Understanding Your Rights in Real Estate Transactions under TRESA

In the ever-evolving landscape of real estate, knowledge is power.

For both buyers and sellers, understanding their rights is not just important; it's absolutely essential. The recent changes under the Trust in Real Estate Services Act, (TRESA), formerly known as the Real Estate and Business Brokers Act, 2002 (REBBA), highlight the significance of being fully aware of your rights when engaging in real estate transactions. In this blog, we'll explore the changes and why this awareness is crucial and how it empowers ALL parties involved.

Phase 2 of TRESA will come into effect December 1, 2023. The Real Estate and Business Brokers Act, 2002 (REBBA) will be renamed the Trust in Real Estate Services Act, (TRESA).

The most important change is:

• Clients and self-represented parties will continue, but customer relationships will be eliminated. This means that a party to a trade will be either a client or a self-represented party. The customer service portion will be completely removed. This means the Brokerage and Sales person's obligation is only to their clients.
• Sharing contents of offers will be permitted with the seller’s written direction

For those who are not certain whether they want to be clients and considering being a self-represented party, it will be important for them to understand the risks associated with being a self-represented party in a real estate transaction and the extremely limited assistance that might be provided to a self-represented party by a registrant representing a client in a trade. 

A self-represented party, in respect of a trade, is a party that is not a client of a brokerage.

● They will not be able to receive services, opinions, or advice from brokerage or real estate agent involved in the trade.

● They cannot rely on the knowledge, skill or judgement of brokerage or real estate agent involved in the transaction, as their obligation is only to their clients.

In short, a realtor  or brokerage can’t provide assistance to a self-represented buyer unless the seller is their client.

Or they can’t provide assistance to a self-represented seller unless the buyer is their client. And any assistance provide is a service to their client. 

Therefore, you will either be a client and have a Realtor and brokerage representing you during any transaction or you will be a self-represent party. As such it is important to have as much knowledge about Real estate transactions as possible. After all, knowledge is POWER.

In the ever-changing realm of real estate, understanding your rights has never been more crucial. With the introduction of TRESA, buyers and sellers are not just participants; they are empowered stakeholders in a transaction that can shape their futures. It's vital to recognize that under TRESA, a party to a trade will be either a client or a self-represented party, emphasizing the need for knowledge and awareness.

So, whether you're embarking on the journey of buying your dream home or selling a property you've cherished, arm yourself with a Realtor to help you navigate the journey or arm yourself with as much knowledge as possible if you chose to navigate the journey by yourself.

After all, knowledge is POWER. It transforms a daunting transaction into an empowering experience. With the right Realtor or right information, you can navigate the complexities of real estate with confidence. So, go ahead, be a knowledgeable buyer or seller—your future self will thank you for it.

Happy real estate journey!

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