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What's the latest on TRESA?
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November 2, 2023
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John Rich
TRESA is replacing the Real Estate and Business Brokers Act (REBBA) and phase two of the new regulations will come into force on December 1, 2023. Throughout the year, we have relayed various pieces of material to members in previous communications, but to ensure you remain up to speed and ready for implementation, you can find all of the information on how REALTORS® and brokerages will incorporate these changes below.
What's the Latest on TRESA?
On July 28th, 2023, the Government of Ontario introduced TRESA phase two regulations, which includes:
The implementation of the phase two regulations will come into force on December 1, 2023. The following resources explain how to implement the changes in your business:
TRESA and Standard Forms
Work is underway by OREA to create new Forms and revise up to 100 existing Forms. The OREA Standard Forms team will be developing educational guidance specific to the new TRESA rules, to ensure members are prepared for the changes ahead.
Updates on mandatory documented disclosures and acknowledgements:
- Differences between the old and new OREA Forms
- Clarifying terminology to describe brokerage/consumer relationships
- New Regulator Forms, like the “Information Guide,” that will be provided to clients and self-represented parties, and how they will affect Member trading
- Necessary updates to OREA Forms and Clauses to ensure TRESA compliance
Watch the Oct. 25th webinar recording: OREA Forms & TRESA
Download the pdf file: OREA Forms & TRESA Supplemental Package (Oct 25)
What's Next
Real estate boards across Ontario continue to look ahead to phase three of TRESA. Some of the topics that we are looking to work with the Ontario government on include:
- Regulations to support specialty certifications for REALTORS® and brokers
- Improved continuing education
- Rules for new administrative money penalties for black-and-white violations of the Code or other TRESA regulations
- Updating RECO’s registration process to reduce red tape for REALTORS®
At this time, we can confirm that OREA will be pushing back against any cooling-off periods that allow a buyer to back out of a real estate transaction. The experience in British Columbia has shown that the only people benefiting from cooling-off periods are speculators who are flooding the market. A cooling-off period for resale homes in Ontario would be bad for both buyers and sellers.
RECO Bulletins - Updated November 23, 2023
RECO is pleased to share more new bulletins to help you prepare for the changes coming into effect on December 1, 2023. These include:
- Implied representation agreements: The risks of implied representation agreements and steps agents can take to avoid creating implied relationships.
- Multiple representation: The multiple representation disclosures, acknowledgements, and consents that are mandatory if a brokerage proposes to have the brokerage, or a designated representative represent more than one client in the same trade.
- Conflicts of interest: The disclosure requirements that apply when the interests of a real estate agent conflict or might conflict with the interests of their client.
- Managing a delayed offer presentation process: The agent’s obligations when representing a seller who is considering whether to use a delayed offer presentation strategy. This bulletin also sets out a step-by-step process for obtaining the seller’s written direction.
- Managing a pre-emptive offer: The seller agent’s obligations when managing a pre-emptive offer, commonly referred to as a bully offer, intended to disrupt a delayed offer process.
- Facts a seller has a legal obligation to disclose: An agent's obligations with respect to facts a seller is legally obligated to disclose to a buyer.
- Unclaimed money in the real estate trust account: The brokerage’s obligations related to unclaimed money in the trust account, including when and how it must be paid to RECO.
- Shortfalls and missing property: The brokerage’s obligations related to shortfalls in the real estate trust account and missing property held in trust.
Are you TRESA ready?
As additional resources become available, RECO will alert you via email.
Questions?
Send an email to information@reco.on.ca. Please be sure to include “TRESA Question” in the subject line.
