Organized real estate in Ontario is made up of: brokerages, brokers,
salespersons, the designated government authority, and federal,
provincial and local real estate associations and boards. Each will be
examined in turn.
Real estate brokerages are businesses (e.g.
sole proprietorship, partnership, corporation, etc.) that are licensed
to trade in real estate under the Real Estate Business and Brokers Act,
2002, S.O. 2002, c. 30, Sch. C.
Each real estate brokerage must
have a â€œbroker of recordâ€, who is registered as a broker under the Act
and employed by the brokerage to trade in real estate. Real estate
salespersons are individuals who are registered as salespersons under
the Act and who are employed by a brokerage to trade in real estate.
Real estate brokers and salespersons are also referred to as Realtors,
a trademark owned by the Canadian Real Estate Association (discussed
The Real Estate Council of Ontario (â€œRECOâ€) is the
designated government authority charged with administering the Act.
RECOâ€™s mandate is twofold: (1) administer the regulatory requirements
of the real estate industry (as determined by the Government of
Ontario) and (2) protect consumers and members through a fair, safe and
The Canadian Real Estate Association
(â€œCREAâ€) is a federal association representing more than 96,000 real
estate brokers and salespeople working through more than 100 real
estate boards nation-wide. CREAâ€™s responsibilities include national and
international representation of the Canadian real estate industry, and
the maintenance, protection and standards for certification marks and
trademarks (e.g. REALTOR and MLS, discussed below). CREA has its own
Code of Ethics, Privacy Code, and Standards of Business Practice, which
it requires Realtors to follow and which are implemented at the local
real estate board level.
The Ontario Real Estate Association
(â€œOREAâ€) is a provincial association representing Ontarioâ€™s 45,000
brokers and salesperson who are members of the provinceâ€™s 42 real
estate boards. OREA provides all real estate licensing and training
courses in Ontario. OREA serves its members through educational
programs, publications (e.g. standard forms), and special services
(e.g. resolving disputes between local real estate boards). Finally,
OREA acts as a liaison between its members and the Ontario government.
local real estate boards (e.g. the Toronto Real Estate Board) are
responsible for the maintaining the local Multiple Listing Service
(â€œMLSâ€) â€“ a comprehensive online gateway of real estate listings and
services accessible only to Realtors. Local real estate boards:
* determine membership prerequisites;
* process memberships;
* develop and implement regulations that support CREAâ€™s national policies;
* enforce CREAâ€™s Code of Ethics and the Standards of Business Practice;
* provide an arbitration service to resolve disputes between members;
* ensures local industry representation; and
* works in liaison with OREA and CREA.
Realtors must be a concurrent member of a local real estate board, OREA, and CREA.
note that the information provided herein is not legal advice and is
provided for informational and educational purposes only. If you need
legal advice with respect to organized real estate in Ontario, you
should seek professional assistance (e.g. make a post on Dynamic
Lawyers - http://www.DynamicLawyers.com). We have Toronto, Ottawa,
Hamilton, Mississauga, Brampton, and other Ontario business lawyers
registered on the website who can answer your questions or help you
with your partnership and limited partnership agreements. I should know
â€“ Iâ€™m one of them and you can contact me directly.
ABOUT THE AUTHOR:
Michael Carabash, B.A., LL.B., M.B.A.
Lawyers Ltd. was founded by Michael Carabash, a Toronto business lawyer
with Carabash Law. Virtually everyone has a wide range of legal issues
they need help with - such as writing a will, fighting a traffic
ticket, buying or selling real estate, writing a contract for services,
reviewing a lease agreement, having documents notarized or
commissioned, dealing with a motor vehicle accident, etc. Michael
wanted ordinary people in need of common legal services to be able to
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