The Real Estate Council of Ontario (RECO) is the licensing and regulatory body for Ontario’s real estate professionals. All Toronto Real Estate Board (TREB) Members are RECO registrants and are licensed under the Real Estate and Business Brokers Act (REBBA), which is administered by RECO on behalf of the Ontario Ministry of Consumer and Business Services.
In Ontario, a Broker is a person licensed by RECO to trade in real estate. Real Estate Brokers may form brokerages or offices, while a salesperson is someone employed, appointed or authorized by brokerages to trade in real estate. The term ‘agent’ is not used to describe a real estate broker or salesperson in Ontario.
The term ‘REALTOR®’ is restricted to those real estate practitioners who have chosen to belong to local, provincial and national real estate associations. In so doing, they have agreed to abide by a strict Code of Ethics that ensures the highest level of service and integrity. All TREB Members are REALTORS®.
Registrants in any province who become members of organized real estate have agreed to abide by the REALTOR® Code and its accompanying Articles and Interpretations. The Code establishes a standard of conduct, which in many respects exceeds basic legal requirements and ensures that that the rights and interests of consumers of real estate services are protected.
The Real Estate Council of Ontario (RECO) requires registrants to disclose in writing the nature of the services they are providing and encourages them to obtain written acknowledgement of that disclosure. This disclosure is usually done with an Ontario Real Estate Association (OREA) brochure entitled Working with a REALTOR®, the Agency Relationship, a brochure which includes a tear-off statement that the consumer signs and the REALTOR® retains as proof that disclosure was made. Signing the statement does not obligate the consumer in any way. It serves as proof that the REALTOR® has discussed the matter with the consumer.
In real estate, there are three kinds of agency relationship:
– Source: Ontario Real Estate Association