Now that the TRESA Code of Ethics is in force, there are some changes.
Let’s look at a few of the provisions.
Fraud and Misrepresentations
The Old Code stated:
Inaccurate representations
37. (1) A registrant shall not knowingly make an inaccurate representation in respect of a trade in real estate. O. Reg. 580/05, s. 37 (1).
(2) A registrant shall not knowingly make an inaccurate representation about services provided by the registrant. O. Reg. 580/05, s. 37 (2).
Error, misrepresentation, fraud, etc.
38. A registrant shall use the registrant’s best efforts to prevent error, misrepresentation, fraud or any unethical practice in respect of a trade in real estate. O. Reg. 580/05, s. 38.
The New Code states:
Fraud
4. A registrant shall not engage in or be a party to fraud.
Misrepresentation, etc.
5. In carrying on business, a registrant,
(a) shall make best efforts to ensure that any representations are accurate and are not misleading; and
(b) shall not engage in or be a party to misrepresentation or any unethical practice.
COMMENT
Inaccurate Representations
We start out with “inaccurate representations”. The Old Code said the real estate agent was not to make such a statement “knowingly”. Now, that has been moved over to “best efforts”.
Error
The Old Code said “best efforts” to prevent error. This matter is overlooked in the New Code.
Fraud
The Old Code said “best efforts” to prevent fraud. The New Code says “not engage”. So, simply don’t do it.
Misrepresentation
The Old Code said “best efforts” to prevent misrepresentation. The New Code says “best efforts to ensure that any representations are accurate and are not misleading”.
Unethical Practice
The Old Code said “best efforts” to prevent unethical practice. The New Code says “not engage”. So, simply don’t do it.
In summary:
ISSUE REBBA TRESA
Inaccurate knowingly best efforts
Error best efforts omitted
Fraud best efforts not engage
Misrepresentation best efforts best efforts
Unethical best efforts not engage
Conclusion
All in all, this would appear to be an upgrade in respect to an agent’s duties. Best efforts is an upgrade over knowingly, and not engage is an upgrade over best efforts.
It does seem surprising that the entire issue of “errors” was simply overlooked. Hopefully, on any significant issue, inaccurate representations, misrepresentations, fraud and unethical practice would be sufficient to catch such a problem.
Brian Madigan LL.B., Broker