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TRESA Resources & Guidance
The Government of Ontario implemented the Trust in Real Estate Services Act (TRESA) Phase 2 regulations on December 1, 2023. OREA’s Member guidance helps REALTORS® and brokerages understand the new regulations and incorporate the changes. For detailed information and practical tips on adapting to the updated OREA Forms, visit the Forms Hub.
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This article details how the new legislation will impact REALTORS®. To see how these changes will affect Standard Forms please visit The Forms Knowledge Hub.
Background
OREA has been calling on the Government of Ontario to allow for designated representation since 2017. We took that position when the previous Liberal government was consulting on a multiple representation ban. Instead of a ban, OREA proposed a model which would permit two agents at the same brokerage to represent both a buyer and seller in a single transaction.Q: What is multiple representation and why is OREA calling for its optional practice in Ontario?
Definition of Designated Representation
Designated representation is not anything new as a business model because it is used by brokerages in other provinces, like Alberta and Nova Scotia. It allows a brokerage practicing designated representation to have the option to work with both the buyer and the seller in a single transaction. The proposed model of designated representation says that the duty owed to the clients would apply to the designated agents within a brokerage for the specific, identified transactions, not the brokerage and all of its REALTORS®.
Example
ABC Realty Inc. has a listing, and the brokerage also happens to represent a buyer that is interested in that listing. In other words, the brokerage represents the seller and the buyer. Today, that is known as multiple representation. In the proposed designated representation model, the listing agent would be able to represent the seller, while another agent at ABC Realty Inc. would represent the buyer on behalf of the brokerage to advocate solely for the buyer. The Brokerage would retain oversight responsibility for the designated agent's fulfillment of the duties to the clients.
Q: Why is designated representation a good practice for both REALTORS® and consumers?
Key Points
Q: What happens under TRESA when a brokerage represents both a seller and a buyer in multiple representation?
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This article details how the new legislation will impact REALTORS®. To see how these changes will affect Standard Forms please visit The Forms Knowledge Hub.
Definition of Self-Represented Party (SRP)
Under REBBA, there were two definitions which REALTORS® had to know – client and customer. The Ministry felt that these two terms were confusing for the public, so the term customer was removed entirely from TRESA. Under TRESA, there are two terms – client and self-represented party (SRP). An SRP is simply a party who is not a client of any brokerage.
Q: Where can I find the Information and Disclosure to Self-Represented Party Forms?
Q: Why is the government introducing the new consumer designation of ‘self-represented party’, effectively eliminating the customer relationship, and why is this ultimately better for consumers?
Q: How does the new self-represented party designation differ from the customer designation that currently exists under REBBA?
Example
There are two instances where a self-represented party (SRP) could interact with the REALTOR® without the interaction giving rise to an implied agreement between the REALTOR® and the SRP.
First, an SRP can receive general information relating to the business of trading and real estate, like general real estate market statistics. Second, a REALTOR® could provide assistance to an SRP if that assistance is a service to their client, for example, as the seller’s representative showing that listing to an SRP. However, the SRP has engaged for services only, not a duty of care. Should the SRP wish to purchase the property, the REALTOR® is not permitted to provide any advice, otherwise you have created unintended agency by the SRP relying on your skill and judgment.
Q: Is there a list of activities that represents the "assistance" that is allowed to be provided to a self-represented party under TRESA?
Key Points
How to engage with a self-represented party
Per Section 10 of the Code of Ethics, REALTORS® will be prohibited from providing services, opinions or advice to an SRP.
However, as a service to the REALTORS® client, assistance may be provided to an SRP after:
Q: Do you have any advice on how to convert a self-represented party into a client?
What is the SRP acknowledgement form and how do I execute this form?
Q: If there is no representation agreement with a self-represented party, are they required to sign anything during a real estate transaction?
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This article details how the new legislation will impact REALTORS®. To see how these changes will affect Standard Forms please visit The Forms Knowledge Hub.
Definition of Transparent Offer Process
In TRESA, sellers have another option to negotiate the sale of their property. If the seller directs the brokerage, the TRESA general regulations allow for the details of competing offers to be shared with other buyers. No personal information may be disclosed or any other information that would identify the person making the offer. It is important to note that it will still be a requirement for a brokerage to disclose the number of registered offers to competing buyers.
