The Ontario government has introduced changes to better protect consumers through the Trust in Real Estate Services Act (TRESA). Phase 2 of the reforms were effective December 1, 2023 and will affect most consumers involved in real estate transactions in Ontario.  

Here are some of the most significant changes:

• The change that grabs most people’s attention is the choice sellers now have to share contents of bids with competing buyers.  Previous to Dec. 1,2023 sellers were prohibited from sharing contents of  competing offers. So, this is not a requirement but rather an option for sellers. Choosing to share contents of bids would avoid a "blind" bidding situation. The sharing of content cannot include personal information and must be shared with all buyers who submit a bid. Check out my blog from November for more on this. It will be interesting to see how many sellers will choose to disclose competing offers.  
• People who do not wish to use the services of a Realtor can choose to be a “self-represented party”. A real estate agent representing a client on the other side of a real estate transaction can provide assistance to a self-represented party in a transaction but the real estate agent does so only to promote and protect their own client’s best interests. For example, if a self-represented buyer comes to an open house and wants to submit an offer, the agent could assist in filling out the offer but will offer no advice to the buyer and can also use whatever information they gain from the buyer to help the seller.  Self-represented parties will sign a document stating that they are doing so at their own volition. 
• To better protect consumers from Multiple Representation situations, clients at brokerages such as Bosley Real Estate provide clients with a “designated” representative option. Previously, consumers were represented by the brokerage and all its agents. So, if an agent was working with a client who was bidding on a property listed by a listing agent this would have been a Multiple Representation situaion. Now, if you are working with a designated representative and you put in an offer on a property that is listed by another Bosley agent, you have your designated representative's undivided loyalty to promote and protect your best interests. It is no longer a Multiple Representation situation. All client information is soley for the designated agent and is not shared with other agents inside or outside the brokerage. 
• In TRESA, Phase 2, there is an emphasis on ensuring clear, understandable, and concise language. This includes all documents including disclosures, consents, and acknowledgements. The focus is on consumers being protected by using language that they can easily understand.

There's more. A good online resource available through the Real Estate Council of Ontario’s (RECO) Working With a Real Estate Agent Pamphlet: Things you need to know. 

Also, RECO updated the information provided to buyers and sellers to include TRESA changes. Check it out here: https://www.reco.on.ca/buyers-and-sellers

Other changes might not be as evident or directly relevant to consumers, but the overall goal of TRESA is to improve consumer protections. If you have any questions or want to talk through these changes, please feel free to email me or call. I’m happy to help.