How many times have you heard that real estate is a regulated profession? Well, here we say it again, real estate is regulated under the Real Estate and Business Brokers Act, 2002 (REBBA 2002), which means that certain activities as defined in the legislation cannot be delegated to unregistered assistants (i.e., individuals not registered with the Real Estate Council of Ontario (RECO)).
REBBA 2002 defines real estate as leasehold interests and businesses, whether with or without premises, and fixtures, stock-in-trade and goods connected with the operation of a business.
Trade is defined as a disposition or acquisition of or transaction in real estate by sale, purchase, agreement for purchase and sale, exchange, option, lease, rental or otherwise and any offer or attempt to list real estate for the purpose of such a disposition, acquisition or transaction, and any act, advertisement, conduct or negotiation, directly or indirectly, in furtherance of any disposition, acquisition, transaction, offer or attempt, and the verb “trade” has a corresponding meaning.
In keeping with regulatory requirements, unregistered assistants cannot participate in the following activities:
- open houses, property showings, or home inspections
- cold calls
- listing or sales presentation, unless accompanied by a registrant
- offer or counter offer presentations
- negotiation of purchase contracts, listing contracts, rental agreements, or leases
- negotiation or agreement involving commission, commission split, management fees, or referral fees on behalf of registrants
Unregistered assistants are permitted to do the following: (this is not an exhaustive list)
- submit listings and changes to the Multiple Listing Service®
- schedule appointments for registrants to show listed properties
- type contract forms
- place ‘For Sale’ signs on property on behalf of registrants
- distribute listing information to the public
- prepare and produce promotional material
- install lockboxes
- set up listing files, take photos of listings, complete fact sheets and deliver them to properties
- deliver documents and pick up keys
What have we missed from the list above? Share your answers here.