Ontario's TRESA: What Changed and What It Means for You

Ontario's real estate industry has been operating under a fundamentally different legal framework since the Trust in Real Estate Services Act — known as TRESA — came into force. It replaced the Real Estate and Business Brokers Act (REBBA), which had governed the profession for decades, and the changes are more significant than many agents have fully absorbed.

If you are licensed in Ontario and still operating on REBBA habits, this post is for you.

Why TRESA Was Introduced

REBBA was showing its age. It was written for a different era of real estate practice — one that predated the internet, digital transactions, and the complexity of today's market. The provincial government undertook a comprehensive review and concluded that the legislation needed to be rebuilt, not patched.

TRESA was designed to do three things: strengthen consumer protection, modernize the regulatory framework, and give RECO more effective tools to enforce professional standards. All three have direct implications for how agents practise.

The Biggest Changes Under TRESA

Designated Representation

This is the most significant structural change in TRESA and the one that has caused the most confusion in the industry.

Under REBBA, when two clients of the same brokerage were on opposite sides of a transaction, the brokerage was required to provide "multiple representation" — a form of limited agency that restricted what either agent could do for their client.

TRESA introduced designated representation as an alternative. Under this model, a brokerage can designate one agent to represent the buyer and a different agent to represent the seller, with each providing full representation to their respective client — even within the same brokerage.

This is a significant improvement for consumers. But it requires brokerages to have clear policies in place, and agents need to understand exactly when designated representation applies, how to document it, and what their obligations are under each model.

Self-Represented Parties

TRESA introduced a formal category for self-represented parties — buyers or sellers who choose not to be represented by an agent. This was always a reality in the market, but REBBA did not address it clearly.

Under TRESA, agents working with a self-represented party on the other side of a transaction have specific obligations. They must provide a written statement explaining that they are not representing that party and cannot provide them with advice. The self-represented party must acknowledge this in writing.

This sounds straightforward, but it catches agents off guard in practice. If you are representing a seller and the buyer is self-represented, you need to follow this process — even if the buyer seems to understand the situation perfectly well.

Stronger Disclosure Requirements

TRESA expanded and clarified disclosure obligations in several areas:

• Conflicts of interest must be disclosed in writing, promptly, and in a prescribed form.
• Remuneration arrangements — including referral fees and any compensation from sources other than the client — must be disclosed more explicitly than under REBBA.
• Material facts must be disclosed to clients, and the definition of what constitutes a material fact has been clarified.

The key shift is that TRESA moves away from general principles toward specific, documented requirements. "I told them verbally" is no longer sufficient for many disclosures that previously relied on oral communication.

Updated Code of Ethics

TRESA introduced a new Code of Ethics that replaced the one under REBBA. The updated Code is more detailed, more prescriptive, and more directly enforceable.

Key additions include:

• Explicit requirements around fairness, honesty, and integrity in all dealings — not just with clients, but with other registrants
• Clearer rules around advertising and marketing, including social media
• Stronger requirements around client confidentiality, including after a transaction ends
• New provisions around offers and competing offers, including what information can and cannot be shared

Enhanced RECO Powers

TRESA gave RECO significantly stronger enforcement tools. The regulator can now:

• Issue administrative monetary penalties without going through a full disciplinary hearing
• Conduct compliance audits more proactively
• Impose conditions on registration as a preventive measure, not just a disciplinary one

This means that RECO can act faster and more flexibly when it identifies compliance issues. Agents who might previously have received an informal warning may now face a formal penalty.

What Has Not Changed

It is worth being clear about what TRESA did not change, because there is some confusion in the market.

• The basic structure of agency — the fiduciary duties owed to clients — remains the same.
• FINTRAC obligations are federal and are not affected by TRESA.
• The requirement to have a written representation agreement before providing services was already in place and continues under TRESA.
• MLS rules and CREA policies are separate from TRESA and unchanged by it.

The Compliance Gap

The challenge for many Ontario agents is not that they are unaware of TRESA — it is that they have not fully updated their day-to-day practices to reflect it.

The most common gaps we see:

• Designated representation policies that exist on paper at the brokerage level but are not consistently applied at the agent level
• Self-represented party documentation that is skipped or completed after the fact
• Disclosure forms that are used but not fully understood — agents who cannot explain what they are disclosing and why
• Advertising practices that have not been reviewed against the new Code of Ethics

None of these are intentional violations. They are the result of habits formed under REBBA that have not been updated for TRESA.

How to Close the Gap

Review your brokerage's TRESA policies. Your broker of record should have updated policies covering designated representation, self-represented parties, and the new disclosure requirements. If you are not sure what those policies say, ask.

Update your client intake process. The written statements and acknowledgements required under TRESA need to be part of your standard workflow — not something you add when a situation seems to require it.

Know your disclosure obligations cold. TRESA's disclosure requirements are specific and documented. You should be able to explain to a client exactly what you are disclosing, why, and what form it takes.

Review your advertising. The new Code of Ethics has specific requirements for advertising. If you have not reviewed your website, social media profiles, and marketing materials against the updated Code, now is the time.

Use a compliance tool. When a TRESA question comes up in the field — and it will — you need a fast, cited answer. Relying on memory or calling your broker every time is not a sustainable approach.

The Bottom Line

TRESA is not a minor update to REBBA. It is a new framework, and it requires Ontario agents to think carefully about whether their practices have kept pace with the legislation.

The agents who will navigate TRESA successfully are the ones who treat it as an opportunity to sharpen their professional practice — not a compliance burden to manage around.

RuleCheck gives Ontario agents instant, cited answers to TRESA compliance questions in the field. Try it free for one month.