The Trust in Real Estate Services Act, 2002 (TRESA) governs every aspect of how brokerages and registrants operate in Ontario — including disclosure obligations, representation agreements, designated representation, client records, and trust account management. We advise brokerages on their obligations under TRESA and the accompanying regulations, assist in implementing compliant policies and procedures, and provide guidance when regulatory changes require updates to existing practices. The transition to TRESA’s Phase 2 provisions introduced significant changes to how brokerages must structure their services — we ensure your operations remain current and compliant.

The relationship between a brokerage and its registered salespersons and brokers must be properly documented. We draft and review independent contractor agreements, team agreements, and referral arrangements — ensuring the terms are legally sound, clearly define the parties’ obligations, and comply with TRESA requirements. Poorly drafted agent agreements are one of the most common sources of brokerage disputes. We address commission structures, termination provisions, non-solicitation clauses, and ownership of client relationships before they become issues.

Commission disputes are among the most frequently litigated issues in Ontario real estate. We represent brokerages in disputes involving unpaid commissions, entitlement disagreements between co-operating brokerages, disputes over holdover clauses, and commission claims arising from transactions that did not close as planned. We also advise brokerages on the legal requirements for commission payment to registered versus unregistered individuals — paying commission to an unlicensed person is a violation of TRESA with serious consequences for the brokerage.

When RECO initiates a complaint or compliance inspection against a brokerage or its broker of record, the consequences can be severe — including fines, conditions on registration, or revocation. We represent brokerages and brokers of record in RECO Discipline Committee proceedings, compliance investigations, and appeals. We also prepare written responses to RECO complaints at the investigation stage — a well-structured early response can significantly affect how a matter proceeds. For matters that escalate to the License Appeal Tribunal, we provide full representation.

Brokerages are frequently named in civil claims by buyers and sellers alleging misrepresentation, failure to disclose material facts, negligent advice, breach of fiduciary duty, or failure to communicate offers. We defend brokerages and their registrants in these proceedings — assessing the merits of the claim, advising on early resolution where appropriate, and representing the brokerage through litigation where necessary. We also advise on errors and omissions insurance coverage and its interaction with civil claims.

Brokerages operating under a franchise agreement are bound by terms that can significantly affect their operations — including territory restrictions, fee structures, branding obligations, and exit provisions. We review franchise agreements before execution to identify onerous terms, advise on renewal and renegotiation, and assist brokerages navigating disputes with their franchisor. If you are considering exiting a franchise arrangement, we advise on the legal obligations and risks associated with termination before you take any steps.

Ontario brokerages are required to maintain trust accounts in strict compliance with TRESA and RECO’s requirements — including deposit handling, record keeping, and reconciliation. Trust account irregularities are among the most serious compliance findings a brokerage can face. We advise on trust account obligations, assist in responding to RECO inspection findings related to trust accounts, and represent brokerages where trust account issues have given rise to regulatory proceedings.