The Trust in Real Estate Services Act, 2020 (TRESA) is legislation in Ontario that governs the conduct of real estate professionals and brokerage firms. TRESA replaced the Real Estate and Business Brokers Act, 2002 (REBBA) and aims to enhance consumer pro

Key Objectives of TRESA

1. Enhanced Consumer Protection:

   • TRESA introduces measures to protect consumers by ensuring that real estate professionals adhere to higher standards of conduct and professionalism.

2. Increased Transparency:

   • The act promotes greater transparency in real estate transactions, helping consumers make more informed decisions.

3. Modernization of the Real Estate Industry:

   • TRESA aims to modernize the regulatory framework to keep pace with changes in the real estate market and industry practices.

Major Provisions of TRESA

1. Regulation of Real Estate Professionals and Brokerages:

   • Real estate professionals (salespersons, brokers) and brokerages must be registered with the Real Estate Council of Ontario (RECO) and comply with TRESA’s regulations.

2. Disclosure Requirements:

   • Real estate professionals must disclose material facts about properties and their relationships with parties involved in transactions.

3. Code of Ethics:

   • TRESA includes a revised code of ethics that real estate professionals must follow, ensuring integrity, fairness, and professionalism in their conduct.

4. Improved Complaint and Discipline Processes:

   • The act enhances the processes for handling complaints against real estate professionals and enforces disciplinary actions more effectively.

5. Advertising and Marketing Rules:

   • TRESA sets out clear rules for advertising and marketing by real estate professionals to prevent misleading or false information.

6. Consumer Rights:

   • The act emphasizes consumer rights, providing mechanisms for consumers to seek redress if they encounter issues with real estate services.

7. Special Purpose Entities:

   • TRESA allows for the creation of special purpose entities, providing more flexibility in how real estate businesses can be structured.

Key Changes Introduced by TRESA

1. Real Estate Teams:

   • TRESA introduces regulations specifically for real estate teams, ensuring they operate transparently and ethically.

2. Personal Real Estate Corporations (PRECs):

   • Real estate professionals can now incorporate as PRECs, offering tax and business advantages while maintaining regulatory oversight.

3. Continuing Education:

   • Mandatory continuing education requirements ensure that real estate professionals stay updated with industry practices and regulatory changes.

Compliance and Enforcement

• Real Estate Council of Ontario (RECO):

  • RECO is the regulatory authority responsible for enforcing TRESA. It oversees the registration of professionals, conducts inspections, and handles complaints and disciplinary actions.

• Disciplinary Actions:

  • RECO can impose fines, suspend, or revoke licenses of real estate professionals and brokerages that violate TRESA’s regulations.

Benefits of TRESA

• For Consumers:

  • Enhanced protection and greater confidence in real estate transactions.

  • Clearer understanding of their rights and the services provided by real estate professionals.

• For Real Estate Professionals:

  • Clear guidelines and ethical standards to follow, enhancing the profession's credibility.

  • Opportunities for business growth through PRECs and special purpose entities.

Conclusion

TRESA represents a significant step forward in regulating the real estate industry in Ontario. By enhancing consumer protection, promoting transparency, and modernizing industry practices, TRESA aims to create a fair and efficient real estate market that benefits both consumers and professionals.