The Ontario Real Estate Association (OREA) is proposing reforms for the third and final phase of the Trust in Real Estate Services Act (TRESA), including additional education for new Realtors, expanded regulatory oversight, and stricter disclosure rules.
In a white paper released Tuesday, OREA’s recommendations outline policy changes to address what the association describes as “remaining gaps” in the legislation. The proposed changes target areas including professionalism, consumer confidence, and regulatory effectiveness.
Strengthening education
One notable recommendation is the introduction of a two-year articling and mentorship requirement for new Realtors. “The lack of practical knowledge is very evident in the industry, and ensuring Ontario’s newest registrants receive appropriate sales training is critical to ensuring consumer confidence in real estate,” the white paper states.
OREA is also calling for the government to enact section 8 of TRESA, allowing Realtors to obtain specialty certifications. These certifications could include areas like commercial, agricultural, waterfront, and condominium real estate.
Additionally, OREA is advocating for stricter disclosure requirements, especially for latent defects and guaranteed sales. This includes mandatory, detailed disclosures on hidden property defects, designed to help buyers make more informed decisions. For guaranteed sales, OREA recommends written disclosures outlining all specific terms and conditions, ensuring consumers understand the scope and limitations of these agreements.
Increased oversight and accountability for RECO
The white paper addresses expanded oversight measures for the Real Estate Council of Ontario (RECO), the provincial regulator. OREA recommends additional powers for RECO to monitor and address unethical practices, with increased fines and penalties for violations of TRESA and the Code of Ethics.
To reinforce RECO’s accountability, OREA is calling for the council to be placed under ombudsperson oversight, which would subject RECO to scrutiny, similar to other government organizations.
Stronger penalties for unethical behavior
To address unethical behavior, OREA proposes granting RECO the authority to order disgorgement, allowing RECO to require registrants to repay profits earned through violations of TRESA. This would ensure any proceeds from breaches are returned to affected parties.
OREA also recommends expanding Administrative Monetary Penalties (AMPs) to address minor infractions, such as advertising violations, through direct fines rather than lengthy disciplinary hearings. Additionally, the white paper suggests lengthening the “cooling off” period for licensing revocations due to serious TRESA breaches to “two years less a day.”
Closing the “auctioneer loophole”
OREA’s recommendations also address what it calls the “auctioneer loophole,” which allows auctioneers in Ontario to conduct real estate transactions without RECO registration. This creates a “two-tiered” system, according to OREA, where auctioneers operate outside the standard regulatory framework. The white paper recommends requiring all auctioneers involved in real estate transactions to register with RECO, aligning them with the standards Realtors must meet.
Building on TRESA’s 2023 reforms
TRESA’s initial rollout began in 2020, which replaced the 2002 Real Estate and Business Brokers Act, more commonly referred to as REBBA.
Phase 3 of TRESA builds on reforms implemented in December 2023, such as the transparent offer process, which allows sellers to share offer details with all bidders, and designated representation.
Another notable change in 2023 replaced the term “customer” with “self-represented party” (SRP), clarifying representation distinctions for consumers who choose not to work directly with a Realtor.
The Ontario government is expected to introduce Phase 3 regulations by late 2024 or early 2025.
Read OREA’s full white paper here.
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