New Ontario Bill Will Update Rules For Realtors

0
A sold sign is shown in front of west-end Toronto homes- File photo- THE CANADIAN PRESS/Graeme Roy

TORONTO:  The Ontario government has introduced a bill to update regulations for realtors that includes new enforcement tools, rules on business structures, and more disclosure of competing bids for homes.

Government and Consumer Services Minister Lisa Thompson said the bill is a needed update to rules put in place in 2002.

“It’s been nearly 20 years since the Real Estate and Business Brokers Act has been passed, and it’s absolutely overdue for a review,’’ she said while introducing what’s to be known as the Trust in Real Estate Services Act.

For consumers, the bill allows realtors to disclose competition bids on homes at the discretion of home sellers. Current rules require all parties to agree before any competing offers are shared.

The bill would give the Real Estate Council of Ontario, charged with oversight of the profession, more powers to fine realtors and suspend licences for malpractice, proactively investigate realtors, as well as allow it to consider a broad range of factors including the public interest when considering registration eligibility.

Updating enforcement powers is important to protect consumers in a fast-changing market, said Tim Hudak, CEO of the Ontario Real Estate Association.

Lisa Thompson-THE CANADIAN PRESS/Chris Young

“When somebody does break the rules, we want to see much more than the current slap on the wrist, including the suspension or elimination of their licence altogether.’’

The bill also gives realtors the ability to incorporate and to be paid through the corporation, providing tax benefits and new ways to manage their income flow.

Hudak said six provinces already allow realtors to join in professions like lawyers and doctors in being able to incorporate and the new Ontario rules will help realtors invest in their business.

The proposed changes also lay the groundwork for a specialist certification program that would make sure those claiming a specialty in areas like commercial or waterfront real estate can back it up. The bill, which came after public consultations at the start of the year, follows closely on recommendations put forward by the Ontario Real Estate Association.

“Real estate salespersons and brokers are the experts for home buyers and sellers,” said Thompson. “Whether a transaction involves a fixer-upper, a move-in ready dream home or a commercial property, every consumer should know that the person they are dealing with is professional, knowledgeable and accountable.”

Between January and March 2019, almost 7,000 consumers and real estate professionals responded to an online government survey and consultation paper about potential changes to the act. “Today marks a historic day for Ontario REALTORS® and the home buyers and sellers they represent,” Tim Hudak added.

“Today, we are grateful to the Ontario Government for delivering on its promise to update the Real Estate and Business Brokers Act, 2002, through the introduction of the Trust in Real Estate Services Bill. ”

“The Real Estate Council of Ontario (RECO) is pleased to have worked closely with the Ministry through the consulta tion and development of this important piece of legislation,” said Michael Beard, CEO RECO.

“The updated legislation will provide enhanced protection for consumers and provide additional clarity for registrants around their role and responsibilities to both the buyer and seller. These changes are a reflection of the rapidly changing and modern marketplace and will help to ensure that co.”

• There are more than 86,000 real estate salespersons, brokers and brokerages in Ontario.

What do you think about this article, let us know?