TRESA Explained: What Ontario’s New Real Estate Rules Mean for Buyers and Sellers in 2025

 

Ontario’s real estate landscape underwent one of its most significant regulatory overhauls in decades when the Trust in Real Estate Services Act (TRESA) replaced the Real Estate and Business Brokers Act (REBBA) in two phased stages. As of 2025, the final phase of TRESA is fully in effect — and if you’re buying or selling property in Ontario, understanding these new rules is no longer optional. This guide breaks down exactly what TRESA means for you, how it changes the relationship between clients and real estate professionals, and why working with an experienced, compliant broker has never mattered more.

Fardad Farhanian is a licensed real estate broker with RE/MAX REALTRON REALTY INC., Brokerage, serving clients across Ontario and Canada with 25+ years of experience and $750M+ in successful transactions. This guide reflects his commitment to keeping clients educated, protected, and empowered throughout every transaction.

What Is TRESA? A Plain-Language Overview

The Trust in Real Estate Services Act (TRESA) is Ontario’s updated legal framework governing how real estate professionals operate, how they must represent clients, and what obligations they have when disclosing information. TRESA replaced the older REBBA legislation, which had governed Ontario real estate since 2002 — a time when the market, technology, and consumer expectations were dramatically different.

TRESA was introduced in two phases. Phase 1 took effect in April 2023, establishing foundational changes. Phase 2 came into full force in December 2023 and introduced the most consumer-facing reforms, including mandatory written representation agreements, a clearer definition of client versus customer status, and new rules around open offer processes. As of 2025, all registrants — brokers, agents, and brokerages — are fully bound by TRESA’s complete regulatory requirements.

The core philosophy behind TRESA is straightforward: raise standards of professionalism, improve transparency, and give Ontario buyers and sellers stronger protections than they had under the old system.

Key TRESA Changes That Affect Ontario Home Buyers

For anyone purchasing property in Ontario, TRESA introduces several important changes that directly affect how you’re represented and what information you’re entitled to receive.

Designated Representation Is Now the Default

Under TRESA, Ontario brokerages can now offer designated representation, a major structural change. Previously, when a brokerage represented both the buyer and seller in the same transaction, it created a multiple representation (dual agency) situation that limited what each party’s agent could do for them. Under designated representation, two different registrants within the same brokerage can now act exclusively for their respective clients — the buyer and the seller — without triggering automatic dual agency conflicts.

This means buyers working with a broker at a larger brokerage can now receive full, undivided representation even if another agent at the same firm represents the seller. This is a meaningful consumer protection that didn’t exist under REBBA.

Written Representation Agreements Are Now Mandatory

Under TRESA, real estate professionals must have a signed written agreement before providing services to a client. This formalizes the relationship and makes clear what services you’re receiving, at what cost, and under what terms. For buyers, this means signing a Buyer Representation Agreement before your broker begins showing you properties. This protects you by clearly outlining your broker’s obligations to you.

If you’re searching for residential properties in Ontario, having this formal agreement in place ensures your interests are fully protected from the very first showing.

New “Self-Represented Party” Protections

TRESA formally recognizes a category called a “self-represented party” — someone who chooses to buy or sell without representation. Under the new rules, a real estate professional working with a self-represented party must be clear that they cannot provide advice that serves that party’s interests, since they represent the other side. This transparency is designed to prevent buyers or sellers from mistakenly believing they have representation when they don’t.

What TRESA Means for Ontario Home Sellers

Sellers in Ontario also experience significant changes under TRESA, particularly around disclosure obligations and how offers are handled.

Seller Disclosure Obligations Under TRESA

TRESA reinforces and expands the duty of real estate professionals to disclose material facts — information that could reasonably affect a buyer’s decision to purchase or the price they’d pay. As a seller, your listing broker is now held to a higher standard of ensuring all known material facts are properly disclosed and documented. This includes latent defects, zoning issues, or any known conditions that materially affect the property.

Sellers should work closely with their broker to prepare comprehensive, accurate disclosure documents before listing. This not only protects buyers — it protects sellers from post-closing disputes. Fardad Farhanian’s team assists clients in navigating these requirements thoroughly. For a full overview of services, visit the About Fardad Farhanian page.

Open Offer Process: Greater Transparency on Multiple Offers

One of the most talked-about TRESA reforms is the introduction of an open offer process. Under the new rules, sellers now have the option to allow the disclosure of competing offer details to all parties in a multiple-offer scenario. This is a departure from the traditionally opaque bidding process Ontario was known for, and it gives buyers more information when deciding how to compete.

