TRESA Update: How Ontario's New Real Estate Representation Rules Affect Your Purchase or Sale

Real estate law in Ontario changed more in the past two years than it did in the previous two decades. The Trust in Real Estate Services Act — known as TRESA — brought in a new model of agent representation, mandatory disclosure requirements, and updated consumer protections that apply to every purchase and sale in the province. If you are buying or selling a home and you have not heard of TRESA, this article is for you.

A Quick History: What Was Wrong With the Old System

Before TRESA, Ontario real estate operated under the Real Estate and Business Brokers Act (REBBA). Under that framework, representation was organized at the brokerage level. If two clients of the same brokerage ended up on opposite sides of a transaction — say, one agent had a buyer and another agent in the same office had the matching seller — the brokerage technically ‘represented’ both. This was called multiple representation, and it created an uncomfortable legal grey zone where neither party could be certain their agent’s loyalty was undivided.

TRESA replaced this with a cleaner framework. The result is a system that is better for consumers — but only if they understand how it works.

The Core Innovation: Designated Representation

The centrepiece of TRESA is designated representation. Under this model, a brokerage can formally designate one agent to represent the buyer and a different agent to represent the seller — even if both agents work for the same brokerage. Each designated representative owes their client a full duty of loyalty, confidentiality, and advocacy.

This is a meaningful improvement over the old multiple representation model, where both parties effectively received watered-down representation from the moment a conflict was identified. Under designated representation, your agent is fully and exclusively on your side, regardless of who else their brokerage is working with.

When Designated Representation Does Not Apply

Designated representation is the default, but not universal. There are situations where it breaks down or does not apply:

• If the same agent (not just the same brokerage) represents both buyer and seller, that agent cannot truly be a designated representative for both. In that case, the agent may act as a facilitator — providing services to both parties without representing either.
• If a brokerage does not adopt the designated representation model, it may still operate under the older multiple representation rules.
• Self-represented parties — buyers or sellers who choose to proceed without an agent — are not covered by designated representation at all.

For buyers especially, understanding which of these situations applies to your transaction is important before you share any confidential information with your agent.

The New Mandatory Written Representation Agreement

One of TRESA’s most practically significant changes is the requirement that agents enter into a written representation agreement before they can do substantive work on a buyer’s behalf — including showing listed properties or submitting offers. This was already recommended practice, but TRESA made it mandatory.

The Buyer Representation Agreement sets out the nature of the relationship, the agent’s duties, and the compensation arrangements. Buyers should read this document carefully before signing. Pay particular attention to:

• The duration of the agreement — some agreements have long terms that may lock you into working with a particular agent or brokerage
• The geographic scope — some agreements may cover a broader area than you intend
• The commission structure — particularly if a property is listed by the same brokerage, as the commission split may affect the dynamic

Your real estate lawyer can review your representation agreement and flag any terms that may not serve your interests.

TRESA and the Offer Process

TRESA also changed the rules around competing offers. Sellers now have more flexibility to disclose the number of competing offers — and in some circumstances, the content of offers — than was permitted under the old regime. Whether a seller chooses to share this information is at their discretion.

For buyers, this means the optics of the offer process are somewhat cleaner — you may have a better sense of how many offers you are competing against. But it does not change the fundamental legal principles of the transaction. Your offer, once accepted, becomes a binding Agreement of Purchase and Sale regardless of how many other offers were submitted.

What TRESA Means If You Are Selling

Sellers under TRESA can expect more formalized disclosure obligations from their listing agents. Your agent must disclose to you any conflicts of interest — including if they, or someone connected to them, has a financial interest in the buyer’s ability to purchase. They must also tell you whether the brokerage will be representing the buyer, and what that means for your confidentiality.

The bottom line for sellers: the process is more transparent, and your agent’s obligations are more clearly defined. If something feels off — if disclosures were not made, if your agent seems to be working in the buyer’s interest — speak with a lawyer before you proceed.

Where Your Real Estate Lawyer Fits In

TRESA changed how agents represent clients. It did not change the role of the real estate lawyer. Your lawyer is not governed by TRESA — they are governed by the Law Society of Ontario. Their duty of loyalty to you is absolute and cannot be diluted by brokerage relationships, commission arrangements, or dual agency concerns.

Every real estate transaction in Ontario requires a lawyer on each side. Whether your agent is a designated representative or a facilitator, whether you are buying with full representation or self-represented, your lawyer reviews the legal documents, conducts the title search, and ensures your interests are protected at the moment of closing.

The Practical Takeaway

TRESA is a net improvement for Ontario real estate consumers. The designated representation model is cleaner and more honest than what came before. But knowing that the system has improved does not mean buyers and sellers should stop asking questions. Know who your agent represents. Know what has been disclosed to you in writing. And make sure your real estate lawyer has everything they need to protect your interests at closing.

Ready to Get Legal Advice You Can Trust?

Goldstone Law Professional Corporation serves clients across Mississauga, Brampton, Oakville, and the greater GTA in real estate, corporate, estate, and mortgage law. Whether you are buying your first home, structuring a business deal, or planning your estate, our team provides the clear, practical legal guidance you need.

Visit goldstonelawpc.com or call us at 905-595-9917. We are located at 201-186 Robert Speck Parkway, Mississauga, ON L4Z 3G1.

Disclaimer: This article is intended for general informational purposes only and does not constitute legal advice. For advice specific to your situation, please consult a qualified Ontario lawyer.