TRESA Key Provisions Cheat Sheet
Your searchable, filterable reference to the Trust in Real Estate Services Act, 2002 (TRESA). Covering 16 key provisions with section numbers, summaries, and exam tips.9 items marked as exam-critical.
Showing 16 of 16 provisions
9 exam-criticalMultiple Representation
Exam CriticalA brokerage shall not represent more than one party in a trade unless all parties give informed, written consent. The brokerage must provide a written disclosure to all parties explaining the implications of multiple representation before consent is obtained.
Exam Tip
Key change from REBBA: "multiple representation" replaces "dual agency." Consent must be informed and in writing. The brokerage, not the individual salesperson, holds the representation relationship.
Self-Dealing Disclosure
Exam CriticalA registrant who acquires, disposes of, or makes an offer on property must disclose in writing that they are registered under TRESA. This applies to direct and indirect interests, including through family members, corporations, or other entities.
Exam Tip
This is a heavily tested topic. The disclosure must be made at the earliest practical opportunity and before any offer is made. Applies even if acting through a numbered company or spouse.
Designated Representation
Exam CriticalA brokerage may designate different salespersons or brokers to represent different parties in the same transaction. Each designated representative owes full fiduciary duties to their respective client, while the brokerage takes on an impartial role.
Exam Tip
This is entirely new under TRESA and did not exist under REBBA. Understand the difference between designated representation and multiple representation. The brokerage must have policies and procedures in place to prevent information sharing between designated representatives.
Trust Account Requirements
Exam CriticalBrokerages must maintain trust accounts at financial institutions insured by CDIC. Deposit trust funds within 5 business days of receipt. Trust funds must not be commingled with the brokerage operational funds. Interest on trust accounts must be handled per the agreement.
Exam Tip
Remember the 5-business-day rule for deposits. Trust money is the client's money, never the brokerage's. Penalties for mishandling trust funds are severe, including revocation of registration.
Advertising Rules
Exam CriticalAll advertising by registrants must include the brokerage name and not be false, misleading, or deceptive. The brokerage is responsible for all advertising by its salespersons and brokers. Advertising includes online, social media, print, and signage.
Exam Tip
Every ad must identify the brokerage. A salesperson cannot advertise independently without the brokerage name. "Coming soon" listings and pocket listings have specific rules. Social media posts about listings are considered advertising.
Personal Trade Disclosure
Exam CriticalWhen a registrant has a direct or indirect interest in a property being traded, they must disclose this interest in writing to all parties involved. This includes situations where the registrant or their immediate family members have an interest.
Exam Tip
Overlaps with self-dealing (S.18) but specifically covers trades where the registrant has an existing interest. Must be disclosed before any offer is submitted. The test looks for understanding of "direct or indirect" interest.
Obligations to Clients
Exam CriticalRegistrants owe clients fiduciary duties including loyalty, confidentiality, full disclosure, obedience to lawful instructions, and accounting. These duties survive the termination of the representation agreement.
Exam Tip
Understand the full list of fiduciary duties. Confidentiality continues even after the client relationship ends. A registrant cannot put personal interests ahead of client interests.
Obligations to Customers
Registrants owe customers (non-represented parties) duties of honesty, fairness, and providing service with reasonable care and skill. Must disclose material facts that could affect the transaction. Cannot mislead or make misrepresentations.
Exam Tip
Key distinction: clients get fiduciary duties, customers get fairness duties. Even without a representation agreement, you must treat customers honestly and disclose material facts about the property.
Representation Agreements
Exam CriticalAll representation relationships must be formalized in a written representation agreement before the brokerage provides services. The agreement must clearly outline the nature of services, remuneration, and term of the agreement.
Exam Tip
Under TRESA, written representation agreements are mandatory before providing services. This is a significant change from REBBA where verbal agreements were sometimes used. The agreement must be signed, not just discussed.
Record Keeping Requirements
Brokerages must maintain records of all trades and transactions for a minimum of 6 years. Records include offers, agreements, trust account ledgers, representation agreements, and correspondence. Electronic records are acceptable if properly maintained.
Exam Tip
The 6-year retention period is commonly tested. Know what records must be kept and for how long. Electronic records are valid but must be retrievable and organized.
Broker of Record Responsibilities
Every brokerage must have a designated broker of record who is responsible for ensuring compliance with TRESA and its regulations. The broker of record oversees all registrants, manages trust accounts, and handles complaints.
Exam Tip
The broker of record is personally responsible for brokerage compliance. They must be a registered broker (not just a salesperson). Know the difference between a broker and a broker of record.
Disclosure Before Offer
Before a buyer makes an offer, the registrant must disclose all material facts known about the property. Material facts include defects, environmental issues, zoning restrictions, and any factor that could affect the buyer's decision to purchase.
Exam Tip
Material facts must be disclosed even if the seller has not mentioned them, as long as the registrant knows about them. "Known or ought to have known" is the standard. Failure to disclose material facts is a serious offence.
