Editor's note, October 6, 2026: this article was reviewed and rewritten in our accuracy check. An earlier version contained fine amounts, complaint statistics and offer-strategy percentages we could not trace, and a reference to a 'customer service agreement' that no longer exists under TRESA; they have been removed or replaced with figures from the sources listed at the end of the article.
The Trust in Real Estate Services Act, 2002 (TRESA) is the law that governs real estate agents and brokerages in Ontario. Its second phase came into force on December 1, 2023, replacing the rules that had applied under the old name (REBBA), and the Real Estate Council of Ontario (RECO) enforces it. Here is what it means for you as a buyer.
1. You are either a client or self-represented
TRESA removed the old "customer" category. If a brokerage represents you under a representation agreement, you are its client and it owes you duties set out in the Code of Ethics: to promote and protect your best interests (s.8); to provide conscientious, courteous and responsive service with reasonable knowledge, skill and competence (s.9); to keep your information confidential unless you consent in writing (s.12); to disclose any conflict of interest and get your written consent (s.13). Anyone else in the trade is self-represented (any party to the trade who is not a brokerage's client). Before helping a self-represented buyer, a brokerage must give them the "Information and Disclosure to Self-represented Party" form, which explains what the brokerage will and will not do for them. RECO warns that self-represented buyers carry real risk: no one in the deal is advising them.
2. A written agreement before you make an offer
A buyer representation agreement must be in writing and given to you before you make an offer. RECO says it should set out:
- what it covers: a specific property, an area or a type of property
- the services the brokerage will provide
- what you will pay, and how that changes if the seller pays some or all of your brokerage's fee
- how and when the agreement can end
- an expiry date, shown prominently on the first page
There is no standard length: it can cover a day, a few weeks or months, and a single property or a type of property. Read the expiry date and what you will pay before you sign. Commission is not set by RECO or any board; it is agreed between you and the brokerage.
3. The RECO Information Guide
Every agent must give you RECO's Information Guide, and explain it, before providing services. It describes the services you can expect, the difference between being a client and self-represented, and how multiple representation works.
4. Designated representation and multiple representation
A brokerage may designate one or more of its agents to represent you. If a different agent at the same brokerage is designated to represent the seller, each agent continues to act for their own client and, according to RECO's bulletin, that is not multiple representation. Multiple representation arises when the same brokerage (without designation) or the same designated agent represents more than one client in a trade, for example both the buyer and the seller. It requires written disclosure to, and written consent from, every client.
5. Competing offers
- If you make a written offer and there are competing offers, the seller's brokerage must tell everyone who made a written offer how many offers there are.
- With the seller's written direction, the seller's brokerage may also share the substance of competing offers (an "open offer" process), but never anything that identifies who made them.
- Your agent must show you every property that meets your criteria, whatever commission is offered on it.
See our guide to competing offers in Toronto for how to use this information.
6. Rebates and incentives in writing
RECO's buyer checklist says to get any rebate or incentive an agent offers documented in writing.
What to do before you sign anything
- Check the agent and brokerage on RECO's public register, which shows registration and any enforcement activity in the past 5 years.
- Read the representation agreement's scope, term and fee section.
- Ask how the brokerage handles a property listed by one of its own agents.
- Ask what happens to the fee if the seller pays some or all of your brokerage's commission.
If something goes wrong, RECO's website explains how to raise a concern about an agent or brokerage. This article is general information, not legal advice. Ask Zara, Summitly's AI virtual agent, or a licensed Summitly agent can walk you through a representation agreement.
