Ontario is officially gearing up to modernize rules governing the province's real estate services sector in an effort to educate homebuyers and sellers, as well as strengthen consumer confidence when dealing with brokerages, brokers, and salespersons.

The new rules, effective Dec. 1, 2023, will give consumers more choice in the real estate trade process by allowing a brokerage to disclose the details of competing offers. 

The changes also include an updated Code of Ethics to strengthen professional obligations related to integrity, conflict of interest, and the prevention of fraud. 

"Buying, leasing and selling real estate is one of the biggest and most important decisions a person or business will ever make so it's critical that rules for real estate brokerages, brokers, and salespersons reflect modern business practices that foster a strong and vibrant real estate market," said Todd McCarthy, Minister of Public and Business Service Delivery.

This morning, it was a pleasure to speak with Premier @fordnation at @OREAinfo conference on how our government is modernizing business practices to improve the quality & standards of Ontario’s real estate sector, with new changes taking effect December 1st.#onpoli #realestate pic.twitter.com/O2Xi3Y0L3R

— Todd McCarthy (@ToddJMcCarthy) November 28, 2023

"We want to ensure Ontarians feel empowered and informed when participating in real estate transactions, and for professionals in the sector to be seen as trusted and ethical." 

The legislative and regulatory changes introduced under the Trust in Real Estate Services Act (TRESA), 2020, will allow real estate brokerages to disclose the details of competing offers if the seller directs them to do so, excluding personal or identifying information.

The changes also provide the Real Estate Council of Ontario (RECO) with new powers and tools to better hold registrants accountable for non-compliance with the rules. 

"Phase 2 of TRESA represents the most significant change in consumer protection measures for Ontario's real estate sector since the 1990s," said Michael Beard, Chief Executive Officer of RECO. 

"Ontarians who buy or sell a home now have greater clarity on their rights, as well as the duties owed to them by real estate agents and brokerages."

News of the updated regulations follows a class action lawsuit filed at Toronto's Federal Court of Canada which alleged price-fixing realtor commission rates in the GTA real estate industry. 

How do you think this will end?🤔https://t.co/OZquLTNwW3 #Toronto #TorontoRealEstate

— blogTO (@blogTO) September 26, 2023

The lawsuit, which was filed in 2021 on behalf of Mark Sunderland, came after the Toronto resident paid a five per cent commission rate following the sale of his home in August 2020. 

Many of the nation's largest brokerages are named in the lawsuit, as well as the Toronto Regional Real Estate Board (TRREB), and the Canadian Real Estate Association (CREA). 

The class-action lawsuit covers anyone who sold a home listed on TREEB's Multiple Listing Service (MLS) after March 11, 2020, and claims that the defendants conspired to control commission rates, violating Section 45(1) of the Competition Act.