The following sets out the first page of the RECO Information Guide:
“About this guide
You have received this guide from a real
estate agent because:
• you are considering receiving services from
the real estate agent, or
• the agent is representing a client in the
transaction, and you might receive assistance
from the agent.
Real estate agents in Ontario are required to
walk you through this guide before providing
services or assistance to you.
In this guide:
• brokerage means a real estate brokerage
• real estate agent and agent mean a real
estate salesperson or broker
• you and client mean a buyer or seller
• buyer and seller can also mean lessee and
lessor respectively
Please read the guide carefully and talk to the agent if you have questions.
What’s inside
Working with a real estate agent — page 2
This section describes the benefits of working with a real estate agent, what you can expect, and the responsibilities of clients.
Know the risks of representing yourself — page 4
This section explains the risks if you choose not to work with a real estate agent and the risks of receiving assistance from a real estate agent who is working for the person on the other side of the transaction.
Signing a contract with a real estate brokerage — page 6
When you work with a real estate agent, you sign a contract with the brokerage the agent works for. These contracts are called representation agreements. This section highlights what you should look for before you sign.
Understanding multiple representation — page 9
Multiple representation means the brokerage, or the agent represents more than one client in the same transaction. This section explains how multiple representation works, the risks, and what to expect if you agree.
How to make a complaint — page 11
Ontario brokerages and real estate agents are accountable for their conduct. This section tells you how to raise a concern with the brokerage and with RECO.
Legal disclaimer: The content of the RECO Information Guide is intended to help buyers and sellers make informed decisions. This guide is not intended to act as a substitute for legal advice or as a replacement for the Trust in Real Estate Services Act, 2002. Readers are encouraged to retain qualified and independent legal counsel to answer any legal questions or address any legal issues. Where there is any discrepancy, the legislation will take precedence.”
COMMENTARY
Actually, the description is a little ‘odd”. You may not have received the Guide from a real estate agent you might have just looked it up yourself on the RECO website. “Walking you through the Guide” seems rather casual language and that’s not what the TRESA legislation said.
At the outset, RECO places the consumer in one of two categories:
- you are considering receiving services from the real estate agent.
- the agent is representing a client in the transaction, and you might receive assistance from the agent.
#1 means you might be hiring an agent or retaining an agent, which would result in an “agency contract with you.
#2 means you might receive some kind of assistance. The agent is really representing someone else, either the Seller or the Buyer, and you are not represented by them.
There is a distinction between services and assistance.
The Brokerage as referenced here engages in the practice of real estate and supervises many independent agents. An agent may fall into one of three categories depending upon the educational courses that they have taken:
- sales representatives, who have probationary registration for the first two years,
- Sales representatives, who have permanent registration follow the first two years,
- Brokers, who have taken additional courses after two years.
Index for the Guide
- Working with a real estate agent
- Know the risks of representing yourself
- Signing a contract with a real estate brokerage
- Understanding multiple representation
- How to make a complaint
Brian Madigan LL.B., Broker