It’s important to understand that this is a seller’s choice — it is not mandatory. Sellers can still opt for a closed offer process. However, if a seller chooses the open process, their listing broker must disclose offer details to all competing buyers. This change is designed to reduce blind bidding anxiety and give the market more transparency. As of 2026, industry adoption of the open offer process continues to grow, particularly in competitive GTA segments.

How TRESA Changes the Broker-Client Relationship

Perhaps the most structurally significant shift under TRESA is the formalized distinction between a client and a customer. Under REBBA, these terms were often used loosely. TRESA clearly defines them.

A client has a formal written representation agreement with a registrant, entitling them to fiduciary-level duties: loyalty, confidentiality, full disclosure, obedience to lawful instructions, and competent service. A customer (or self-represented party) does not have this agreement and therefore does not receive these duties — they receive only honest, ethical treatment and basic factual information.

This distinction matters enormously. If you’re buying or selling a home without a signed representation agreement, you are legally a customer — not a client — and your broker owes you far fewer obligations. Always formalize your relationship with your real estate professional in writing before proceeding.

To explore current listings with the confidence of full representation, visit search all listings or browse properties across Canada available through RealtyMan.

TRESA and Commercial Real Estate in Ontario

TRESA’s provisions apply across all real estate sectors, including commercial and industrial transactions. Commercial buyers, sellers, and investors in Ontario now benefit from the same enhanced disclosure obligations and written representation requirements that govern residential transactions. This is particularly relevant for investors pursuing commercial, industrial, or land development opportunities across the GTA and broader Ontario market.

If you’re involved in commercial transactions, you can explore available commercial and industrial properties listed through RealtyMan, all handled under TRESA-compliant protocols.

What TRESA Does NOT Change

It’s equally important to understand what TRESA does not alter. The fundamental mechanics of buying and selling real estate in Ontario — pricing, negotiation strategy, due diligence, home inspection, financing conditions — remain largely unchanged. TRESA governs the conduct of real estate professionals, not the structure of property transactions themselves.

TRESA also does not replace the need for independent legal counsel. Every real estate transaction in Ontario requires a licensed real estate lawyer, and TRESA does not diminish that requirement. Always consult a qualified real estate lawyer before closing any transaction. Similarly, for mortgage structuring and financing decisions, consult a licensed mortgage broker or financial advisor.

Frequently Asked Questions About TRESA Ontario 2025

When did TRESA fully come into effect in Ontario?

TRESA Phase 1 took effect in April 2023, and Phase 2 — which introduced the most significant consumer-facing changes including designated representation, mandatory written agreements, and the open offer process — came into full force in December 2023. As of 2025, all registrants are operating under the complete TRESA framework.

Do I still need a written Buyer Representation Agreement under TRESA?

Yes. Under TRESA, written representation agreements are mandatory before a registrant can act as your representative. Without a signed Buyer Representation Agreement, you are legally considered a self-represented party or customer, not a client, and you do not receive fiduciary protections. Always insist on a written agreement before your broker begins representing you.

How does TRESA’s open offer process work for sellers in Ontario?

Under TRESA, sellers now have the option — but not the obligation — to choose an open offer process during a multiple-offer situation. If selected, competing buyers are informed of the details of other offers, reducing blind bidding. If the seller opts for the traditional closed process, offer details remain confidential. Your listing broker must clearly communicate which process is in effect.

Does TRESA apply to rental and commercial real estate transactions?

Yes. TRESA applies to all real estate registrants in Ontario, covering residential sales, commercial transactions, industrial properties, leasing, and land dealings. The same principles of written representation, disclosure obligations, and the client-vs-customer distinction apply across all property types.

How do I know if my real estate broker is TRESA-compliant?

A TRESA-compliant broker will provide you with a written representation agreement before offering advice or showing properties, clearly explain whether you are being treated as a client or customer, disclose any potential conflicts of interest, and ensure all material facts about a property are properly disclosed. You can verify a registrant’s status through the Real Estate Council of Ontario (RECO) public registry. Fardad Farhanian operates in full compliance with TRESA at RE/MAX REALTRON REALTY INC., Brokerage.

Work With a TRESA-Compliant Broker in Ontario

Understanding TRESA is one thing — working with a broker who applies it correctly every day is another. Fardad Farhanian brings 25+ years of Ontario real estate expertise, $750M+ in completed transactions, and a long-standing commitment to transparent, client-first service. Whether you’re buying your first home, selling a luxury property, or exploring investment opportunities across the GTA and beyond, Fardad’s approach is fully aligned with TRESA’s consumer-protection mandate.

To discuss your real estate goals under Ontario’s updated regulatory framework, contact Fardad Farhanian directly or call +1 416-707-1031. You can also visit the office at 7646 Yonge Street, Thornhill, ON L4J 1V9 by appointment. For additional market insights, guides, and property news, explore the RealtyMan blog.