TRESA (New Legislation)

The Trust in Real Estate Services Act (TRESA), effective December 1, 2023, has introduced significant changes to Ontario’s real estate industry, enhancing consumer protection and professional standards. Here’s a concise overview of the key updates:

1. Replacement of REBBA with TRESA

• TRESA has replaced the Real Estate and Business Brokers Act (REBBA), modernizing the regulatory framework for real estate professionals in Ontario.

2. Introduction of Designated Representation

• Designated Representation: Brokerages can now assign specific agents to represent individual clients within the same transaction, ensuring personalized advocacy and reducing conflicts of interest.

3. Enhanced Consumer Information

• RECO Information Guide: Agents are required to provide buyers and sellers with a comprehensive guide from the Real Estate Council of Ontario (RECO), detailing their rights, the roles of real estate professionals, and essential information about the transaction process.

4. Increased Penalties for Misconduct

• Higher Fines: Penalties for professional misconduct have been increased, with individual agents facing fines up to $50,000 and brokerages up to $100,000, reinforcing accountability within the industry.

5. Open Bidding Options

• Transparent Offer Processes: Sellers now have the option to conduct open bidding during multiple-offer scenarios, enhancing transparency in the offer process.

6. Modernized Code of Ethics

• TRESA has updated the Code of Ethics for real estate professionals, emphasizing integrity, transparency, and consumer protection to elevate industry standards.

These reforms aim to bolster consumer confidence and ensure that real estate transactions in Ontario are conducted with the highest level of professionalism and integrity.

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