About to buy or sell a property? This is one of the FIRST things your agent should be talking with you about!
It is extremely important your interests are protected in the process of buying or selling and as of December 1st, 2023 a new Ontario law is hoping to clarify and ensure that all parties to the transaction understand who is in whose court, and that the representatives (real estate agents) act with the utmost of integrity throughout the process.
On December 1, 2023, the government of Ontario Canada enacted a new legislation called the Trust in Real Estate Services Act (TRESA). This legislation updates and replaces the previous Real Estate and Business Brokers Act, 2002 (REBBA), which was the law that governed Ontario’s real estate salespersons, brokers, and brokerages. TRESA aims to modernize the rules for the real estate sector and enhance consumer protection and professionalism.
One of the major changes that TRESA brings is how it impacts the relationship between buyers, sellers, and realtors.
Here are some of the key points that you need to know:
- Customer relationships/agreements are no longer permitted under TRESA. This means that a person who wants to buy or sell a property can only be a client or a self-represented party. A client is someone who has signed a representation agreement with a realtor, while a self-represented party is someone who has not. A client can receive services, opinions, and advice from their realtor, while a self-represented party can only receive factual information
- TRESA allows brokerages to enter into designated representation agreements with clients. This means that a brokerage can assign different realtors to represent different clients who are involved in the same transaction, such as a buyer and a seller. This way, each client can have their own realtor who can act in their best interest and avoid any conflicts of interest.
- TRESA permits the sharing of the contents of offers with the seller’s written direction. This means that a seller can instruct their realtor to disclose the details of any offers they receive to other potential buyers or their realtors. This can create more transparency and competition in the market and help the seller get the best possible price for their property.
- TRESA changes the information and disclosure obligations of realtors to promote clarity in communication. This means that realtors have to provide more information to their clients and self-represented parties about their role, responsibilities, and services. Realtors also have to share a new RECO Information Guide with those they engage with, which explains the key aspects of TRESA and how it affects them.
- TRESA introduces a revamped Code of Ethics for realtors that focuses on ethical obligations.. This means that realtors have to follow higher standards of conduct and professionalism when dealing with clients, self-represented parties, and other realtors. The Code of Ethics covers topics such as conflicts of interest, confidentiality, competence, honesty, integrity, and fairness.
TRESA is a significant reform for the real estate sector in Ontario that aims to improve consumer trust and confidence in realtors. It also provides more choice, flexibility, and transparency for buyers and sellers who want to buy or sell a property.
Knowing the legal relationships between you and the various parties involved in your transaction is critical. By entering into a client relationship with your realtor, both you and your realtor can talk freely and confidentially about the details of your property or offer in order to construct a strategy to achieve your goals in buying or selling.
Confidentiality in these transactions is critical, as is being as fully informed as possible about all aspects of the process. I am in the midst of the market, staying on top of not only its nuances but the stories that surround the home and community. These all come into play to ensure you get top price, or the best deal. That intel can only come from the ‘inside,’ and can easily play against a ‘self-represented’ party.
If you are proceeding to buy or sell let’s set up a time to talk, to ensure your best interests are secured, and we can create a formidable team to ensure your buying or selling process goes smoothly and ensures your interests are fully protected.
The full Act can be accessed here: https://www.ontario.ca/laws/statute/s20001 We ask you rely on the contents of the Act linked herein and your legal advisor to confirm any details of the Act and their potential impact on you.
Call me now to talk, we can meet in person, over Zoom, or via telephone: 647-230-2068
*This blog is not to be construed as legal advice and the contents herein are not warranted.
