Imagine a consumer scrolling through listings and seeing “under contract” on a property they love. They move on. But the deal wasn’t firm — it was sold conditionally, and your client just lost a potential backup offer. That’s not a technicality. That’s a failure of fiduciary duty.
Language matters in real estate, and two terms have come up repeatedly in my work as a real estate educator: are we “registered” or “licensed” as real estate salespersons in Ontario, and is a property “sold conditional” or “under contract”?
Registered or licensed — and why does it matter?
“Registered” and “licensed” are not interchangeable in Ontario real estate, and using the wrong term isn’t just a technicality — it can be a Real Estate Council of Ontario (RECO) issue. “Licensed” is the term used in many other provinces (B.C., Alberta, etc.) and in the United States, which is why it slips into everyday language so easily. But Ontario has always used registration, not licensing, as its legal framework.
Licensed in Ontario: lawyers and paralegals (Law Society of Ontario); physicians and surgeons (College of Physicians and Surgeons of Ontario); nurses (College of Nurses of Ontario); engineers (Professional Engineers Ontario); architects (Ontario Association of Architects); pharmacists (Ontario College of Pharmacists); electricians and plumbers (Ontario College of Trades); teachers (Ontario College of Teachers); mortgage agents and brokers (Financial Services Regulatory Authority of Ontario, or FSRA); insurance agents and brokers (FSRA).
Registered in Ontario: real estate salespersons and brokers (RECO under the Trust in Real Estate Services Act, or TRESA); psychotherapists (College of Registered Psychotherapists of Ontario); dietitians (College of Dietitians of Ontario); massage therapists (College of Massage Therapists of Ontario); registered practical nurses; social workers (Ontario College of Social Workers and Social Service Workers).
Perhaps the most relevant comparison is between mortgage agents and real estate salespersons: mortgage agents are licensed by FSRA, and real estate salespersons are registered by RECO. Both terms ultimately mean the individual is authorized to perform the activities essential to their profession. I’m not a lawyer, and I won’t presume to debate the niceties of the law — but I do care about what works.
In consumers’ minds, the difference between “licensed” and “registered” is subtle but significant. A licence carries more weight because of the professions it’s associated with: doctors, lawyers, engineers, pilots. I believe we should replace “registered” with “licensed” — there is no compelling reason not to. And if the argument against it is that TRESA says “registered,” then let’s change the wording in TRESA.
‘Under contract’ or ‘sold conditional’?
Simply put: “under contract” is American.
In the U.S., once an offer is accepted, the property is “under contract,” meaning both parties are bound by an agreement of purchase and sale. The same is technically true here — but the term is far less understood in Canada than it is south of the border. When salespersons advertise a listing as “under contract,” what they really mean is “sold conditionally.” When a seller accepts an offer in Ontario, the parties have a binding agreement of purchase and sale, but if there are conditions attached — financing, inspection, status certificate — the deal is not firm. Either party can still walk away if conditions aren’t met or waived.
In an informal survey of Ontario consumers (friends and family), I asked what “under contract” would imply if they saw it on an MLS listing. They uniformly said they would infer the property was no longer available. Interestingly, they were more familiar with “under contract” than “sold conditional” — thanks largely to HGTV — which makes the confusion all the more consequential.
The correct Canadian terms: sold conditional (accepted offer with conditions outstanding); sold firm (all conditions waived or met, fully binding); conditional on financing, inspection or status certificate (specifying what still needs to happen). These terms are informative to consumers considering your client’s property. “Under contract” is not.
Using “under contract” in Ontario is, I would argue, a failure of fiduciary duty. In your eagerness to declare a successful outcome, you’ve failed to consider your seller — and failed to protect and promote your client’s best interest by allowing consumers to infer the listing was no longer available. You’ve put self-promotion before client interest.
Ask yourself: do you want to be pale imitators of American HGTV content, or proud proponents of our own regulatory processes?
So — registered or licensed? Under contract or sold conditional? Yes, words matter.
