Tuesday morning, the Ontario Real Estate Association (OREA) released its latest whitepaper on improving professional standards for Ontario REALTORS®.
The report, titled Continuing to Raise the Bar for Real Estate in Ontario, contains nine policy recommendations that they feel will help make Ontario "a leader in North America when it comes to professional standards in real estate," according to a press release.
Following the passage of the Trust in Real Estate Services Act (TRESA) in 2020 — a modernizing piece of legislation heavily advocated for by OREA — the provincial government pledged to implement the Act in three phases.
The "bold" policy recommendations OREA makes in this most recent whitepaper are intended to be implemented in the TRESA's third phase, "aimed at improving consumer confidence with increased protections, raising the bar on REALTOR® education and professionalism, and deterring bad behaviours with stronger penalties."
The Recommendations
Improving Consumer Confidence With Increased Protections:
First up is improving consumer confidence with increased protections. In order to achieve this, OREA has recommended the elimination of the two-tiered "loophole" system of consumer protection by requiring auctioneers who transact real estate to register with the Real Estate Council of Ontario (RECO), the regulator.
They have also recommended TRESA be amended to introduce new rules regarding latent defects and disclosure obligations to ensure consumers have access to all the information they need to make an informed decision when purchasing a home. Along that same vein, OREA is also asking that there be new rules including written disclosure for guaranteed sales, ensuring the terms and conditions are clearly outlined to the consumer.
Finally, they recommend that Ombudsperson oversight (a government-appointed public advocate) would help instill registrant and public confidence in the regulator’s programs and processes, bringing RECO in-line with over 1,000 other government agencies.
Raising The Bar On Education And Professionalism:
OREA's second major objective is to increase professionalism within the field. To do this, they are recommending a "better, more practical education" by introducing a new two-year articling and mentorship requirement for new registrants, ensuring REALTORS® are better prepared and equipped to handle the market’s evolving demands.
Secondly, they are asking that the government enact Section 8 of TRESA to permit registrants to use specialty certification designations. Possible designations could include commercial, farm/agriculture, waterfront/recreational, or condominiums.
Deterring Bad Behaviour With Stronger Penalties:
"When one unethical agent is caught breaking the law, it erodes consumer confidence in the home buying and selling process," says OREA. "OREA refuses to stand idly by while a few individuals take advantage of consumers and tarnish the reputation of thousands of hard-working real estate professionals across the province."
In order to combat this, OREA is recommending that TRESA permits Administrative Monetary Penalties (AMPs) for black-and-white, indefensible actions, like advertising violations. They are also asking that RECO be granted the ability to order disgorgement, thereby forcing a registrant to repay all, or some, of the profits earned through a breach of TRESA and its Code of Ethics, ensuring that any proceeds from such breaches are returned to the victims and impacted parties. The hope being to eliminate the financial incentive for bad behaviour.
Finally, OREA recommends increasing the mandatory “cooling off” period to two years less a day before the offending individual can reapply for registration following a major violation of TRESA.
OREA President Rick Kedzior stresses the importance of the outlined recommendations.
“Buying or selling a home is one of the biggest financial decisions most Ontarians will make in their lifetime. They deserve a REALTOR® they can trust and depend on during this transaction,” he says. “By implementing OREA’s nine bold policy proposals, the Government of Ontario has the opportunity to continue to lead in professional standards and consumer protections, strengthening Ontario real estate for generations to come.”
