What You Need To Know about the RECO Information Guide
Tuesday Jan 30th, 2024
Who is RECO?
The Real Estate Council of Ontario (RECO) regulates real estate professionals in the province. They protect the public interest through a safe and informed marketplace. It is a not-for-profit corporation that is delegated by the provincial government to administer and enforce the Trust in Real Estate Services Act, 2002 (TRESA) and associated regulations.
What is the information guide?
The guide explains what a buyer or seller should expect when working with a real estate agent & the things you need to know. It is intended to help buyers and sellers make informed decisions. The RECO information guide.
As of December 1, 2023, Real Estate Agents are required to provide the RECO information guide & form and explain to potential clients the content before any services or assistance are provided. It is up to the Real Estate Agent to maintain their own records verifying that the information guide & forms have been provided, explained and acknowledged from a buyer or seller.
What’s in the guide?
The benefits of working with a real estate agent and what you can expect. Agents in Ontario must be registered, which requires completing the necessary education, and carrying consumer deposit insurance and professional liability insurance. Real estate agents provide valuable information, advice, and guidance to buyers and sellers as they navigate the complexities of real estate transactions. It explains how an agent can assist you whether you are a buyer or a seller. It also talks about the duties the brokerage and agent owe you as a client and your responsibilities as the client.
Know the risks of representing yourself
If you are involved in a real estate transaction and are not a client of a real estate brokerage, you are considered a self-represented party. This means that you have chosen to represent yourself, which has different rights and responsibilities. Very few buyers or sellers make this choice. 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.
What signing a contract with a brokerage means. 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 Multi representation. 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. 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. At the bottom of the agreement is a form the real estate agent needs you to fill out & sign confirming that you have gone through the agreement with them and are making an informed decision.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.