Skip to main content

Ontario’s New Real Estate Regulations: What You Need to Know

Ontario has recently introduced new regulations for real estate agents, aiming to ensure better consumer protection and ethical practices. The Trust in Real Estate Services Act brings about significant changes that every real estate professional and consumer should be aware of. This article will discuss these new regulations and their impact on the real estate industry.

Trust in Real Estate Services Act: Key Changes

Passed in 2020, the Trust in Real Estate Services Act aims to improve consumer protection and promote ethical practices among real estate agents. The legislation brings several updates, including:

  • An updated code of ethics for real estate professionals
  • Increased disciplinary powers for the Real Estate Council of Ontario (RECO)
  • New requirements for agents to disclose dual representation status to clients and obtain written consent
  • Introduction of designated representation agreements for cases where clients do not consent to dual representation

Dual Representation: Concerns and New Requirements

One of the most significant changes in the new regulations is related to dual representation, a practice where a single real estate agent represents both the buyer and the seller in a transaction. Although the practice has been banned in some parts of Canada due to the risks it poses to consumers, the Ontario government has decided to maintain it, with new requirements.

Under the new regulations, agents must disclose their dual representation status to each client and obtain their consent in writing. If a client does not consent to dual representation, the government is introducing designated representation agreements. These agreements
Orginal article: Link To Article – provided by Kansas City Realtors