Ontario Real Estate Glossary
PREC Ontario
Personal Real Estate Corporation in Ontario — a single-shareholder corporation through which a registered salesperson or broker can receive commission income. Long-tail variant of personal-real-estate-corporation; see the canonical entry for full coverage.
What is a PREC in Ontario?
A PREC (Personal Real Estate Corporation) in Ontario is a single-shareholder corporation through which a registered Ontario salesperson or broker can earn commission income. PRECs became available October 1, 2020, allowing registrants to access the small-business corporate tax rate, smooth income across years, and split limited income through non-voting family shares.
The controlling shareholder must be the registrant. Family members may hold non-voting shares for limited income-splitting (subject to Tax on Split Income rules). The PREC must have a written agreement with the brokerage, and the brokerage directs commission cheques to the PREC rather than the registrant directly.
This page is a long-tail variant. For the canonical entry with the full ownership rules, the breakeven analysis (~$100k net income), TOSI implications, and a setup walkthrough, see:
Personal Real Estate Corporation — full glossary entry →
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Related terms
Personal Real Estate Corporation
A Personal Real Estate Corporation (PREC) is a single-shareholder corporation through which an Ontario real estate registrant can receive commission income, available since October 2020. The PREC structure allows access to the small-business corporate tax rate and limited income-splitting through non-voting family shareholders.
RECO
The Real Estate Council of Ontario — the provincial regulator that administers the Trust in Real Estate Services Act, registers brokerages and registrants, runs the discipline process, and operates the mandatory insurance program.
TRESA
The Trust in Real Estate Services Act, 2002 — Ontario's consumer protection legislation governing real estate trading. Came fully into force April 1, 2023, replacing the Real Estate and Business Brokers Act (REBBA).