05 Jan Changes in Ontario Real Estate Services
Changes in Ontario Real Estate Services – Trust in Real Estate Services Act
The Real Estate and Business Brokers Act (REBBA) has been updated by the Real Estate Council of Ontario (RECO). The new act is now referred to as the Trust in Real Estate Services Act (TRESA). As part of these changes there is a new information guide by RECO, “Working with a real estate agent: Things you need to know.
The information guide describes: working with a real estate agent and the benefits as well as what to expect and the responsibilities of clients, knowing the risks of representing yourself, what to look for before your sign a contract with a real estate brokerage, understanding multiple representation, and how to raise a concern with a brokerage and with RECO.
In summary, the key changes described in the Information Guide are:
- Designated representation is defined (page 6). One (or more) of the brokerage’s real estate agents is your designated representative. The agent(s) represent(s) you and must promote and protect your best interests. Designated representation reduces the likelihood of multiple representation (read more on page 9).
- Self representation is defined (page 4) and it is not customer service. Self representation occurs when an individual does not want representation or advice from a real estate agent, they are a self represented party. It is the individual’s responsibility to look after their own best interests and protect themselves.
- Changes to the definition of Multiple representation (page 9), it exists when the same real estate agent is the designated representative for both the buyer and seller in the same transaction or for two or more competing buyers interested in the same property. Multiple representation is not permitted unless each of the clients involved agree in writing.
- Sellers can choose to share details of any offer received, provided there is no clause in an offer stating they cannot (page 10)
- Signed acknowledgement (last page of information guide) that the information guide has been provided by the real estate agent to an individual and content explained before providing services or assistance.
As experienced Ottawa Realtors® we would be happy to answer your questions and walk you through the RECO information guide.