The idea of a fully mobile Canadian workforce, where professionals in one province can easily work in another, is long overdue.
In a time of global economic uncertainty marked by the ongoing U.S. trade war and increasing protectionist policies, labor mobility should be a part of Canada’s strategy to strengthen its internal economy.
However, this resilience should be based on trust, especially in crucial sectors like real estate that directly impact consumers.
When it comes to buying or selling a home, which is often the largest financial transaction for many Canadians, consumer protection should not be compromised in the pursuit of unrestricted labor mobility.
The Risks are Higher in Real Estate
Across Canada, provinces are introducing laws such as Ontario’s Bill 2, the Protect Ontario Through Canada Free Trade Act, 2025, to allow for “as-of-right” recognition of professional registrations or licenses.
On the surface, this seems like a positive move. Real estate professionals, like their clients, should be able to work across provincial borders with minimal obstacles and bureaucracy.
However, real estate is not comparable to other regulated professions.
If a hairstylist or an accountant from another province makes a mistake due to lack of knowledge of local regulations, the consequences are usually fixable. In real estate, a bad transaction can have severe financial repercussions, impacting a family’s future, depleting life savings, or leaving someone without a home.
When it involves the financial well-being of Canadians, the stakes are too high to treat real estate labor mobility as a simple process.
Frameworks Based on Local Specifics
Real estate professionals operate in diverse local markets shaped by regional cultures, economies, and consumer expectations. The provincial regulatory frameworks governing these markets were not created by chance. They were tailored to meet the unique needs of consumers in each province.
For instance, Ontario’s regulatory system is designed to address the complexities of Toronto’s condo market as well as the different dynamics of rural or northern transactions.
While these provincial frameworks may not always be perfect, they have evolved to be adaptable enough to accommodate a variety of property types, transaction structures, and market pressures. Ignoring this complexity in the name of quick labor mobility would be a misunderstanding of how real estate operates in Canada.
Moving Forward with Safeguards
Leaders in the real estate industry should advocate for labor mobility with certain requirements in place.
Rather than resisting the removal of internal trade barriers, industry organizations, regulators, and government bodies should collaborate to create reciprocal registration recognition frameworks that allow real estate professionals to be certified efficiently while ensuring consumer protection.
For example, out-of-province registrants should demonstrate knowledge of provincial real estate laws and regulations. This could involve implementing jurisdiction-specific knowledge tests, like the Real Estate Council of Ontario (RECO) interprovincial challenge exam, to ensure agents understand the legal frameworks they’re working within.
There should also be a requirement for adequate insurance coverage in the province where they practice.
In Ontario, this would mean participating in RECO’s professional liability program.
Agents and brokerages should also be mandated to maintain trust accounts within the province they operate in to ensure consumer deposits are under local oversight and can be audited if needed.
Moreover, in a scenario where corporate brokerage headquarters could be located anywhere in Canada, there must be clear accountability lines so consumers know who to contact for resolving complaints or getting assistance during a transaction.
Upcoming Changes on Canada Day
For real estate association leaders nationwide, this future is approaching sooner than anticipated.
Prime Minister Carney and Canada’s premiers have set a goal of July 1st, 2025 for eliminating all internal trade barriers.
Many provinces have signed memorandums of understanding (MOUs) to negotiate the specific changes and regulations for as-of-right labor mobility.
Fortunately, organizations like the Toronto Regional Real Estate Board (TRREB), the Ontario Real Estate Association (OREA), and the Canadian Real Estate Association (CREA) are involved in these discussions alongside provincial regulators.
In addition to governmental policy changes, association leaders should prioritize training programs that equip agents and brokers with the necessary knowledge to operate effectively outside their home province.
Brokerages, especially those operating in multiple provinces,…
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