It’s getting a little close to the TRESA Phase 2 commencement, and the RECO Information Guide is still “coming soon”.
This could be a separate and distinct document or perhaps it will simply be an extended version of the Information Guide for Consumers.
So, here is the actual legislation covering this General Information Guide for Self-Represented parties.
“Information to self-represented parties
(1) If a brokerage provides services to a client in respect of a trade in real estate and provides assistance to a self-represented party in respect of the trade, the brokerage shall provide the following information to the self-represented party before providing the assistance:
1. A disclosure that the brokerage provides services to a client in respect of the trade.
2. A disclosure that the brokerage or a designated representative employed by the brokerage represents a client in respect of the trade.
3. An explanation of the risks to the party that may arise from receiving assistance from the brokerage.
4. A description of the type of assistance that the brokerage is permitted to provide to the party.
5. A recommendation that the party seek independent professional advice. O. Reg. 235/23, s. 4.
(2) The information mentioned in subsection (1) shall be given to the self-represented party in the form and manner determined by the registrar. O. Reg. 357/22, s. 10.
(3) The brokerage shall, with respect to each self-represented party receiving the form mentioned in subsection (2),
(a) explain the information mentioned in subsection (1);
(b) make best efforts to obtain a written acknowledgement from the self-represented party indicating that the information has been received; and
(c) if the self-represented party makes the acknowledgement, provide them with a copy of it. O. Reg. 357/22, s. 10.
This document should be available soon from RECO. Effectively, there will be limited interaction, and it will be necessary to ensure that the registrant does not fall into the “implied agency” trap.
Naturally, getting the self-represented party to acknowledge that they are indeed “on their own” would be helpful.
Brian Madigan LL.B., Broker