Q: What happens if the seller decides to change their mind halfway through the transaction and goes from a closed to a transparent offer process or vice-versa? Can the buyer withdraw their offer?
Q: What type of information can a seller disclose to other buyers during a transparent offer process transaction?
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This article details how the new legislation will impact REALTORS®. To see how these changes will affect Standard Forms please visit The Forms Knowledge Hub.
TRESA implements some changes to the contents of written agreements and outlines new requirements for disclosures.
Q: What are the new rules surrounding disclosures under TRESA?
Key Points
Listing agreement and the remuneration payable to any other brokerage
Q: What changes can we expect to the contents of written agreements under TRESA?
Services provided by a brokerage or designated representative and the expiry date of the agreement
TRESA requires disclosures on:
TRESA regulations also require:
Q: What are common examples of disclosures in a real estate transaction and are there any new disclosures that are required to be made under the Act?
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This article details how the new legislation will impact REALTORS®. To see how these changes will affect Standard Forms please visit The Forms Knowledge Hub.
The Real Estate Council of Ontario (RECO) provides the information guide for consumers. The information guide prepared by RECO is mandated and is the only acceptable version of the information guide. Brokerages are not permitted to create their own information guide.
Q: What is the new information guide and when should I give it to my real estate consumer?
Key Points
Q: Where does the information guide come from, and do real estate consumers have to acknowledge its receipt in any way?
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This article details how the new legislation will impact REALTORS®. To see how these changes will affect Standard Forms please visit The Forms Knowledge Hub.
Updates to the Code of Ethics
The new TRESA Code of Ethics have been updated so that the ethical requirements are retained within the Code but all of the technical and procedural requirements have been moved to the general regulations or other regulations. This means that the Code of Ethics truly articulates the requirements that REALTORS® must comply with related to integrity, quality of service and conflicts of interest. As a result, the new Code of Ethics is much smaller compared to the old.
Q: What are some of the changes that we can expect from the new REALTOR® Code of Ethics under TRESA?
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This article details how the new legislation will impact REALTORS®. To see how these changes will affect Standard Forms please visit The Forms Knowledge Hub.
Changes to RECO’s Discipline Process
The introduction of TRESA was a result of OREA’s own advocacy to set the highest real estate standards in North America and to crack down on bad actors in our profession. In addition to the new legislative and regulatory standards enacted by TRESA, the scope of RECO’s discipline committee was expanded.
Key Points
The RECO discipline committee will now have the ability to:
The composition of the discipline committee consists of five or more members and at least one of those members must have no connection to the real estate industry. Any appeals of RECO discipline committee decisions will be to the License Appeal Tribunal (LAT), an independent quasi-judicial tribunal, rather than RECO’s appeals committee. The resulting discipline, including the reasons for revocation or suspension of a registration, will be made available to the public.
Updates to the RECO Discipline Process (PDF)→08
This article details how the new legislation will impact REALTORS®. To see how these changes will affect Standard Forms please visit The Forms Knowledge Hub.
The Importance of TRESA
Q: What is the significance of TRESA regulations, not only for Canada, but specifically the province of Ontario?
Updates to Registration Status
Under TRESA, real estate professionals can now relate to the terminology consumers have always used. Anyone in good standing with the Canadian Real Estate Association (CREA) can use the term REALTOR®in their ads and social media platforms.
Q: How is the registration status different under TRESA?
Updates to Drip Campaigns
Many REALTORS® send new listings to prospective buyers via a ‘drip campaign’. Under the new TRESA, this practice of sending listings to a prospective buyer in real time would continue to be permitted.
Q: Have the rules around ‘drip campaigns’ for prospective buyers changed under TRESA?
REACH OUT
TRESA QUESTIONS?
OREA's REALTOR® in Residence Ray Ferris has answers! Whether you need clarification around the new offer process options, or have a question about how designated representation will work at your Brokerage, OREA has your back.
Get In TouchOREA AI Assistant