Holiday Closure

The OREA office will close for the holidays at 12 p.m. Tuesday, December 24th.  Normal business hours will resume on Thursday, January 2nd.  Happy Holidays!

Holiday Closure

The OREA office will close for the holidays at 12 p.m. Tuesday, December 24th.  Normal business hours will resume on Thursday, January 2nd.  Happy Holidays!

March 5th - 2006

Curriculum changes under REBBA, 2002

REALTORS need to learn about REBBA 2002–which comes into effect March 31 – and what the changes to the Act and the Code of Ethics will mean to them.

REALTORS need to learn about REBBA 2002–which comes into effect March 31 – and what the changes to the Act and the Code of Ethics will mean to them. To help prepare members and students for the new regulations, the OREA Real Estate College has been busy making the many necessary changes to its registration education and continuing education curriculum.

The RECO Real Estate Update has been substantially revised to reflect the changes. As well, OREA instructors have undergone comprehensive training sessions to learn the new curriculum. REBBA 2002 has also meant revisions to all of the print and electronic materials used in the courses including the Real Estate Encyclopedia and course workbooks.

Big changes
Some of the more significant changes that will affect REALTOR’s day-to-day activities include the replacement of the word “agency” with “representation” in the new Code of Ethics and more detailed disclosure responsibilities than ever before. According to RECO, registrants will need to fully understand the meaning of terms “client”, “customer” and “representation agreement.”

Under the new regulations, registrants will be required to make several disclosures to clients and customers regarding the services they will provide. “One of the biggest complaints from consumers is that their REALTOR isn’t communicating enough with them,” says RECO Real Estate Update instructor, Lou Radomsky. “Now the Code requires that you inform your clients and customers of all the significant steps you’ve taken and what you have done for them.”

Radomsky says the old statute didn’t recognize some of the different types of representation that occur in real estate transactions today. Under the new Act any agreement that has a client in place is called a “Representation Agreement” and is an agreement between the brokerage and a client. “There’s also no more reference to dual agency anywhere in the statute or the Code,” he says. “The term multiple representation is in its place.”

Under the new Act, registrants are required to make several disclosures to clients and customers regarding the services they provide – particularly when multiple representation occurs. RECO hopes the new disclosure requirements related to multiple representation will minimize consumer confusion about how a registrant conducts himself or herself in situations where they are representing or providing services to more than one party in a transaction. They will also have to make it clear to buyers and sellers that they cannot represent multiple clients in a transaction unless all of the potential clients consent in writing.

Ownership rules
Another major change that concerns brokerages is the rule regarding ownership. Under REBBA 2002, brokerages are no longer required to be 51 per cent owned by registered brokers. The restrictions limiting non-registrants to holding no more than 10 per cent of the voting shares of a corporate brokerage have also been eliminated. Now corporate brokerages can be owned by non-registrants provided they meet all the conditions to successfully register the brokerage, such as employing a “Broker of Record” to ensure the brokerage complies with the act.

On top of the new disclosure requirements and terminology changes, REALTORS will need to become familiar with a variety of other significant changes including: new requirements related to the operation of trust accounts; new prohibitions regarding registrants falsifying information; a new requirement for insured status to become public information; and new requirements related to record retention.

REALTORS are encouraged to familiarize themselves with all of these new requirements to ensure they can conduct their businesses accordingly. Even if you’ve taken the previous RECO Real Estate Update course, consider enrolling in the new course which is based on the new regulations and Code. RECO is also producing a handbook (with a CD-ROM) that will be distributed to all registrants this spring. The RECO website www.reco.on.ca is another source for information about REBBA 2002 and the new Code of Ethics. If you’d like to find out about upcoming RECO Real Estate Update courses, contact the OREA Real Estate College or your real estate board.

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For more information contact

Ontario Real Estate Association

Jean-Adrien Delicano

Senior Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246

Ontario Real Estate Association
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The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.

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