What is TRESA?
The Trust in Real Estate Services Act (TRESA) is Ontario's legislative framework governing real estate professionals. Enacted in 2020 to replace the Real Estate and Business Brokers Act (REBBA), TRESA establishes the rules and standards all Ontario real estate agents must follow.
TRESA compliance isn't optional—it's a legal requirement enforced by the Real Estate Council of Ontario (RECO). Violations can result in fines, license suspension, and legal liability.
Core TRESA Requirements for 2026
Disclosure Obligations
TRESA requires real estate professionals to disclose material facts to clients and customers. A material fact is any information that could reasonably be expected to affect a party's decision to enter into a transaction or the price they're willing to pay.
What must be disclosed:
When disclosure is required: At the earliest reasonable opportunity. Waiting too long to disclose material facts can constitute a TRESA violation even if you eventually disclose.
Written Agreements
TRESA requires written agreements for all representation relationships. Verbal agreements are not sufficient for compliance.
Required written agreements:
These agreements must clearly outline:
Trust Account Compliance
If you handle client funds (deposits, rents, etc.), TRESA has strict trust account requirements:
Separation of Funds: Client funds must be kept separate from personal or business funds. Never comingle trust funds with operating accounts.
Record Keeping: Maintain detailed records of all trust account transactions including:
Reconciliation: Trust accounts must be reconciled monthly, comparing bank balances against trust ledgers to ensure accuracy.
Interest: For funds held over 60 days, TRESA has specific requirements about interest payments to clients.
Common TRESA Compliance Errors
Delayed Disclosure
Error: Learning about a property issue but waiting to disclose until after offer acceptance.
Why it's problematic: TRESA requires disclosure "at the earliest reasonable opportunity." Timing matters.
How to avoid: Disclose material facts as soon as you become aware of them, even if it's inconvenient for the transaction.
Inadequate Representation Agreements
Error: Using outdated agreement forms, missing required fields, or verbal-only agreements.
Why it's problematic: TRESA requires written agreements with specific content. Inadequate agreements don't meet legal requirements.
How to avoid: Always use current OREA forms, complete all required fields, and ensure proper signatures before providing services.
Poor Trust Account Management
Error: Delayed deposits, inadequate record-keeping, or commingling funds.
Why it's problematic: Trust account violations are among the most serious TRESA compliance issues. RECO audits trust accounts regularly.
How to avoid: Deposit client funds immediately (required within specific timelines), maintain meticulous records, and reconcile accounts monthly.
Insufficient Documentation
Error: Not documenting client instructions, disclosure conversations, or important transaction details.
Why it's problematic: If a dispute arises, you need evidence of compliance. Poor documentation makes defending your actions difficult.
How to avoid: Document everything in writing. Client emails, file notes, disclosure forms—create a paper trail for every important interaction.
TRESA and Technology
Technology can significantly improve TRESA compliance:
Automated Disclosure Tracking
AI systems can prompt agents about disclosure requirements based on property characteristics and transaction circumstances. Rather than relying on memory, technology can ensure timely, complete disclosure.
Form Compliance Verification
Modern platforms can verify that all required fields in representation agreements are completed, reducing the risk of inadequate documentation.
Trust Account Automation
Proper software can track trust account transactions, maintain required records, and facilitate monthly reconciliation—reducing errors and improving compliance.
Audit Trail Creation
Digital systems automatically create audit trails showing when disclosures were made, when agreements were signed, and how client instructions were followed.
RECO Enforcement and Penalties
The Real Estate Council of Ontario (RECO) enforces TRESA through:
Regular Inspections: RECO inspects brokerages to ensure compliance with trust accounting, record-keeping, and operational requirements.
Complaint Investigations: When complaints are filed, RECO investigates potential TRESA violations.
Discipline Process: Proven violations can result in:
Staying Current with TRESA Changes
TRESA regulations and RECO policies evolve. Staying compliant means staying informed:
Monitor RECO Updates
RECO regularly issues bulletins, updates, and guidance documents. Subscribe to RECO communications and review updates as they're published.
Continuing Education
Ontario requires continuing education for license renewal. Use this opportunity to stay current on TRESA requirements and compliance best practices.
Professional Resources
Organizations like the Ontario Real Estate Association (OREA) provide resources, training, and guidance on TRESA compliance.
Consult When Uncertain
If you're unsure about a compliance requirement, seek guidance. Better to ask than to violate TRESA and face penalties.
How RAIE Helps with TRESA Compliance
AI assistants like RAIE support TRESA compliance by:
Automated Form Completion: Ensures all required fields are completed properly, reducing documentation errors.
Compliance Prompts: Reminds agents about disclosure requirements, agreement necessities, and regulatory timelines.
Current Regulation Knowledge: AI trained on current TRESA, OREA, and RECO standards provides accurate compliance guidance.
Audit Trail Creation: Automatically documents when forms were generated, what information was used, and how processes were followed.
TRESA Compliance Checklist
Use this checklist for every transaction:
The Bottom Line on TRESA Compliance
TRESA compliance is non-negotiable for Ontario real estate professionals. The regulations exist to protect consumers and maintain industry standards. While compliance requires attention to detail and proper processes, it doesn't have to be overwhelming.
Understanding requirements, using proper forms, maintaining good records, and leveraging technology where appropriate makes TRESA compliance manageable. The agents who struggle are typically those who try to cut corners or ignore requirements.
Take compliance seriously, stay informed about regulatory changes, and use tools that support rather than complicate your compliance obligations. Your license and your reputation depend on it.