Ontario Modernizing Rules Governing Province’s Real Estate Services Sector
November 28, 2023
The Ontario government is updating rules governing the province’s real estate brokerages, brokers, and salespersons to strengthen consumer protection, educate home buyers and sellers, and enhance professionalism.
The new rules, effective December 1, 2023, will give Ontarians more choice in the real estate trade process by allowing a brokerage to disclose the details of competing offers. They also include an updated Code of Ethics to strengthen professional obligations related to integrity, conflict of interest and the prevention of fraud.
Phase 2 of legislative and regulatory changes introduced under the Trust in Real Estate Services Act (TRESA), 2020, will modernize the province’s real estate market by:
- Allowing real estate brokerages to disclose details of competing offers if the seller directs them to do so, excluding personal or identifying information.
- Better protecting and educating Ontarians through enhanced disclosure requirements for real estate brokerages, brokers and salespersons (known as registrants) and the development of an information guide to help individuals make informed decisions when they trade in real estate.
- Requiring registrants to comply with an updated Code of Ethics that strengthens professionalism by focusing on their obligations related to integrity, quality of service and conflicts of interest.
- Providing the Real Estate Council of Ontario (RECO) with new powers and tools to better hold registrants accountable for non-compliance with the rules.
- Allowing brokerages to enter designated representation agreements so clients could be represented by a specific broker or salesperson at a brokerage who would actively promote their interests in a trade.
News Releases;
EN: Real Estate Services Sector Rules
FR: Règles applicables au secteur des services immobiliers