Updated: December 1, 2023
Your TRESA Guide
Intro
What is TRESA
Trust in Real Estate Services Act (TRESA) is replacing the Real Estate and Business Brokers Act (REBBA) and Phase 2 of the new regulations are effective as of December 1, 2023.
As a qualified realtor, I adhere to these regulations, ensuring transparency, accountability, and ethical conduct in guiding both buyers and sellers navigate the real estate market. Feel confident in choosing me as your realtor under the updated framework of TRESA.
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Guided Principles
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Transparency
TRESA is expected to raise professional standards for real estate professionals, ensuring a higher level of expertise, to provide you, the consumers with the clarity needed for confident and informed decisions.
Accountability
TRESA aims to enhance consumer protection by introducing measures that promote accountability in real estate transactions, and to ensure that every step of the process is conducted with integrity.
Ethical Conduct
TRESA aims to making things crystal clear and keeping you, the consumer, in the loop, so that you are well-informed and engaged throughout the real estate transactions.
Changes
Shen's 4-Step Process
Read and review the RECO guide.
Ask Shen any questions you have.
Ask Shen more questions.
Only when you're comfortable:
1. Sign with Shen
2. Represent yourself
3. Sign with another agent
For you
What This Means
Multiple and Designated Representation
In a real estate transaction, both buyer and seller can have agents from the same brokerage (e.g., Shen Real Estate), but choosing designated representation must ben decided at the deal's start.
If a realtor represents both seller and a prospective buyer in the same transaction, they must disclose this fact before accepting from buyers makes a written offer. Representing both buyer and seller - multiple representation - limits the realtor’s advice on issues such as money or motivation. Under TRESA, the brokerage must get written acknowledgment from both buyer and seller that they consent to this transaction under a multiple representation.
Benefits:
This approach ensures that both the seller and the buyer get dedicated representation within the same brokerage. It simplifies the process and provides clarity for everyone involved in the real estate transaction.
Open Offer Process
Before
In Ontario, only the number of offers were allowed to be disclosed on a listing, known as blind bidding.
Now
As a seller, you can decide to conduct an open offer or a closed offer in a transaction. If you choose an open offer, you can now give permission to your agent to share details of the competitive offer with potential buyers, without revealing any personal information about the buyers. Sellers are able to choose how much information is shared, and can change their minds at any time.
Introduction of Self-Represented Party
Under TRESA, the term 'customer' is replaced with 'self-represented party' to eliminate confusion. Self-represented parties, individuals not working with any brokerage, can't receive services or advice from realtors unless beneficial to a client in that transaction. They handle transactions independently, negotiating terms, understanding legal and financial aspects, and completing paperwork without a realtor's assistance.
Written Agreements and Disclosures
Before
Buyers had to investigate properties independently, and sellers were only obligated to disclose significant hidden defects that made the property unsafe or uninhabitable.
Now
Under TRESA, any services promised to clients, like commission, referral fees, or staging, must be clearly listed in the written agreement. Notably, if a seller has a legal duty to disclose something, the agent must share this with every interested buyers. This means fewer pre-listing inspections, caution for sellers, and more transparency in real estate transactions.
Consumer Information Guide (RECO guide)
The Real Estate Council of Ontario (RECO) will be releasing a helpful guide for consumers. It's a must-give to clients and self-represented parties before any services can begin. Realtors will also walk you through this guide, which aims to keep everyone on the same page. No DIY guides allowed, and realtors can't give advice to self-represented parties until they've got this guide.
Code of Ethics
The Real Estate Council of Ontario (RECO) will be releasing a helpful guide for consumers. It's a must-give to clients and self-represented parties before any services can begin. Realtors will also walk you through this guide, which aims to keep everyone on the same page. No DIY guides allowed, and realtors can't give advice to self-represented parties until they've got this guide.
QUESTIONS?
Shen is here to help.
Whether you need clarification around the new offer process options, be it buying, selling, or self-representation, Shen is here to provide expert guidance.
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