disclosures requested in an SPIS is crucial for both sellers and agents in the real estate process. The context surrounding this choice helps illustrate why it is important for a seller to consider the implications of completing the SPIS, as it may expose them to greater liability if they disclose information that is not legally mandated.