What Does TRESA Mean for You as a Broker or Agent?

TRESA, or the Trust in Real Estate Services Act, is Ontario’s new legislation designed to protect consumers by setting clear rules for real estate agents and brokers. Although the new regulations add more forms and requirements, we created a simple diagram that you can download to help you easily navigate these changes.

Key Changes

Effective December 1, 2023: TRESA replaced REBBA 2002.
Client vs. Self-Represented Party: TRESA removes the Customer category. Now, there are only Clients and Self-represented parties (SRP)
Designated Representation: Two agents from the same brokerage can now represent both the buyer and the seller, following specific rules.
Disclosures Requirements: TRESA mandates clearer disclosures
New Code of Ethics: Agents must adhere to a more concise Code of Ethics.
Open Bidding: Sellers can opt to share offer details with potential buyers, giving them more information during bidding wars.

1. Understand Relationships with Self-Represented Parties

TRESA introduces the term “Self-represented party” (SRP). A SRP does not receive services and has limited interaction with realtors. Realtors can assist SRPs with general real estate information or administrative tasks, like filling out forms, but cannot provide advice. Assistance to SRPs is only allowed when a client is also involved in the transaction.

2. Option for Designated Representation

The optional Designated Representation model lets two agents from the same brokerage work with both the buyer and the seller without entering Multiple Representation. This means each agent can focus on the needs of their respective client, even though they’re from the same brokerage.

3. Provide the RECO Information Guide

You must now give the Consumer Information Guide from the Real Estate Council of Ontario (RECO) to all clients and SRPs. This guide explains TRESA’s impact and details your roles and responsibilities.

4. Meet Disclosures Requirements

TRESA mandates clearer disclosures on multiple representation, material facts, conflicts of interest, and Seller Property Information Statements (SPIS). These must be written clearly, and you must obtain and provide a written acknowledgment from clients confirming receipt of this information.

5. Adhere to Updated Code of Ethics

The updated Code of Ethics under TRESA is shorter and clearer, focusing on managing conflicts of interest and confidentiality.

6. Facilitate Open Bidding

In a multiple offer situation, if all parties agree, sellers can disclose offer details to potential buyers. This practice promotes transparency and helps buyers make more informed decisions.

What forms do you need for TRESA 2002?

A number of new forms were introduced as part of TRESA 2002 and are required for all transactions after December 1, 2023:

RECO Information Guide

The RECO Information Guide must be provided to all clients and self-represented parties.
If a self represented party is involved in the transaction, an Information and Disclosure to Self Represented Party must be signed. There are two versions: Brokerage Representation and Designated Representation
If there was a listing agreement in place prior to December 1, 2023 but an agreement was signed AFTER December 1, 2023 the Guide is still required.
This form has replaced the Working with a Realtor/Agency Explained Form.

Confirmation of Co-operation & Representation (Form 320)

Form 320 now includes a “Listing Brokerage – Multiple Representation” Section.
If either a) or b) has been checked, Form 325 & Form 326 must be completed.
If there is a Self Represented Party involved in the transaction, the appropriate statements need to be checked and further documentation may be required.

Self Represented Party Acknowledgement & Consent

There are two versions: Seller & Buyer.
This will be signed in addition to the Information and Disclosure to Self Represented Party.

TRESA Forms Diagram demonstrating which forms are required.

Download the tresa 2002 forms pdf

RECO Resources

To find more information about TRESA and RECO, visit the following resources:

Conclusion

Though new forms and requirements have been introduced, navigating them doesn’t have to be complicated. Our TRESA 2002 Forms diagram explains which forms are needed. Download the PDF for easy access and sign up for our newsletter to stay informed.

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