Short answer
A Seller Property Information Statement can reveal useful history, but it reflects the seller’s knowledge and the questions asked. It is not a warranty that every answer is complete or that no defect exists. Read every response and qualification, compare it with inspection and records, ask follow-up questions, and have the lawyer review any statement that materially affects the purchase.
The buyer concern behind the question
The buyer sees “No” beside a problem and stops investigating. Later, the seller says they were unaware, misunderstood the question or disclosed only what they personally knew.
A practical Ontario example
Illustration only: The statement says the seller is not aware of water problems, while an inspection finds older staining. The buyer asks when it occurred, who repaired it, whether insurance was involved and whether invoices or reports exist rather than treating either document as conclusive.
Questions to ask before becoming firm
- Was the statement intended to be shared with buyers?
- When was it completed and by whom?
- Which answers are unknown, qualified or inconsistent with other evidence?
- What follow-up documents support important representations?
- Should a relied-upon representation be included in the agreement?
Practical routes to compare
- Use the statement as a map for investigation, not as a substitute for it.
- Compare it with the inspection, listing, permits and lawyer’s title work.
- Ask the lawyer how reliance and wording should be documented.
What each professional can and cannot decide
The Realtor investigates and communicates property facts within the real-estate mandate and advises on offer strategy. The inspector or specialist assesses condition within a defined scope. The lawyer interprets disclosure duties, title, contract language, evidence and remedies. The insurer decides coverage. The appraiser reports value and marketability for the assignment. Rajiv tests qualification, lender property acceptance and closing consequences. RECO regulates Ontario real-estate professionals; it does not set lender underwriting policy. FSRA regulates mortgage-brokering conduct and certain financial sectors; it does not approve the mortgage or create one universal lender policy.
Mortgage and closing consequences
Changed property facts can affect usable rental income, appraisal, insurance, marketability, repair conditions and the amount a lender will advance. Start with a suitable A lender when the borrower and property meet policy. An alternative lender may take a broader view at a higher rate and fee, but still needs acceptable property and evidence. An institutional MIC or private lender may provide a flexible short-term route, including interest-only, amortized, open, partly open or maturity-matched structures in some cases. That route is not an automatic rescue: equity, total cost, legal advice and a credible exit back to suitable A or B financing must be tested.
Verified public guidance
RECO says a property information statement may be prepared for an agent or for buyers. If intended for buyers, its existence must be disclosed to interested buyers and a copy supplied on request; its contents remain based on the seller’s knowledge and experience.
Read the primary source. Source checked 2026-09-03. The regulator explains professional obligations and consumer considerations; the lawyer determines legal advice and each lender and insurer applies its own policy.
Pressure-test this answer
The answer may change if the seller did not know the fact, the concern was visible, the buyer received warning signs, the wording was only marketing opinion, records contradict the statement, the defect was concealed, or the agreement allocates the risk differently. A representation can also be important without creating the remedy a buyer expects. Ask what is known, what is assumed, what evidence is missing and which professional is qualified to decide it. Before waiver, compare the cost of investigation with the buyer’s worst reasonable post-closing exposure. After a firm agreement, let the lawyer direct the response.
Evidence and documents to keep
- Listing, photographs, virtual tour and feature sheets
- Offer, schedules, amendments and condition deadlines
- Seller information statements and written questions and answers
- Inspection, specialist, municipal, permit and insurance records
- Rental or service contracts, invoices and warranties
- Emails, texts, appraisal or lender requirements and lawyer correspondence
Related AskRajiv guidance
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Get the property facts aligned with the mortgage
Use Rajiv’s direct mortgage strategy form. Include the property concern, purchase price, closing date, current conditions and documents already available.
Source and review
Reviewed by Rajiv Verma, Mortgage Broker on 2026-09-03. Educational information only; not legal, real-estate, inspection, engineering, environmental, insurance, appraisal or mortgage approval advice.