TRESA 2002 - What you need to Know?

The Trust in Real Estate Services Act, 2002 (TRESA), is consumer protection legislation governing the conduct of real estate agents and brokerages trading in real estate in the province of Ontario. Phase-1 and Phase 2 has been implemented already. Phase-3 is coming soon.

What has been implemented so far?

PHASE 1 - COMPLETED OCTOBER 2020

The phase one implementation regulations permitted the use of Personal Real Estate Corporations (PREC). To date, there are over 10,000 REALTORS^® in the province who have taken advantage of a PREC. In addition, the phase one regulations amended the Code of Ethics to permit the use of new terms to describe a salesperson and a broker. Per REBBA, a REALTOR® was either referred to as a real estate salespeople, real estate salesperson, or real estate broker. The amended Code now allows a REALTOR to be referred to as real estate agent or REALTOR^®. The term REALTOR^® or real estate agent is only allowed to be used by Canadian Real Estate Association (CREA) Members in good standing.

PHASE 2 - COMPLETED DECEMBER 2023

On July 26th, 2023, the Government of Ontario introduced their second phase of regulations addressing the following areas. TRESA officially replaced REBBA on December 1, 2023 when Phase 2 regulations came into effect.

• Multiple and Designated Representation
• Self-Represented Party
• Sharing Contents of Offers
• Written Agreements and Disclosures
• New Consumer Information Guide
• Code of Ethics
• RECO's Discipline Process

PHASE 3 - REGULATORY WORK TO BEGIN SOON

OREA continues to look ahead to phase three of TRESA:

• Regulations to support specialty certifications for REALTORS® and brokers
• Improved continuing education
• Rules for new administrative money penalties for black-and-white violations of the Code or other TRESA regulations
• Updating RECO's registration process to reduce red tape for REALTORS^®

 Here are some resources to support our agents in meeting their obligations under the legislation, including key changes that took effect December 1, 2023. Download our presentation below to learn more. 

DOWNLOAD TRESA PRESENTATION HERE

Below are other resources that you can use to learn about TRESA and stay up-to-date on new changes. 

´https://www.orea.com/advocacy/TRESA

´https://reco.on.ca/agents-and-brokerages/tresa-explained

´https://www.orea.com/standard-forms-clauses

´https://eregistration.torontomls.net/

FINTRAC - Anti Money Laundering 

It is the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) that requires financial institutions and real estate agents, among other professionals and services covered by the legislation, to obtain information about individuals and corporations who conduct financial transactions. These include depositing funds or buying and selling real estate. The Act also requires real estate agents to keep these identification records for five years.

Canada has had substantial anti-money laundering and terrorist financing legislation since 2001. Since then REALTORS® have had a legal responsibility in Canada’s efforts to combat money laundering and terrorist financing. In addition to these original legal requirements, REALTORS® must document personal information, including occupation, and proof of the identity of their client in each and every transaction. If the client is a corporation, REALTORS® must obtain official corporate documents, and the names of directors. 

REALTORS® may also ask additional questions if they have dealt with the client before. If the buyer or seller is in another city, REALTORS® must use an agent or “mandatary” to identify the buyer or seller or use other non face-to-face methods to ID the client.

REALTORS® are required to report cash transactions of $10,000 or more to FINTRAC and complete a report of all funds they receive.

The compliance requirements affect even a buyer or seller not using the services of a licensed real estate practitioner. If there is a real estate agent involved in the transaction, they are also required by law to verify that private buyer or seller’s information as well.

REALTORS® must also complete a record for ALL funds they receive during the real estate transaction, not just those of $10,000 or more.

PROSENSE REALTY is committed to fulfill all the FINTRAC requirements. Hence, we have created a comprehensive FINTRAC policy for our brokerage that all the brokers and agents have to adhere to. To help you understand, we have provided various guides, presentations, and Q&As. If you have any questions or concerns regarding any FINTRAC policy, please contact the compliance officer immediately. 

Compliance officer: Gurdeep Singh Saini

Contact Information: Call 416-892-9047 | Email prosenserealty@gmail.com

• Training Presentation - Review Here

• Prosense Realty - FINTRAC Office Policy

• Prosense Realty - FINTRAC Checklist

• FINTRAC Q&A

  ** FINTRAC QUIZ **  

If you have reviewed all the training material, Take the QUIZ HERE