What is TRESA?

TRESA stands for the Trust in Real Estate Services Act. It is legislation enacted in Ontario, Canada, aimed at regulating real estate professionals and protecting consumers in real estate transactions. TRESA came into effect on October 1, 2020, replacing the Real Estate and Business Brokers Act, 2002 (REBBA 2002).

Key features of TRESA include:

1. Enhanced Consumer Protection: TRESA introduces stronger consumer protection measures, including increased transparency, disclosure requirements, and penalties for non-compliance.

2. New Code of Ethics: The legislation establishes a new Code of Ethics that sets out standards of professional conduct for real estate professionals, including real estate agents and brokerages.

3. Strengthened Regulatory Authority: TRESA grants enhanced regulatory authority to the Real Estate Council of Ontario (RECO), the regulatory body responsible for overseeing real estate professionals in Ontario. RECO has expanded powers to investigate complaints, enforce compliance, and impose disciplinary actions when necessary.

4. Educational Requirements: TRESA introduces updated educational requirements for individuals seeking to become registered real estate professionals in Ontario. This includes mandatory pre-registration education and ongoing professional development.

5. Prohibition of "Double-Ending": TRESA prohibits the practice of "double-ending," also known as multiple representation or dual agency, except in specific circumstances outlined in the legislation. This is aimed at mitigating conflicts of interest and ensuring fair representation for both buyers and sellers in real estate transactions.

6. Stronger Penalties for Non-Compliance: TRESA imposes stricter penalties for violations of the legislation, including increased fines, license suspensions, and license revocations for real estate professionals found to be in breach of the Code of Ethics or regulatory requirements.

Overall, TRESA represents a significant overhaul of the regulatory framework governing real estate services in Ontario, with a focus on enhancing consumer protection, promoting professionalism, and ensuring the integrity of real estate transactions.