Phase 2 Regulations -
Real Estate and Business Brokers Act, 2002 / Trust in Real Estate Services Act, 2020
O. Reg. 567/05
O. Reg. 579/05
O. Reg. 580/05 (to be repealed)
2 new regulations
Regulation - LGIC
Bill or Act:
Real Estate and Business Brokers Act, 2002
Summary of Proposal:
On March 4, 2020, the Trust in Real Estate Services Act, 2020 (TRESA, 2020) received Royal Assent. TRESA, 2020 amends the Real Estate and Business Brokers Act, 2002 (REBBA), the legislation that governs real estate brokerages, brokers and salespersons (registrants) in Ontario. REBBA and its regulations are administered and enforced by the Real Estate Council of Ontario (RECO).
The Ministry of Government and Consumer Services is now consulting on the second phase of draft regulations needed to bring additional provisions of TRESA, 2020 into force, including:
New Code of Ethics Regulation
The ministry first consulted publicly on a proposed updated, principle-based Code from June 1 through July 2, 2021. Informed by the feedback from that consultation, the ministry is proposing further updates to the principle-based Code and is bringing them forward now in conjunction with related regulatory proposals. This proposal includes moving technical and procedural requirements in the current Code to other regulations under REBBA.
The ministry is proposing changes to give the public more choice in the real estate trade process by allowing a registrant to conduct an open offer process and disclose the details of competing offers at the seller's direction. Registrants could not disclose any personal information or identifying information through this process.
Information and Disclosure Obligations
The ministry is proposing changes to improve the information registrants must provide to buyers, sellers and others in relation to providing real estate services. This is intended to help the public understand their choices for engaging or interacting with a registrant, as well as the different obligations registrants have under the different forms of engagement or interaction.
Real Estate Council of Ontario Powers and Tools
Changes are being proposed to help RECO operate more efficiently and focus its compliance and enforcement efforts where they are needed and most effective. The proposed changes include: a) updates to the rules about the information RECO's Registrar must make publicly available; b) specifying the purposes for which the Registrar can require registrants to provide transactional data and related information to the Registrar; and c) providing the Registrar with additional authority over administrative matters related to certain advertising, record-keeping and notice requirements.
New Discipline Committee Regulation
The ministry is proposing to create a new regulation dealing with the rules and procedures of the Discipline Committee, incorporating the relevant provisions currently found in the Code and General Regulation.
The ministry is proposing regulation changes to add a condition to the exemption for auctioneers. The draft regulation proposes that as a condition to qualify for the exemption, an auctioneer must have no duties other than receiving, managing and recording competing bids and accepting the highest bid as part of an auction bidding process.
The ministry is also proposing to proclaim certain provisions of the Trust in Real Estate Services Act, 2020.
Interested parties may submit comments by responding to this posting or by sending an email to email@example.com no later than January 24, 2022. The ministry is proposing the Phase 2 regulations, if approved, would come into force on September 1, 2022.
Analysis of Regulatory Impact:
The ministry has identified various benefits to the proposed regulatory changes, if approved and implemented, including:
- Enhanced professionalism among registrants as a result of the revised and updated Code of Ethics regulation
- Strengthened consumer protection through enhanced disclosures and information for the public on a registrant's obligations to buyers, sellers and others in relation to providing real estate services
- Updated rules to help the regulator, RECO, operate more efficiently and focus its compliance and enforcement efforts where they are most needed and most effective
The ministry anticipates there will be administrative costs for registrants if the regulatory proposals are approved and implemented, for example, learning about the changes, recordkeeping, and reporting to the regulator. The ministry would be interested in receiving comments and feedback from registrants pertaining to specific anticipated one-time and ongoing costs and benefits to assist in quantifying the impacts of implementing these regulatory proposals.
December 10, 2021
Comments Due Date:
January 24, 2022
REBBA/TRESA Regulatory Consultation
Policy, Planning and Oversight Division
Ministry of Government and Consumer Services
56 Wellesley St. W., 6th Floor
Toronto, ON M7A 1C1