Seller Property Information Seller Property Information Statement SPIS

Seller Property Information

Seller Property Information Statement (SPIS) � Widely used in residential properties � If a client has filled out a SPIS, broker is obligated to inform every interest buyer of its existence and must also make it available upon request, unless the seller directs otherwise � For instance, Jen of ABC Realty lists a property for her client. The client fills out an SPIS but Jen misplaces it and forgets about it. The buyer purchases the property and finds $20, 000 worth of damage. The buyer sues the seller, but the seller says that SPIS had disclosed this fact. Jen will be held liable in this case.

Cottages/Related Properties � Shore Road Allowance This is not an actual road It is a road allowance that is rarely opened It is opened for commercial pursuits & public passage Fact that a shore road allowance has not been opened does not negate public’s right to use them or their legal status ◦ Shore road allowances are 66 feet in width from high water mark of navigable rivers ◦ Townships that were surveyed before 1850 (mostly in eastern and southwestern Ontario) do not have road allowances ◦ Existence of shore allowance appears on property deed ◦ ◦

Cottages/Related Properties ◦ Structures on many waterfronts are constructed on road allowances �The actual cottage may also encroach onto the shore road allowance – something that can only be confirmed through obtaining legal expertise and looking at surveys ◦ The Ministry of Natural Resources instated a Boathouse Lease Program that charges rent to Boathouses situated on public land �Boathouse owners must enter into lease agreements �They must pay for registering the lease on title and any associated costs �The Ministry is focusing in particular on boathouses with living accommodation/second story construction

� Sewage ◦ ◦ ◦ ◦ ◦ Sewage Tanks/Septic Systems These become outdated over time They must be adequate to handle current demands They may stop operating properly New septic tank installations come under Ontario Building Code Before septic tank is installed and approved, Approval Certificate is required Permit required for both new and old structures Buyer should insist on seeing this documentation Old cottages that were constructed as seasonal residences and have been expanded may require new systems that have additional capacity Size is determined by number of bedrooms, total finished area and total number of fixtures

Sewage Tanks ◦ The most common septic problem involves absorption (leeching) bed �Special emphasis should be paid towards raised absorption beds, which are constructed above existing terrain and is part of a sewage system that uses approved special filters and/or imported soil �Raised leeching beds are smaller and more efficient than conventional leeching bed systems ◦ Distance (clearance) from adjacent wells and structures �Raised absorption beds should be away by structures and wells by an amount that is equal to 2 units horizontal for each unit vertical height of the surface of the leeching bed �This instance, if clearance to a well is 15 meters for a standard leeching bed then a raised absorption bed requires at least 30 meters clearance

Sewage Tanks ◦ Raised beds are needed in case of: �Rocky terrain �Poor percolation because of soil conditions �Inadequate drainage ◦ Raised beds life expectancy = 25 -35 years = same as standard leeching beds, but both their lifespans depend on use and circumstances ◦ The Department of Local Municipality can be contacted for information about installation requirements, structures, property lines, minimum distribution pipe clearance, wells and other water sources

Sewage Tanks � Wells ◦ Bacteria can enter water supply during repair or construction process ◦ Cottage-owners should know how to prevent contamination of their well �Using durable materials to seal outdoor openings �Making sure well casings below grade level raised to a minimum of 40 CM above grade �Ensuring that the well casing is visible for ease of access in case it needs to be repaired in the future �Making sure that all connections are watertight and property sealed

Sewage Tanks � Disinfection ◦ Must be done once all defects and constructions have finished (final step) ◦ Chlorinated household bleach is poured into the well – amount depends on depth of the well ◦ Taps and faucets opened in cottage till chlorine can be smelled inside the cottage ◦ Once you can smell it, close the taps and let the water stay for at least six hours to kill bacteria ◦ This is followed by bacteriological test of water �Until the test results arrive, you must boil all water before using it ◦ Ropes, electrical cables, pipes, wells and plumbing lines are all disinfected through this process

Sewage Tanks �A buyer is buying a property that has a well. He has concerns about the well. The salesperson should put a water condition in schedule A. This should include: ◦ There is an adequate water supply to meet the needs of the buyer’s household ◦ There is no significant evidence of bacteriological issues ◦ Pump and all other related equipment is in proper functioning condition

Underground (Fuel) Storage Tank � These tanks are either fully or partially buried in the ground – it touches the ground � They oil which is used to operate boilers and furnaces � They must be registered with the Technical Standards and Safety Authority (TSSA) or else fuel cannot be delivered to the tank � TSSA regulates: ◦ Installation, testing, maintenance, repair, removal, inspection, equipment, appliances, components and accessories � Contractors working on underground tanks must be registered with TSSA

Underground (Fuel) Storage Tank � An unused underground tank must be removed by TSSA-registered contractor, and any contamination must be cleaned up ◦ This is an expensive environmental clean-up since leakage can contaminate soil and groundwater � If a leak occurs, owner must call a registered fuel oil contractor to stop a leak and clean up the contamination and call the Spills Action Centre of the Ministry of the Environment

RECAP � Oil tank related environmental concerns arise when purchasing a residential property � There may be an environmental concern even if you have a visible oil furnace with no visible tank

Underground (Fuel) Storage Tank � Thousands of tanks were buried with no record regarding their locations � Disclosure must be made regarding tanks: ◦ Underground tank problems are costly ◦ If seller hides an underground tank while selling property, they may face legal action in the future ◦ If tank leaks and damages neighboring properties, owner of the tank will be responsible ◦ Salesperson should ask the seller if there is a tank, inspect it, contact TSSA if necessary and disclose its existence to the buyer ◦ Existence of tank does not automatically threaten a real estate transaction but proper procedure should be followed