How to handle Online Lead Inquiries (Watch This Before Claiming Leads from Dec 1st, 2023)

The Government of Ontario introduced the second phase of TRESA regulations and the new legislation will come into force on December 1, 2023

Here is what you need to know. (This is a brief explanation of what's changing, more details are available at the links below)

Realtors are required to provide the RECO prepared and mandated info guide. Also if any problems arise in a transaction we will be required to provide proof that we did our best efforts* to explain the contents of the guide to any potential consumer.

*Best Efforts*: There is no set guideline on what is considered best efforts. Document every interaction with a consumer, Always re-assert verbal discussions with a follow up email "As per our conversation today, i wanted to make it clear that you understand ..... "

Realtors are mandated to provide consumers with an information guide and explain the contents of the guide before providing any services.

Use this link https://www.recoinfoguide.ca to share the RECO info guide with your potential consumers

When prompt to enter the brokerage address, please use recoguide@housesigma.com 

PS: Please note that the realtor is still responsible to explain to any potential consumer the info guide, You can possibly do this on a phone call or on your first meeting and make sure you document your process.

Self Represented Party

Starting Dec 1st, 2023 we cannot use the term Customer anymore, A consumer is either "Your Client" or a "Self Represented Party" An SRP is simply a party who is not a client of any brokerage.

If a consumer elects to be an SRP we can only work with them under the following conditions:

• The service provided is to an SRP has to be a service to your own client (eg. showing your own listing to an SRP to assist your seller with the sale)

• The service you provide does not require you providing any advice that relies on your skills or judgment (eg. the Realtor may assist the SRP with the mechanics of filling out an Agreement of Purchase and Sale, but would not be able to provide any advice on pricing, deposit, clauses..etc)

The legislation is very clear that you CANNOT SHOW an SRP a listing that is not your client's or brokerage's listing. as this is not providing a service to your / our own client

You can ask questions like: Are you going to be representing yourself? Are you going to be preparing your own offer? Are you open to having a realtor help you out?

This conversation will also align with sharing the RECO info guide to help the consumer decide how they want to proceed.

Multiple Representation and Designated Representatives

The new legislations allow 2 realtors from the same brokerage, to represent 2 sides of a transaction without having this relationship count as a Multiple Representation.

The new BRA and Listing Agreement have fields for Designated Representative which if filled out with the Realtor's name, creates a Designated Representation Agreement that ties the client relationship to that specific agent under the services provided by the brokerage in this agreement.

eg. If 2 HouseSigma agents are designated to represent their side of the transaction then no disclosure of a Multiple Representation is required

Sharing Contents of Offers

TRESA allows Sellers to disclose contents of competing offers to bidding buyers. There are generally no ground rules and the Seller can change the process in the middle of offer presentation if they wish to do so.

Only the following is required in a situation where the seller is disclosing offer contents:

• No personal information to be shared.

• Any information shared must be shared with all bidding buyers

• The seller can choose any or all of (price, conditions, closing, deposit.. etc)

What about the buyer?

The buyer can only include a clause that states "in the event the seller discloses any of the contents of this offer, this offer shall become null and void.." 

Written Agreements & Disclosures

All written agreements must be clear and state in writing how commissions are being paid and how it's split between brokerages. It is the decision of the seller on how much remuneration is payable to any other brokerage.

Any disclosures need to be prominent, concise and written in clear language. The word DISCLOSURE must be displayed on the document your client is signing.

Do not imbed any information or disclosure in a multiple page document

Lastly, The new regulations empower RECO to conduct random audits on agents and allows for more sever penalties and disclosures of misconduct on their website to the public So please be extra careful and document your communications with your clients

For further reading on TRESA's phase 2 update please visit: 

RECO: https://www.reco.on.ca/real-estate-professionals/tresa-explained/
OREA: https://www.orea.com/advocacy/TRESA-Phase-2-Updates