Unveiling Changes in Real Estate Agreements and Disclosures

As TRESA steps into the forefront, it brings with it transformative changes to the contents of written agreements and sets forth new requirements for disclosures. Let's delve into the intricacies, focusing on listing agreements, remuneration, and the imperative need for clear and comprehensive disclosures.

Seller's Decision on Remuneration

In the realm of listing agreements, TRESA puts the decision-making power on remuneration squarely in the hands of the seller. While OREA's Standard Form includes a space for cooperating brokers' commission, the amount payable to any other brokerage is now subject to a crucial conversation between the listing brokerage and the seller. TRESA mandates that written agreements explicitly outline the circumstances under which payable remuneration may change.

Eliminating Conflicts: A Shift in Practice

In a significant shift, TRESA disallows a common practice where listing brokerages might reduce their remuneration if the listing agent also represents a buyer in the transaction. Moving forward, this practice must be explicitly outlined in the written agreement, ensuring transparency and eliminating potential conflicts of interest.

Services, Expiry Dates, and Termination Terms: Detailed in Writing

The revamped landscape under TRESA requires meticulous detailing in written agreements. Any services promised to a client, from professional photography to staging and open house cadence, must be explicitly listed in the agreement. Moreover, terms related to the termination of the agreement must be contained within the agreement itself. TRESA mandates that the agreement, whether for one week or one year, must be outlined and initialed.

Disclosure Requirements under TRESA

TRESA introduces a robust set of disclosure requirements, covering crucial aspects such as multiple representation, material facts, latent defects, conflicts of interest, and the existence of a Seller Property Information Statement (SPIS). These disclosures must be written in clear and concise language, ensuring clients comprehend the intricacies of their real estate transactions.

Responsibilities of REALTORS®: Acknowledgment and Transparency

To comply with TRESA regulations, REALTORS® must obtain a written acknowledgment from their clients, indicating that the disclosures have been received. A copy of this acknowledgment must then be provided to the client. The responsibility lies with the agent to ensure that all disclosures are clearly marked. While OREA Standard forms are being modified, agents must maintain a paper trail of all documents. A valuable tip: make notes after each meeting to not just make the disclosures but to explain them thoroughly to clients.

As TRESA reshapes the real estate landscape, embracing these changes ensures not just legal compliance but a commitment to transparency and a client-centric approach. Clarity in agreements and disclosures paves the way for a more informed and collaborative real estate journey.