The rollout of the next stage of Ontario’s Trust in Real Estate Services Act (TRESA) is facing delays.
The second phase of TRESA, intended to replace the decades-old Real Estate and Business Brokers Act (REBBA), was scheduled to take effect on Apr. 1. It introduces new consumer protection measures and updated standards for real estate professionals in Ontario.
However, Michael Beard, the CEO of the Real Estate Council of Ontario (RECO), announced in a YouTube video on Mar. 24 that the government had postponed the implementation of Phase 2.
Phase 2 delayed
Beard also confirmed that RECO recommended the province permit designated representation for brokerages that may choose to use it as an alternative to brokerage representation currently required under REBBA.
Designated representation permits two agents at the same brokerage to represent both a buyer and seller in a single transaction.
“The intent of RECO’s proposal is that under TRESA, a brokerage with multiple clients in the same trade would be permitted to designate a different agent to fully represent each client in a trade,” Beard explained in the YouTube video.
“The brokerage would remain neutral but would be responsible for ensuring the designated representatives fulfill their duties.”
Meanwhile, the Ontario Real Estate Association (OREA) shared in a press release on Mar. 24 that it is working with RECO and lobbying for the additional option in multiple representation scenarios.
RECO and OREA note that the model is successful in Alberta, Nova Scotia and British Columbia and would offer consumers more choices.
OREA says it has been working with RECO and the Ontario government on a proposed solution, and the Ford Government has entered into discussions with the association to explore the option of designated representation as part of the Phase 2 regulations.
“If adopted, it is paramount we get this right and that any new tools align with our goal of improving professionalism and ethics in real estate.” — Tania Artenosi, OREA president
OREA says it supports the government’s decision to rescind the Apr. 1 implementation date to give the government more time to consider the option.
OREA President, Tania Artenosi, added, “If adopted, it is paramount we get this right and that any new tools align with our goal of improving professionalism and ethics in real estate.”
The updated launch date for Phase 2 of TRESA has yet to be released, though RECO’s CEO has assured the industry that the council will keep them updated on the revised implementation date.