The rights of real estate salespeople and brokers in Ontario to transact short-term rental accommodations have been affirmed after the Real Estate Council of Ontario issued a bulletin last week.
“By virtue of being registered to trade in real estate, registrants are permitted to trade in limited types of short-term accommodation rentals on behalf of consumers, with cottages, condo apartments, homes, cabin establishments, chalets and vacation homes being among the common examples,” says the bulletin.
“For a real estate registrant to remain compliant with the Real Estate and Business Brokers Act, 2002 (REBBA), when facilitating short-term accommodation rentals, the transaction must be conducted through a registered real estate brokerage. Providing any travel services beyond short-term accommodation rentals, however, requires registration with the Travel Industry Council of Ontario (TICO).”
The Ontario Real Estate Association (OREA) started a lobbying for change when it learned that TICO had begun a campaign forcing real estate brokerages who were arranging short-term rentals to register as travel agents.
“Forcing real estate brokerages who are transacting short-term rental properties to register as travel agents is a needless piece of red tape that would cost Realtors thousands of dollars, compels them to take courses, pass exams and make substantial deposits with no discernable benefit to consumers,” says OREA CEO Tim Hudak.
“OREA would like to commend Minister Bill Walker, TICO CEO Richard Smart as well as RECO CEO Michael Beard and Registrar Joe Richer for their quick action in coming up with a short-term solution to the double registration problem once we brought it to their attention.”
