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Ontario gov’t confirms Phase 2 of TRESA will take effect in December

The Ontario government has announced that Phase 2 of the Trust in Real Estate Services Act (TRESA) will come into force on Dec. 1. 

According to a statement from Tim Hudak, CEO of the Ontario Real Estate Association (OREA), TRESA represents the “most substantial change in the province’s real estate industry in over twenty years and will impact the day-to-day business of our 96,000 Members and 34 Member Boards.” 

The second phase of TRESA was initially scheduled to take effect in April but was postponed to incorporate additional options for multiple representation scenarios, instead of an outright ban, following recommendations from OREA and the Real Estate Council of Ontario.

One of the notable updates in Phase 2 is the introduction of “designated representation” in multiple representation scenarios. This new option grants brokerages the ability to designate a specific broker or salesperson to exclusively represent a client during a real estate transaction. Proponents of designated representation argue that it offers consumers more choice and personalized service while addressing potential conflicts of interest that might arise with traditional multiple representation.

To support real estate professionals in adapting to the changes, OREA launched the TRESA Guidance Hub, a resource center providing information on requirements and best practices.

 

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