Ontario’s real estate market has always been fast-moving and complex, but the introduction of the Trust in Real Estate Services Act (TRESA) marks one of the most significant regulatory changes in decades. With Phase 2 coming fully into force on December 1, 2023, TRESA builds on and ultimately replaces the long-standing Real Estate and Business Brokers Act (REBBA 2002), essentially a renaming, and fundamentally reshapes how buyers, sellers, and real estate professionals interact. (A third and final phase of implementation is still underway.)
At its core, TRESA is designed to improve transparency, strengthen consumer protection, and modernize the industry. While those goals may sound broad, the practical impact is very real for anyone buying or selling property in Ontario today.
How TRESA Changes Client Representation
One of the biggest shifts under TRESA is the emphasis on clarity in relationships. In the past, terms like “client” and “customer” often caused confusion for consumers. TRESA simplifies this by clearly distinguishing between a client, who receives full representation, and a self-represented party (SRP), who chooses to proceed without formal representation. For SRPs, this means that real estate agents cannot provide services, opinions, or advice — they may only provide assistance that is incidental to the representation of their own clients. This change ensures that individuals understand exactly what level of service and protection they are receiving, eliminating grey areas that previously led to misunderstandings.
Greater Transparency for Buyers and Sellers
Another major change involves disclosure and transparency. Real estate professionals are now required to provide more detailed information to their clients, including material facts that could impact a property’s value or desirability. Buyers, in particular, benefit from this increased openness, as it allows them to make more informed decisions in what is often the largest purchase of their lives.
Changes to Multiple Offers and Open Bidding
TRESA also introduces new rules around bidding and competing offers, an area that has long been controversial in Ontario. Sellers now have the option to disclose details of competing offers to buyers — including the offer amount — creating what is sometimes referred to as an “open bidding” environment.
Read more: Can Non-Canadian Citizens Buy Property in Canada?
It’s worth noting that while sellers can direct agents to share offer contents, agents are prohibited from disclosing any information that would identify the buyer making the offer. And while open bidding is not mandatory, it represents a significant shift toward transparency in a process that has traditionally been opaque.
Designated Representation and Multiple Representation
Equally important are the changes to representation. TRESA maintains the possibility of multiple representation, where one brokerage represents both the buyer and seller, but adds stricter requirements for disclosure and consent. More notably, it introduces “designated representation,” allowing different agents within the same brokerage to represent each party independently. This approach aims to reduce conflicts of interest while still offering flexibility in how transactions are handled.
Higher Professional Standards and RECO Enforcement
Beyond the transaction itself, TRESA raises the bar for professionalism across the industry. A revised Code of Ethics places greater emphasis on honesty, integrity, and acting in the client’s best interests. Real estate professionals are also subject to enhanced oversight, with the Real Estate Council of Ontario (RECO) given stronger enforcement powers and the ability to impose stricter penalties for misconduct. For instance, RECO can now handle allegations of law breaches — not just Code of Ethics violations — and can suspend, revoke, or apply conditions to an agent’s registration.
For consumers, this means increased protection. There are clearer rules, better information, and stronger accountability if something goes wrong. For agents, it means a higher standard of conduct and a greater responsibility to educate and guide their clients properly.
The New Consumer Information Guide
Another notable addition is the mandatory consumer information guide. Before entering into any formal relationship, buyers and sellers must receive and acknowledge this guide, which outlines their rights, risks, and the role of the real estate professional. This reinforces the concept of “informed consent,” ensuring that individuals understand what they are agreeing to before moving forward.
What TRESA Means for Ontario Consumers
Ultimately, TRESA reflects a broader shift in Ontario’s real estate landscape. It acknowledges that today’s buyers and sellers expect more transparency, clearer communication, and stronger protections. While the law does introduce additional paperwork and procedural steps, these are largely intended to create a more trustworthy and accountable system.
For anyone entering the market — whether as a first-time buyer or a seasoned seller — understanding TRESA is no longer optional. It is essential. The rules of the game have changed, and those who take the time to understand them will be better positioned to navigate Ontario’s real estate market with confidence.
Have questions about how TRESA affects your next move? The new rules put more power in your hands — but navigating them is a lot easier with someone who knows them inside and out. Whether you’re buying, selling, or just starting to think about it, I’d love to help. Reach out anytime.