Government of Ontario press release – On Thursday, Oct. 1, 2020, the Ontario government announced the first phase of regulatory changes related to the Trust in Real Estate Services Act, 2020 (TRESA). The new changes will modernize rules for registered real estate brokerages, brokers, and salespersons across the province while also addressing consumer concerns.
The first phase, announced today, includes regulations that more closely align real estate brokerages and professionals with modern business practices. The new measures will:
- Allow real estate professionals to incorporate and be paid through Personal Real Estate Corporations (PRECs).
- Let salespersons and brokers use additional advertising terms such as “real estate agent” and REALTOR® in their advertisements, better reflecting the services they provide to consumers across the province.
Expected later this Fall, the second phase of regulatory development will include public consultations with consumers and real estate professionals that focus on further measures to support trustworthiness and the highest ethical standards in the real estate sector, including:
- Updating and modernizing the Code of Ethics for real estate professionals;
- Implementing disclosure requirements to better protect consumers; and
- Improving regulatory efficiency and enhancing professionalism in the industry by updating the authority and powers of the Real Estate Council of Ontario.
“The real estate sector is an important part of life here in Ontario, for individuals, families, and the overall economy,” said Minister of Government and Consumer Services Minister, Lisa Thompson. “These changes will go a long way toward fostering a healthy, open, and competitive real estate marketplace for consumers and businesses. I encourage real estate professionals to take advantage of the opportunity to file incorporation documents before the end of the year, as the government works to bring the second phase of the TRESA amendments into force.”