The ever-changing real estate market made a significant shift today, December 1st 2023, and we wanted you to be the first to know.
The Real Estate Council of Ontario (RECO) and the government of Ontario just enacted our new Real Estate ACT today. The Trust in Real Estate Services Act (TRESA) replaces the Real Estate Business Brokers Act (REBBA).
It comes with a number of changes, including:
1. The introduction of Designated Representation
2. No Customers – Only Clients
3. Possible disclosure of Content of Competing Offers
Understanding the New Real Estate Rules in Ontario - Simplified for Homebuyers and Sellers
Exciting news for those involved in Ontario's real estate market! Starting December 1st, there are some significant changes under the new TRESA regulations that you should know about:
New Way of Representation – Designated Representation:
Previously, when buying or selling a property, the same brokerage could represent both parties, sometimes leading to conflicts of interest.
Now, Ontario is introducing "Designated Representation." This means if you're buying a home, your agent will solely represent your interests, separate from the seller's agent, even if both agents are from the same brokerage.
Example: If John (seller's agent) and Jane (buyer's agent) work for the same brokerage, they can now represent their clients independently without any conflict.
From Customers to Clients:
The term "customer" in real estate transactions is being phased out. Now, you're either a "client" with a formal agreement with a brokerage, or you're representing yourself.
Important: Agents can't give advice or opinions (in any way) to those who choose to represent themselves. They can provide some limited assistance, but it shouldn't be mistaken for formal representation or advice and can't be relied upon.
Transparency in Competing Offers:
A big change! Now, the details of other offers on a property (like price, deposit amount, and conditions) can be shared with everyone making an offer. This was not allowed before. This is optional and at the discretion of the home Seller
It's up to the seller to decide if they want to share these details and to what extent.
As a buyer, you should know that the seller might choose to share the details of your offer with others. If you're not comfortable with this, you can address it in your offer with a condition that revokes the offer if shared.
These changes aim to bring more clarity and fairness to real estate transactions in Ontario. Whether you're buying or selling, it's crucial to understand these new rules. Don't worry if it seems overwhelming; As professionals, we are available to help navigate these changes.
Here is a link to the new RECO explanation guide. This will have to be signed by everyone who engages with a real estate professional before having any conversations about real estate - it’s 11 pages long.