Trust Fund Disbursement
Trust funds may only be disbursed in accordance with the terms of the trust agreement or upon written direction from the parties. In case of a dispute over trust funds, the brokerage must not disburse until the dispute is resolved or a court order is obtained.
Exam Tip
If there is a dispute over a deposit, the brokerage cannot simply release funds to either party. Interpleader applications may be needed. This is commonly tested in scenario-based questions.
Code of Ethics
Exam CriticalRegistrants must comply with the Code of Ethics which establishes standards of professional conduct. Key obligations include competence, integrity, acting in the best interests of clients, protecting confidential information, and avoiding conflicts of interest.
Exam Tip
The Code of Ethics is testable as a standalone topic. Common exam scenarios involve ethical dilemmas where you must identify the correct course of action. Always choose the option that puts the client's interests first while maintaining honesty.
Remuneration and Commission
Commission rates are not fixed and are negotiable between the client and brokerage. All remuneration arrangements must be in writing. Registrants cannot claim commission from more than one party without written disclosure and consent.
Exam Tip
Know that commissions are always negotiable in Canada. It is illegal to fix commission rates among brokerages (Competition Act). Under TRESA, remuneration must be clearly outlined in the representation agreement.
Complaints and Discipline Process
RECO investigates complaints against registrants and can impose discipline including fines up to $50,000, licence suspension, conditions on registration, and mandatory education. The discipline process includes investigation, hearing, and appeal stages.
Exam Tip
Know the discipline hierarchy: warnings, education orders, fines, conditions, suspension, revocation. Maximum fine is $50,000 for individuals, $100,000 for brokerages. Registrants have the right to a hearing before the discipline committee.
TRESA vs REBBA: Key Changes
Old: REBBA 2002
- •Dual agency (single agent both sides)
- •Verbal representation agreements allowed
- •Limited consumer information requirements
- •No designated representation option
- •"Customer" vs "Client" less defined
New: TRESA 2002 (as amended)
- ✓Multiple representation (brokerage-level)
- ✓Mandatory written representation agreements
- ✓Enhanced Information Guide requirement
- ✓Designated representation introduced
- ✓Clear "self-represented party" category
Frequently Asked Questions
Understanding the Trust in Real Estate Services Act (TRESA)
The Trust in Real Estate Services Act, 2002 (TRESA) is the cornerstone legislation governing real estate practice in Ontario, Canada. If you are preparing for your Ontario real estate licensing exam or are already a registered salesperson or broker, a thorough understanding of TRESA is not optional — it is essential. TRESA replaced the substantive provisions of the Real Estate and Business Brokers Act (REBBA) 2002, bringing significant modernization to consumer protection and professional standards in the province.
Why TRESA Matters for Exam Candidates
TRESA provisions make up a substantial portion of the Ontario real estate licensing exam content. The exam tests not just your knowledge of what the provisions say, but your ability to apply them in real-world scenarios. For example, you may be presented with a situation where a brokerage is asked to represent both the buyer and seller, and you must identify the correct disclosure and consent procedures under TRESA's multiple representation rules. Understanding the nuances — such as the difference between multiple representation and the new designated representation option — is what separates passing candidates from those who fall short.
The Shift from REBBA to TRESA
The transition from REBBA to TRESA represents one of the most significant regulatory changes in Ontario real estate history. The old concept of "dual agency" — where a single salesperson could represent both parties — has been replaced with "multiple representation" at the brokerage level. This shift acknowledges that the brokerage, not the individual salesperson, holds the representation relationship with clients. The introduction of designated representation gives consumers a new option: having different agents within the same brokerage represent each party with full fiduciary duties, provided proper information barriers are in place.
Key TRESA Provisions Every Registrant Must Know
Several TRESA provisions are considered critical knowledge for both exam candidates and practicing registrants. Self-dealing disclosure (Section 18) requires registrants to disclose their registration status whenever they have an interest in a trade. The trust account requirements (Section 27) establish strict rules for handling client money, including the five-business-day deposit rule and prohibition on commingling funds. Advertising rules (Section 36) require all advertising to include the brokerage name and prohibit misleading representations. These provisions protect consumers and maintain public trust in the real estate profession.
Representation Agreements Under TRESA
One of the most impactful changes under TRESA is the requirement for mandatory written representation agreements. Under the previous regime, verbal agreements were sometimes used, leading to confusion about the nature and scope of the relationship between registrants and consumers. TRESA mandates that all representation relationships be formalized in writing before services are provided. The agreement must clearly outline the services to be provided, the remuneration structure, and the duration of the relationship. This provides clarity and protection for both the consumer and the registrant, and reduces the potential for disputes about the nature of the professional relationship.
Using This Cheat Sheet Effectively
This cheat sheet is designed to be a quick-reference companion to your studies, not a replacement for reading the full legislation. Use the search function to find specific provisions when reviewing practice questions. Focus first on the exam-critical items marked with a star — these are the provisions most frequently tested on the RECO licensing exam. As you study each provision, pay special attention to the exam tips, which highlight common traps and frequently tested nuances. For the best results, combine this reference with practice questions from our question bank to test your understanding in context.
Practice TRESA Questions
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