Before you sign a buyer or listing agreement, make sure you know who represents you, what help you will get and what you will pay. Those are the Ontario real estate rules I want every client to understand.
When someone asks me what TRESA means for a home purchase or sale in Greater Sudbury, I start with decisions they can actually make. The paperwork matters, but the point is to know whose interests your agent is protecting and what changes if another party is involved.
Start with the RECO Information Guide
Ontario's Trust in Real Estate Services Act, 2002 (TRESA) governs how registered real estate agents and brokerages trade in real estate. Important changes took effect on December 1, 2023. The Real Estate Council of Ontario (RECO) Information Guide must be given to a buyer or seller and explained before an agent provides services or assistance. Read it before you commit to a relationship; it covers representation, self-representation and the risks of each.
RECO is the Ontario regulator. It registers agents and brokerages, oversees compliance and handles complaints and discipline. OREA provides commonly used transaction forms, CREA owns the MLS® trademark, and local boards or associations operate co-operative listing systems. None takes RECO's place as the provincial regulator. If you want to check an agent, use RECO's registrant search.
Know whether you are a client or self-represented
If a brokerage is representing you, ask to see the representation agreement and discuss its services, fees, duration, holdover and termination terms before signing. Ontario allows brokerage representation and designated representation; the agreement tells you who is responsible for representing your interests and how confidential information is handled. I would rather talk through those details at the start than discover a mismatch when an offer arrives.
If you choose to be self-represented, the other party's agent is working for that agent's client, not for you. RECO requires additional information to be given before an agent assists a self-represented party. You can still seek your own lawyer, inspector or financing professional. Our guide to the forms buyers and sellers see explains the paperwork in the order it tends to appear.
Ask what happens if one brokerage is involved with both sides
Multiple representation is not simply two agents sharing a brand. Whether it arises depends on the representation agreements and who represents whom in this particular trade. If it does arise, the brokerage must make the required written disclosure and obtain each affected client's written consent before proceeding. You can decline. The agent's ability to advocate for one side changes, so ask what advice they can and cannot give you and consider independent advice before deciding. RECO has a clear consumer explanation of multiple representation.
Offers, deposits and property questions deserve their own answers
Do not assume a list price or offer count tells the whole story. If you are buying, ask how offers will be presented, which conditions you need and what you can safely afford. If you are selling, ask how your instructions about timing and competing offers will be recorded. I explain those steps in Making an Offer, Offer Negotiation and the truth about bidding wars.
For a deposit, have the agreement spell out the amount, deadline and recipient; ask where the money will be held. For a property concern, distinguish what is known, what should be investigated and what the law requires to be disclosed. An agent's duty to disclose material facts to their client is different from a seller's legal obligation to disclose certain facts to a buyer. A home inspection and your lawyer's advice can help with a property-specific decision.
The questions I would ask before signing
- Who will represent me, and what duties will they owe me?
- What services, fees, dates and termination terms are in the agreement?
- What happens if the brokerage or my designated representative has another client in the same trade?
- How will offers, conditions and deposit deadlines be communicated and recorded?
- Which property questions need an inspector, lender or lawyer rather than an agent's guess?
If you are buying, the Buyer Experience walks through the decisions from search to closing. If you are selling, the Seller Experience does the same from preparation to handover. For the legal rules themselves, start with RECO's TRESA questions and answers and the Information Guide. I can explain how the transaction works; a lawyer should answer a legal question about your particular agreement or property.
Expect Moore for Your Real Estate.
— Chad Moore, REALTOR® | Lake City Realty