Dixie MacDonald is a sales representative with Sotheby’s International Realty Canada in Prince Edward County and Quinte, with more than 16 years in residential resale. A trusted and effective Realtor, she welcomes referrals.
In addition to a B.A. in English Literature and two certificates in adult education, she holds the SRES, ABR, GREENre, CCRS, CCGR and PSA designations. She facilitates in the provincial real estate education program and is a professional development instructor with various boards and associations. She writes for REM and on Substack.
Dixie MacDonald Sales Representative Sotheby’s International Realty Canada 1867 Yonge Street, Suite 100, Toronto ON M4S 1Y5 t 416.960.9995 | f 416.960.3222 dixie.macdonald@
Great insights . Thanks for bringing this up.
When testifying in Court, Judges are often surprised when an agent uses licensed to describe themselves. And, “how long have you been in the business”. They just completely lost their credibility as a witness.
I was told years ago changing had big consequence’s. Agents would not need to be attached to only one brokerage if they were licensed versus registered. I do believe there is a big difference. I have always said agents are misleading when they tell people they are licensed when they are not. It sure makes us look bad when we do not even understand we are not licensed. I am for leaving it as registered .
Yet RECO calls us licensed in one of their RECO update questions:
7) To trade in Real Estate in Ontario, brokers and salespeople must be licensed by which of the following:
OREA
RECO
CREA
Ministry of Public and Business Service Delivery
(BTW I answered B and it was marked correct *shrug)
*RECO calls me licensed, I’m licensed.
Sandra, I had heard that before…..great catch for this dialogue. If the regulator can be inconsistent, well…….
The idea registrants, REALTORS®, laissez-faire approach to language is a problem remains a visceral issue for the profession. It is a routinely discussed topic in real estate profession blogs and social media. And to registrants keenly interested in precision in professional conduct, improper use of language is an irritant at best and maddening in the extreme.
Full agreement with Dixie’s suggestion TRESA be amended to (in its iterations and forms) the word register with license. Colloquially, ‘license’ implies permission plus qualification where as ‘registered’ implies a recognition of status. Of course, any notional social or common definition give the terms is trumped by the legislation. Doubtful any registrant (or consumer for that matter) care what term is legislated. And, sadly, it seems registrants are prone to carelessness in the use of terms compliance with the Act compels.
Regarding using ‘under contract’ in lieu of ‘conditionally sold’, two observations:
First, ‘conditionally sold’ and ‘under contract’ are not TRESA regulated terms. There are some contract law or common law applications about use of these terms, perhaps as not being as interchangeable as applies in the jurisdictions of common use. In Ontario, being “under contract” means you have entered into a legally binding agreement with another party where both sides have obligations to perform. That is true in the US. That consumers in Canada, including those Dixie canvassed, misunderstand the term is not a particularly accountable things for a registrant. Registrant use of ‘under contract’ is not inherently incorrect. However, the possible common and social understanding has potential for a consumer to misinterpret it of their own making. And registrants should protect their clients from such misunderstanding, and use of ‘conditionally sold’ is more directly relatable to what exists. Hence, agree with the author that is the appropriate term for all concerned.
Second, and of lesser importance as the first point prevails above all else, in over 20 years of professional conduct on less than one hand could it be counted another registrant utilized ‘under contract’.
Beyond distinguishing ‘under contract’ vs ‘conditionally sold’ there are more terms used from a colloquial perspective.
Use of purchaser when most APS forms use ‘buyer’.
Use of closing in lieu of ‘completion’.
The misuse of APS descriptions of chattels included and fixtures excluded.
The seemingly as so important distinction to call an inspection a viewing, as if the word inspection inherently implies the matter as a condition.
The routinely applied use in Agreements to Lease listing, demanding a tenant applicant/offer to lease must sign off as agreeing to terms that are not enforceable under the Residential Tenancies Act.
And I am sure there is more.
Dixie raises the idea we all should aspire to a higher grading of conduct. And applaud that message.
What perplexes in this sophisticated age, why we are still talking about the aspirations.