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!
If you have any questions, please let us know at firstname.lastname@example.org