PREC Billing: How are my Association dues billed after forming a Personal Real Estate Corporation?
November 17, 2020
Since October 1, REALTORS® in Ontario have had the opportunity to incorporate with the passing of Bill 145, Trust in Real Estate Services Act, 2020 (TRESA) and can earn an income through a Personal Real Estate Corporation (PREC). With the new rules and regulations in place, some REALTORS® may find they can benefit from a PREC.
When TRESA became law, a number of questions have come up. One such question, “How are my Association dues billed after forming a Personal Real Estate Corporation?” has been frequent.
Some important points to note about PREC billing:
- Unless otherwise notified in future by RECO, your RECO registration will continue to be issued in your personal name.
- Invoices for Association fees, such as OMDREB quarterly dues, will continue to be issued in your personal/registrant name as listed with RECO.
- What may change is the way you handle the expense from your end if you decide to form a PREC. Therefore, it is extremely important to consult with your trusted financial expert to decide if expensing invoices through your PREC is the right choice for you.
We hope you find this helpful!
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