TORONTO, October 6, 2017 -- The Toronto Real Estate Board (TREB) welcomes the provincial announcement on proposed changes to the Real Estate and Business Brokers Act, 2002 (REBBA) pertaining to conflict of interest issues that arise in multiple representation situations in real estate transactions.
“TREB is pleased that the Ontario Government is listening to the advice provided by the industry and is working to bring forward a workable solution. Throughout 2017, TREB has demonstrated its commitment to consumer protection and efficiency for real estate transactions in meetings with the Ministry of Government and Consumer Services, and provided input on their ongoing consultations regarding potential changes to REBBA,” said TREB President Tim Syrianos.
Phase One of the current provincial review is focusing on issues associated with multiple representation situations, consumer understanding of real estate transaction agreements, and penalties for unethical behaviour.
TREB supports the move towards a mandatory designated representation model where the brokerage would be required to designate different representatives from that brokerage to represent each client in the same transaction. However, the industry is working with the government to allow for flexibility in the rules to allow two clients in the same transaction, such as a buyer and seller or more than one buyer, to work with the same REALTOR® as an impartial facilitator, with consumer consent. This will provide for consumer choice.
“The detail still needs to be sorted out and the legislation still has to go through the legislative process, including public consultations. However, the government has committed to moving forward with a model similar to what the industry is advocating for,” said TREB CEO John DiMichele.
“The vast majority of TREB Members are ethical and comply with the Real Estate and Business Brokers Act. TREB looks forward to continuing to work with the province on all aspects of this and other important issues under REBBA such as raising educational standards and requirements,” said Syrianos.