Thinking of buying or selling a home in 2024? It pays to know the best way to work with your realtor, and as of Dec.1, 2023 Ontario has changed the requirements. A media release on Nov.28, 2023 from the Ministry of Public and Business Service Delivery opened with: “The Ontario government is updating the rules governing the province’s real estate brokerages, brokers, and salespersons to strengthen consumer protection, educate home buyers and sellers, and enhance professionalism. The new rules, effective December 1, 2023, will give Ontarians more choice in the real estate trade process by allowing a brokerage to disclose the details of competing offers. They also include an updated Code of Ethics to strengthen professional obligations related to integrity, conflict of interest and the prevention of fraud.” The Current spoke with local broker of record Patricia Scott, of Queenswood Real Estate in Barry’s Bay, to learn how these changes affect buyers, sellers and realtors in the Valley.
Scott pointed out two main things that consumers should be aware of:
- First, if you want to purchase or sell property you must either be a realtor’s client or be prepared to do all the work yourself as a self-represented party. Realtors cannot provide you with any information, advice, or handle any of the fiduciary responsibilities unless you are their client. As a client you will receive a copy of the Real Estate Council of Ontario (RECO) Guide.
- Second, the new rules allow for the Open Offer process, at the seller’s discretion. Realtors may reveal offer price, closing date, conditions, from competing offers but they may not disclose any personal information about competing offers.
Realtors will send the RECO Guide to everyone – whether an existing or new client – and explain it, so that the client can decide if they want their relationship with the realtor to be either a designated representation or a brokerage representation. This, Scott said, is “all about confidentiality. With designated representation, confidential information cannot even be shared with colleagues in the realtor’s own office.” Brokerage designation, however, is what many people have been used to. For existing listings that continue after Dec.1st, the realtor must decide whether the representation will be designated or brokerage.
Offers dated Dec.1st or after must contain all required new paperwork. Scott explained there is a “huge learning curve.” She suggested realtors will need to be friendly to competing agents because “we are all going to struggle to get it right [on the first few transactions] to make sure we have everything in order.”
Scott pointed out another requirement under the new rules that she believes will provide sellers with much more confidence. Listing agreements dated after Dec.1, 2023 can have a schedule attached where the realtor lists in writing all the services to be provided — things such as a lockbox on the premises, using professional and/or drone photography, putting the property on MLS, etc. Scott said, “To me, that is gold — because it’s in writing. Many realtors say they will do this, [they] will do that, and they do nothing.”
As noted above Scott encourages people to talk to their realtor about it, to avoid any confusion. As for the updated Code of Ethics, Scott said that RECO always had a disciplinary arm, which is strengthened by the new legislation. Click HERE to download and read the new RECO Guide.
Communications Branch,Ministry of Public and Business Service Delivery(2023,Nov.28)Ontario Modernizing Rules Governing Province’s Real Estate Services Sector – New protections designed to strengthen consumer confidence when dealing with brokerages, brokers, and salespersons [media release]
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