In Ontario, there is a set of rules and acts that are mandatory for all the real estate market participants, including sellers and brokerage companies.

The Real Estate Council of Ontario (RECO) is the supervisory body. RECO, on behalf of the provincial government, ensures full compliance with all the rules and regulations. These laws are collected in the Real Estate and Business Brokers Act (REBBA), 2002, S.O. 2002.

Rebbareform.ca is the complete guide to the REBBA. Here you can find basic information about the Law and its latest changes. Below is also a list of normative and legislative acts that regulate the activities of real estate specialists and all market participants.

What Is REBBA?

This legislation Act governs the activities of registered companies and individual brokers engaged in the selling of real estate in Ontario – a province of Canada. The provincial government passed the first Real Estate and Business Brokers Act in 1930. RECO fully regulates the REBBA on behalf of the Ontario Department of Consumer Services.

The 2002 edition of the REBBA is an updated version of the 1990 Act. The main changes made in the updated version of the regulation include:

• an established and clear framework for the registration process, as well as the regulation of the activities of brokers and sellers and brokerage operations;
• trading rules were moved to the Provisions section of the new edition from the previous version of the Law;
• programs and procedures were supplemented that relate to insurance, the code of ethics, as well as the complaints process;
• the maximum size of fines for violating any paragraphs of the Law was also increased.

The evolution of REBBA is just one example of how Ontario is addressing the need for robust regulatory frameworks across various industries. As the province looks to foster a safer and more transparent marketplace, similar legislative reforms are being applied in other sectors as well. These adjustments aim to modernize practices, enhance consumer protections, and ensure that the industries keep pace with technological advancements and evolving market dynamics. Such a comprehensive approach not only solidifies the integrity of real estate but also echoes across other fields where the relationship between regulatory measures and industry standards is equally crucial for consumer confidence and industry health.

The Area of REBBA Application

Through a series of regulations, the Government of Ontario is successfully taking steps to strengthen legislation system and improve the quality of service to consumers, including homeowners, real estate professionals and tenants.

The REBBA implies to:

The Importance of the Act

Given the changes in the real estate sector of Ontario, there is a need for tighter and thorough regulation of the market, as well as a revision of some points of the Act.

Since 2002, the maximum penalty for violating REBBA clauses has not changed and currently stands at $25,000 (for individual sellers) and $50,000 (for brokerage companies). The fines were set back when the average price of a second home in the province was $211,000. Now, this figure has more than doubled.

Consequently, the effectiveness of fines as a way to eliminate or significantly reduce cases of unethical behaviour in accordance with all the principles of REBBA has decreased. Therefore, low fines are seen as an incentive for the wrong behaviour of real estate market participants.

There are a number of other issues that consumers face today because of incomplete legislation, including RECO’s inability to revoke the license of unscrupulous brokers, the lack of transparency in RECO’s activities and failures in communication with consumers and resolution of all complaints.

That is why the government of Ontario is working today to modernize the Act, making incremental changes and amendments to shape the updated Law, strengthening the industry and establishing high standards in the real estate industry for years to come.

Latest Amendments of the Real Estate and Business Brokers Act of Ontario

Updates for the period from 2021 to 2022 include:

• Document version dated December 8, 2020 – October 18, 2021
• Document version dated October 19, 2021 – February 28, 2022
• Document version dated March 1, 2022 – April 3, 2022
• Document version dated April 4, 2022 – current.

Full details of all changes and amendments can be found here.

Scheduled Amendments

The following significant amendments to the Act, enacted by the government of Ontario, will come into effect on April 1, 2023.

Planned edits include the following issues:

The upgrades are expected to strengthen consumer protections as well as increase Canadians’ confidence in the province’s real estate sector.

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