Does the seller's property information statement replace an inspection in Ontario?

No, the seller's property information statement does not replace a home inspection. The two serve different purposes, and RECO, which regulates real estate agents and brokerages in Ontario, calls a home inspection one of the most common conditions in an offer to purchase a property.

RECO notes that a seller completing the statement may not be aware of property defects, and that the information it contains is based only on their personal knowledge.

A home inspection, as ontario.ca describes it, is an on-site, in-person visual examination of a home's condition and structure. An inspector looks at the foundation, roof, exterior walls, attic, plumbing and electrical systems where visible, heating and air conditioning, ceilings, walls, floors, insulation where visible, ventilation, and drainage away from the building, among other items. That is a different kind of information from a seller's written answers to a questionnaire.

There are things neither document can tell you. Ontario.ca is direct that a home inspection is not a pass or fail test, does not assess whether a home meets zoning or building codes, and does not come with a warranty or guarantee on the home's condition. An inspector also cannot see or find everything; mould is one example ontario.ca gives, and a snow-covered roof is another. So the statement and the inspection each have gaps, and they are different gaps.

RECO's advice to buyers is to make an offer conditional on a home inspection where possible, and to think carefully before waiving that condition even when there are competing offers. Foregoing an inspection, RECO says, is a significant risk that a buyer needs to carefully consider.

After an inspection, ontario.ca lists the options open to a buyer: ask the seller to make certain repairs, accept a defect and deal with its consequences, ask for a price adjustment, or not buy the home. How any of those plays out in a specific transaction is a question for your agent or lawyer, who can explain what your signed offer actually allows you to do.