Whether you're eyeing a new home or planning to sell in Ontario, this is info you don't want to miss. On December 1, 2023, real estate in Ontario got a major makeover! TRESA - The new Trust in Real Estate Services Act kicked in, and has changed how the nearly 100,000 realtors in the province of Ontario do business.

To break down these changes, the Real Estate Council of Ontario has crafted the RECO Information Guide, here is a spotlight on some of the key shifts you need to be in the know about.

With TRESA, consumers have more clarity and options than ever before. To help you understand these changes, the Real Estate Council of Ontario has created the RECO Information Guide and this video is a companion to highlight a few of the major changes you need to know.

Real estate agents in Ontario have always been your go-to for valuable info, advice, and guidance. Nothing new there. What's changed? TRESA gives us a clearer picture of our roles and your options. Regardless of whether you're buying or selling, there's a set of fiduciary duties we owe you—basically, it means your best interests are front and center.

Fiduciary duties is a complicated term that means you, the consumer have our:

• Undivided loyalty - your best interest is promoted and protected by the brokerage or agent representing you. As a client your interests take priority over everything else.

• We must tell you everything we know about the transaction or relationships that could have an impact on your decisions

• Your confidential information cannot be shared without your consent. We cannot disclose your motivations, or the amount you would be willing to spend or accept.

• We must also avoid any situations where a conflict of interest may arise. In the instance it does arise, we must disclose this to you and you must agree in writing to continue receiving services.

But these changes are a two-way street. As a consumer, you've got some responsibilities too. You need to be clear about what you want (your needs, budget and timing), respond promptly to your agent, understand your agreement terms, and, of course, pay the agreed-upon fees.

Self Represented Parties

One major change we want to talk about is the introduction of Self-represented parties. Buyers and sellers have always had the option to represent themselves. However, now the potential risks of not being represented as a client of a real estate brokerage are more clearly outlined. Very few buyers or sellers make the choice to be a self-represented party, but RECO lays out the significant risks to representing yourself in this document. If you are thinking of going it alone, please read the section on representing yourself very carefully.

The most important thing for a self-represented party to remember is that the real estate agent is working for another party in the transaction. That agent has a legal obligation to act in the best interest of their client, not for the Self Represented party. 

The only assistance an agent can provide a self-represented party is in the best interest and service to their client. Agents cannot do anything that would encourage a self-represented party to rely on their expertise, skill or judgment. 

As an example, if a self represented party inquires about a specific property the agent has listed, the agent can show that property to the party, and provide factual, public information about it If the self represented party asks about value, wants information about comparable properties, or asks to see another house in the neighborhood listed by someone else, the agent cannot legally help them.

However, should you decide you don’t want to be self-represented anymore, you have the right to change your mind, and can become a client of a real estate brokerage at any point in the transaction.

Designated Representation

When you decide to work with an agent, you become a client and will sign a Representation Agreement with the brokerage. This contract is not new, but new under TRESA is designated representation. With this you now have the opportunity to identify a specific agent or agents in the brokerage to promote and protect your interests. 

The benefit of designated representation is that it reduces the likelihood of multiple representation.

You can read more about the various sections of the representation agreement in the RECO information guide, but it is important to remember that if you don’t want to sign an agreement - and that is totally within your rights, you should not expect the real estate agent to provide you with any services, like showing you homes.

Let’s touch on the changes made to multiple representation. 

Multiple Representation

Multiple representation is when a designated representative or brokerage represents more than one client, with competing interests, in the same transaction. For example if an agent represents both buyer and seller in a transaction. This is not permitted unless each of the clients involved agrees. 

If you do agree to multiple representation, the brokerage must disclose to you in writing how the brokerage or agent’s duties to you will change, the difference in services you will receive and any changes to how much you will pay the brokerage. 

We recommend you seek independent professional advice before agreeing to multiple representation. 

And you can refuse multiple representation. If you don’t agree to it the brokerage or your representatives cannot proceed. It is important to understand that multiple representation significantly reduces what the brokerage and its agents can do for you, which could have consequences and costs.

Please read the section in the RECO Information Guide on multiple representation very carefully and reach out if anything is unclear.

Open Offer Process

And finally, let's talk about disclosing the content of offers. Open bidding, or Open Offer processes, have been all over the media lately. In the past, buyers were entitled to know the number of competing offers on a property. That has not changed, however, sellers can now choose how much information - if any - they want to share about the offers they receive.

Sellers can choose to disclose as much or as little information as they would like, as long as they don’t disclose personal or identifying information contained in the offers. 

Buyers should be aware that sellers can make the decision to share the content of offers at any time - you may not know in advance. 

Regardless of what side of the transaction you are on, your agent will work with you to ensure you are aware of the benefits and risks, as well as the steps to take to protect yourself, on a case by case basis.

So, there you have it, —TRESA in a nutshell.

More choices, more protection, more transparency.

Be sure to read through the RECO Information Guide for a deeper understanding. And reach out any time to talk about how these changes impact you.