ONTARIO REMOVING HURDLES FOR REAL ESTATE PROFESSIONALS AND ADDRESSING CONSUMER CONCERNSPublished on October 08, 2020
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."
- The Trust in Real Estate Services Act, 2020, was passed by the legislature on February 28, 2020 and received Royal Assent on March 4, 2020.
- The ministry received over 100 submissions during the first phase of regulation development.
"TRREB congratulates Minister Thompson and the government for bringing much needed fairness that will result in a more efficient business environment, by passing regulations as part of the Trust in Real Estate Services Act, allowing those who trade in real estate to form personal corporations. TRREB initiated these efforts in 2005 and worked with the industry to ensure Ontario REALTORS® had access to a tool that’s available to REALTORS® in six other provinces and most industries in Ontario."
- John DiMichele
CEO, Toronto Regional Real Estate Board
"For over a decade, OREA has been fighting to make Ontario a leader in North America when it comes to high professional standards and strong consumer protection in real estate. We are a step closer to that goal today. Personal Real Estate Corporations are a modern business tool that will allow REALTORS® across Ontario to make significant investments in their business to better serve consumers and create jobs. We are thrilled that our Members can now benefit from the same business tools as other professions and Realtors in other provinces. OREA would like to thank Premier Doug Ford, Minister Lisa Thompson, Minister Todd Smith and MPP Bob Bailey for their support of the Tax Fairness for REALTORS® Act and MPPs from all parties in the Ontario Legislature for supporting the Trust in Real Estate Services Act, 2020 which we are extremely proud to say passed with all-Party support."
- Tim Hudak
CEO, Ontario Real Estate Association
"The new TRESA regulations are a continuation of the important work to modernize the legislation governing real estate professionals in Ontario. This is of great benefit to the industry and we look forward to ongoing legislative reforms that further strengthen consumer protection for all Ontarians."
- Michael Beard
CEO, Real Estate Council of Ontario