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Glossary
Legal

TRESA (Trust in Real Estate Services Act)

Ontario's updated legislation governing real estate transactions, which replaced REBBA (Real Estate and Business Brokers Act) in 2023. TRESA introduced significant changes including allowing open offers in multiple-offer situations (if the seller consents), new disclosure requirements, and modernized rules around how agents represent buyers and sellers.

Why It Matters

TRESA changed the game for Ontario real estate. It gives buyers and sellers more transparency options, especially in bidding wars. Understanding the basics of TRESA helps you know your rights and what you can ask for during a transaction.

Real-World Example

You are buying in a multiple-offer situation in Toronto. Under TRESA, the seller can now consent to open bidding, allowing the listing agent to share that the highest offer so far is $920,000. You can adjust your bid accordingly rather than guessing in the dark. The seller must explicitly opt in to this transparency -- in a traditional closed bid, you would receive no information about competing offers.

Ontario & GTA Context

TRESA came into effect on December 1, 2023, replacing REBBA 2002. Key changes include the introduction of open bidding (at the seller's discretion), mandatory Buyer Representation Agreements before showings, new personal information handling requirements, and updated rules around designated representation within a brokerage. TRESA is administered by RECO and applies to all real estate transactions in Ontario.

How It Works in Practice

Ask your agent how TRESA affects your specific transaction. If you are buying in a bidding war, ask whether the seller has opted for open or closed bidding. If you are selling, discuss with your agent whether open bidding might attract higher offers or whether closed bidding better suits your strategy.

Common Questions

Does TRESA mean I can see other offers in a bidding war?
Only if the seller consents to open bidding. Under TRESA, the seller can choose to allow the details of competing offers to be shared with all buyers. If the seller opts for traditional closed bidding, the process works as before -- you know there are multiple offers but not what they contain.
Do I have to sign a Buyer Representation Agreement under TRESA?
Yes. Under TRESA, agents must present a BRA before providing services that go beyond basic information. In practice, most agents will ask you to sign before your first property showing. The BRA outlines the agent's duties, your obligations, and how commission is handled.

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