TRESA

What is TRESA in Ontario real estate?

TRESA is the Trust in Real Estate Services Act, 2002, the consumer-protection legislation that governs every real estate trade in Ontario. It came fully into force on April 1, 2023, replacing the Real Estate and Business Brokers Act (REBBA) under which the industry had operated since 2002. TRESA is administered by RECO and applies to every brokerage, broker, and salesperson registered to trade in Ontario real estate.

What changed when TRESA replaced REBBA

The Phase 2 amendments that brought TRESA fully into force introduced several substantive changes:

• Designated representation: a brokerage may now designate one registrant to represent the buyer and a different registrant to represent the seller in the same transaction without putting the brokerage itself in multiple representation
• Self-represented party: replaces the older "customer" concept; defines what the registrant owes someone they are not representing
• Information guide: RECO publishes a standard guide every registrant must give to consumers before providing services
• Administrative monetary penalties: RECO discipline panels can now impose fines, a remedy not available under REBBA
• Enhanced disclosure requirements: broader and more specific disclosure obligations around material facts, representation status, and conflicts of interest

The Code of Ethics was also restructured under TRESA to align with the new representation framework.

TRESA's regulatory architecture

TRESA delegates day-to-day administration to RECO, the Real Estate Council of Ontario. RECO registers brokerages and registrants, runs the discipline process, operates the mandatory insurance program, and publishes regulatory guidance. The Ministry of Public and Business Service Delivery oversees the legislation but does not handle individual files.

If a question asks which Act regulates Ontario real estate trading, the answer is TRESA. If it asks who administers TRESA, the answer is RECO.

Where this appears in your Humber program

TRESA is foundational content in Course 1: Real Estate Essentials under the regulatory framework module, with deeper coverage of designated representation, multiple representation, and the Code of Ethics in Course 2 and the broker program. Recent TRESA bulletins are core continuing-education content because the Act continues to be refined through regulation.

The TRESA representation framework

TRESA recognizes three relationships between a registrant and a consumer:

• Client: a consumer who has signed a written agreement with the brokerage (Buyer Representation Agreement or Listing Agreement). The brokerage owes the full TRESA-level duties: undivided loyalty, full disclosure of material facts known to the brokerage, confidentiality of negotiating information, reasonable care and skill, and the obligation to act in the client's best interest.
• Self-represented party (SRP): a consumer who is not represented by the brokerage. The registrant must provide the RECO Information Guide, identify themselves as not representing this party, and refrain from providing advice that crosses into representation. SRPs receive significantly narrower service.
• Designated representation: a brokerage may designate specific registrants within the firm to represent the buyer and the seller in the same transaction. The brokerage itself remains in multiple representation, but only the designated registrants — not the brokerage as a whole — are accountable for representing each side. This was new under TRESA Phase 2 and is heavily exam-tested.

Multiple representation (where one registrant or one brokerage represents both buyer and seller without designation) still exists under TRESA but is treated as the option of last resort, with extensive disclosure and consent requirements. The 2023 amendments significantly tightened the rules around when multiple representation is permitted.

TRESA Code of Ethics

The TRESA Code of Ethics sets out enforceable standards of professional conduct. Key obligations include:

• Fairness, honesty, and integrity in dealings with clients, customers, other registrants, and the public
• Best interests of the client — registrants must promote and protect the client's best interests at all times
• Material facts disclosure — duty to discover and disclose material facts about a property even if the client tries to conceal them, in dealings with the consumer
• Avoiding conflicts of interest or, where unavoidable, disclosing them in writing and obtaining informed consent
• Confidentiality of client information, including after the relationship ends, with limited exceptions for required disclosures
• Compliance with all applicable law, including FINTRAC, the Personal Information Protection and Electronic Documents Act (PIPEDA), and TRESA itself

Code of Ethics breaches are adjudicated by RECO's Discipline Committee. Penalties under the post-2023 framework include fines (administrative monetary penalties up to $50,000 for a registrant and $100,000 for a brokerage), conditions or restrictions on registration, suspension, or revocation. Course 1 and the Salesperson Final Exam contain a heavy concentration of Code-of-Ethics scenario questions; expect to see at least 8-12 such questions on the Final.

How TRESA differs from other provinces

TRESA is Ontario-specific. Other provinces have analogous legislation: BC's Real Estate Services Act (administered by BCFSA), Alberta's Real Estate Act (administered by RECA), Quebec's Real Estate Brokerage Act (administered by OACIQ). The principles overlap (fiduciary duties, mandatory disclosure, consumer protection) but the specific rules differ enough that an Ontario registrant moving provinces typically takes the Interprovincial Challenge Exam to convert their license. Cross-border deals require the registrant to understand both jurisdictions or to refer the deal to a registrant licensed in the other province.

Frequently asked questions

What does TRESA stand for?

TRESA stands for the Trust in Real Estate Services Act, 2002. The Act was passed in 2002 but operated under its original title (Real Estate and Business Brokers Act) until December 1, 2023, when its full Phase 2 amendments came into force and the renaming took effect.

What is the difference between TRESA and REBBA?

TRESA replaced REBBA in stages from 2020 through April 2023. The substantive differences include designated representation (TRESA permits it, REBBA did not), self-represented parties (TRESA term, REBBA used "customer"), administrative monetary penalties (available under TRESA, not REBBA), and a restructured Code of Ethics. The same underlying statute was renamed; references to "REBBA 2002" in older materials map to TRESA today.

When did TRESA come into effect?

TRESA's Phase 1 amendments took effect October 1, 2020 (introducing Personal Real Estate Corporations). Phase 2, which included the rename from REBBA, the new representation framework, the Code of Ethics restructure, and administrative monetary penalties, came fully into force on December 1, 2023.

Who enforces TRESA in Ontario?

TRESA is enforced by the Real Estate Council of Ontario (RECO), the provincial regulator. RECO investigates consumer complaints, runs discipline panel hearings under the Code of Ethics, suspends or revokes registrations, and imposes administrative monetary penalties. The Ministry of Public and Business Service Delivery oversees the legislation but does not handle individual enforcement.

Practice this topic

ExamAce covers TRESA's structure, the REBBA-to-TRESA transition, and the new representation framework in the Course 1 question bank, with current-cycle TRESA updates in the CE annual update bank.

For the practical Phase 2 changes — designated representation, written buyer representation agreements, the RECO information guide, and the updated Code of Ethics — see our TRESA Phase 2 explainer.