What Law Governs Ontario Realtors? TRESA and RECO, Explained
In late 2023, TRESA replaced the old REBBA — and several rules changed
What laws govern real estate agents in Ontario, and who regulates them?
The core statute is the Trust in Real Estate Services Act (TRESA), and the regulator is the Real Estate Council of Ontario (RECO). On December 1, 2023, TRESA Phase 2 formally replaced the long-standing REBBA. It introduced an updated Code of Ethics (trimmed from 11 pages to 2, focused on integrity, quality of service, and conflicts of interest), gave RECO stronger enforcement powers, and added an ‘open offer process’ that lets a seller authorize disclosure of competing-offer details.
Source: RECO ‘TRESA explained’; Ontario.ca; OREA TRESA materials.
Many people think a real estate agent just ‘shows homes and fills out contracts.’ In fact, agents are a licensed profession under strict legal rules. Understanding them matters not only to people entering the field — as a buyer or seller, you should know what duties an agent owes you, and what changed after the late-2023 reform.
What TRESA is, and why it replaced REBBA
TRESA (the Trust in Real Estate Services Act) is Ontario’s core statute governing real estate trading services. On December 1, 2023, its Phase 2 formally replaced the older REBBA 2002, aiming to increase transparency, strengthen consumer protection, and modernize the rules for how deals actually happen today.
RECO: who regulates agents
The updated Code of Ethics
The Open Offer Process
ℹ️This is a plain-language overview of the legal framework, not legal advice. For a specific transaction dispute, consult a licensed professional or lawyer.
Self-represented parties and the information guide
💡 For buyers and sellers, the three most useful takeaways: (1) check the agent’s licence on RECO; (2) read what duties your representation agreement actually sets out; (3) when selling, learn that you can choose an open or sealed offer process.
Frequently Asked Questions
Under TRESA, can I learn what others bid in a multiple-offer situation?
Only when the seller chooses the ‘open offer process’ in writing may an agent disclose certain competing-offer details (excluding personal information). If the seller keeps the traditional sealed process, offers remain confidential.
How do I verify an agent is properly licensed?
Search the agent’s name or registration number on the Real Estate Council of Ontario (RECO) website to see registration status and any discipline history.
Is REBBA still in effect?
REBBA 2002 has been replaced by TRESA. Ontario’s core real estate services law is now TRESA and its accompanying regulations.
Ontario Home Buying Guide →The Ontario Selling Blueprint →GTA Market Data (Monthly) →
Arthur Zhao
Real Estate Broker · FRI · ABR · SRS · PSA · MCNE · E-PRO · CLHMS & GUILD Elite · REAIS
VP & Branch Manager, Bay Street Group Inc.
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