What TRESA Changed for Ontario Home Buyers

Ontario's real estate rules changed when the Trust in Real Estate Services Act replaced the old REBBA framework. If you last bought a home several years ago, a few things will look different. Here is the plain version of what affects you as a buyer.

You are told up front how you will be treated

Before a brokerage works with you, it has to give you the RECO Information Guide and explain your options: becoming a client of the brokerage, or dealing with it as a self-represented party. A client gets advice, opinions and representation. A self-represented party does not, and the brokerage is required to treat that person fairly and honestly but cannot advise them.

Written agreements are clearer

If you become a client, you sign a buyer representation agreement. It sets out the services, how long it runs, the geographic area, and how the brokerage is paid. These terms are negotiable. Read the term length and the area carefully before you sign, and ask what happens if you want to end it early.

Designated representation

Brokerages can now designate specific salespeople to represent specific clients. In practice that means two agents in the same brokerage can represent a buyer and a seller on the same property while each still owes their own client full representation, with the brokerage managing the confidentiality between them. You still have to be told when this is happening and give your consent.

Offers can be handled differently

A seller can now choose to disclose the substance of competing offers to everyone bidding, if they instruct their brokerage to do so. It is optional, not automatic, and personal information about the buyers still stays confidential. Ask the listing brokerage which process the seller has chosen before you write an offer.

What it means practically

• Ask for the RECO Information Guide early and actually read it.
• Decide whether you want representation before you tour homes, not on the doorstep.
• Negotiate the term of your representation agreement.
• Ask how offers will be handled on any property you are serious about.

This is general information, not legal advice. Your lawyer and your brokerage will confirm how the rules apply to your situation.

Working through it together

I walk every buyer through this paperwork before we start, so nothing gets signed in a hurry. Read the Waterloo Region buyer guide, browse current listings, or get in touch with questions.