The Minister of Consumer and Business Service has filed Phase 2 regulations to support the implementation of the Trust in Real Estate Services Act, 2020 (TRESA, 2020). TRESA, 2020 amends the Real Estate and Business Brokers Act, 2002 (REBBA), the legislation that governs real estate brokerages, brokers and salespersons (registrants) in Ontario, setting rules for how they conduct business and interact with the public.
The following key changes will take effect on April 1, 2023:
Code of Ethics Regulation (Code)
Information and Disclosure Obligations
The amendments in TRESA, 2020 and regulation changes will:
· Furthermore, to enhance consumer protection, the following general requirements will apply to all disclosures under the Act and regulations made by registrants to the public:
· In addition, other specific requirements will be prescribed for certain mandatory disclosures (e.g., in relation to multiple representation; property interest in real estate; material facts about real estate).
Real Estate Council of Ontario (RECO) Powers and Tools
· The amendments in TRESA, 2020 along with the regulation changes will help RECO operate more efficiently and focus its compliance and enforcement efforts where they are most needed and most effective, by:
Discipline Committee Composition and Procedures
· A new regulation dealing with the rules and procedures of the discipline committee will be in place, incorporating the relevant provisions currently found in the Code and General regulation. In addition, the new regulation includes certain updated provisions in relation to committee composition, appointments and processes.
The regulations are available on the Ontario e-Laws website.
The ministry’s proposal to add a condition to the existing exemption for auctioneers generated a significant amount of feedback during the consultation process. As a result, the ministry will continue to consider this issue in Phase 3 of regulation development.
Preliminary work on Phase 3 of regulation development is expected to begin later this year and will also include proposals for the development of an administrative penalties regime and consideration of a specialty certification program.
If you have any questions, please contact the ministry at REBBA@ontario.ca