As OREA continues to support Ontario REALTORS® through the COVID-19 pandemic, our policy and advocacy work is stronger than ever. Since the beginning of 2020, OREA has been working with the provincial government to bring forward regulations supporting the Trust in Real Estate Services Act, 2019 (TRESA).
OREA has asked the government to make Personal Real Estate Corporations (PRECs) a priority, so we were pleased to submit our response to the Ministry of Government and Consumer Services’ consultation on important regulatory changes that will impact REALTORS® across Ontario. In our response, OREA focused on two main regulatory updates including allowing registrants to form PRECs and updating advertising regulations to allow REALTORS® to use new terms to market their business in their public-facing advertisements.
Coming out of the COVID-19 pandemic, the implementation of TRESA will allow real estate to play a significant role in the economic recovery of our Province. PRECs are a modern business tool that will be used by REALTORS® across Ontario to generate significant economic activity and allow our members to grow their businesses and create new jobs. OREA has worked closely with industry professionals to identify a PREC model that is beneficial to REALTORS® and protects consumers.
When preparing our consultation, OREA focused on three basic principles when considering the government’s regulatory recommendations:
- Will this recommendation lead to a PREC model that delivers the maximum financial advantage for registrants?
- Will this recommendation lead to a PREC model that is the least administratively burdensome to registrants?
- Does this recommendation maintain all existing ethical obligations for registrants?
Many REALTORS® across Ontario operate their businesses with the help and contribution of their family members. In order for registrants to obtain the full financial benefits of a PREC, OREA has asked the province to consider a PREC model that permits income splitting. By affording REALTORS® the same business tools allowed in other professional designations, REALTORS® will be able to remain autonomous and flexible when it comes to making decisions for their business.
Moving forward the government will review OREA’s feedback and begin drafting new regulations supporting TRESA. By working closely with the provincial government through the regulatory drafting period, OREA is confident that TRESA will result in a PREC model that will be seen as industry-leading in North America.
We are happy that our advocacy has ensured that the implementation of TRESA remains a government priority and we will be updating our members with more information regarding the consultation process as it becomes available.