Realtors tend to like statistics, so let’s look at some more important numbers.

Consumers viewed MLS listings in the ITSO client portal more than 4 million times in the last month alone. From Jan. 1 to Sept. 30, there were nearly 120,000 new listings on the ITSO MLS System and close to 60,000 sales. These listings and sales come from the more than 23,000 users of the ITSO MLS System — 18,500 of which are realtors.

Now, let’s look at the statistics found in the Toronto Regional Real Estate Board’s (TRREB) Market Watch report. In the same time period, there were more than 112,000 new listings on the TRREB MLS System and close to 54,000 sales. According to CREA’s 2023 Q2 Membership statistics, there were 76,000 realtors that belong to TRREB and TRREB’s partner boards, all contributing to these listings and sales. 

As you can see, access to both ITSO’s MLS data and TRREB’s MLS data is essential for realtors trading in areas covered by these two systems — and these aren’t the only ones in Ontario. 

Fragmented MLS systems in Ontario

Ontario realtors need access to all the data in the province so that they can do their jobs and appear professional in the eyes of consumers. Consumers have access to Realtor.ca and VOWs. They know what listings are out there, and they notice when properties are missing from searches provided by their realtors. Realtors need access to the comprehensive listings found only in MLS, and they need that information to provide comprehensive comparables and relevant guidance to their clients.

ITSO and its member associations are willing to share their data. The 15 member associations of ITSO share their data with each other, as well as with the Realtors Association of Hamilton-Burlington, Sudbury Real Estate Board, Ottawa Real Estate Board, Cornwall and District Real Estate Board, Rideau-St. Lawrence Real Estate Board and Renfrew County Real Estate Board. The bad news is that there are a handful of real estate associations in Ontario that appear unwilling to reciprocally share their data.

Realtors created these listings and put them in the various MLS Systems across the province. Now, the associations they belong to, formed to act in the best interest of their members, are capitalizing off that data and forcing realtors to pay dual memberships or subscriber fees — just to access their own collective data. This is a tax on realtors that could stop. 

Collaborative data sharing

ITSO found a solution that can give realtors access to all the data from the various MLS Systems in Ontario — while each association maintains their own corporate identity, local presence, and ownership of their data. Associations do not need to be forced or rush into amalgamations simply to gain access to data. However, this solution will only work if the leaders of the associations in the province support this direction. 

ITSO is not, and will not be, a barrier to increasing access to MLS data because we are only custodians of the data for the real estate associations we serve. This is where ITSO and your local real estate association need to hear from you. 

This has been a year of monumental change in the real estate industry, and there are realtors in Ontario who feel they have not been adequately consulted or heard when they voiced opinions. This is your chance to let your association know if you want them to embrace this opportunity to be pro-competitive and reduce artificial geographical boundaries that currently prevent realtors from accessing all MLS data.

The call for action

ITSO is hosting a second province-wide meeting for the leaders of Ontario real estate associations on Nov. 26 to discuss this solution for increasing access to MLS data. We trust that the industry will come out of this meeting with a plan to provide all Ontario realtors with access to the MLS data they need, which will increase professionalism in the real estate industry and raise the public image of the profession. 

We have heard a plethora of reasons as to why increasing access to data can’t or shouldn’t be done. Some associations claim there would be data security concerns, others point to issues regarding the uniqueness of specific markets, and competition is brought up at almost every meeting. 

But these are simply excuses. 

Realtor associations could change to provide services their members want and need instead of just acting as gatekeepers to data. Isn’t it time that the Ontario real estate industry takes this bold step forward?

Phase 2 of the Trust in Real Estate Services Act (TRESA) comes into force on Dec. 1, and it will impact how Ontario’s 96,000 realtors do business.

TRESA replaces the decades-old Real Estate and Business Broker’s Act (REBBA), and three of the most significant changes include:

1. Self-represented parties;
2. Sharing the contents of offers; and
3. Designated representation.

Self-represented parties

The difference between being a “client” or a “customer” during real estate transactions has been a source of confusion for some.

To eliminate confusion, the term “customer” will be removed from TRESA. Once TRESA is effective, real estate consumers can choose to be either a client of the brokerage or self-represented. The expectation is that former customers will become clients.  

TRESA also defines and puts rules in place for self-represented parties.

Put simply, a self-represented party is a consumer who chooses to represent themselves in a real estate transaction.

A self-represented party is not to receive any services from a brokerage. This is very different from being a customer who could receive services under REBBA.

So then, what can realtors do for self-represented parties? They can only provide assistance while ensuring that implied agency is not created.

TRESA states that implied agency is not created if “as a service provided to a client, or incidental to a service provided to a client, a registrant provides assistance to another person without encouraging the other person to rely on the registrant’s skill or judgement in response of a trade in real estate.”

In other words, providing assistance is acceptable as long as the self-represented party does not rely on the registrant’s skill or judgment.

For example, if a buyer who chooses to be self-represented asks you to show them another brokerage’s listing, you can’t. TRESA is clear that you can only provide assistance “as a service provided to a client.” Another brokerage’s seller is not your client.

Another example: A self-represented buyer is interested in purchasing one of your brokerage’s listings, and the buyer has a home to sell; the buyer should determine the language required in the purchase and sale agreement for the sale of their property. The realtor assisting the buyer should not recommend the wording for a condition because determining the correct wording requires their “skill or judgment.”

Sharing the content of offers

Another big change effective Dec. 1 is being able to share the content of competing offers.

REBBA requires that all buyers are made aware of the number of competing offers. This requirement remains under TRESA. However, TRESA allows realtors to share the contents of offers with every buyer who submits an offer at the seller’s written direction.

A seller shall decide which content is to be shared so long as the information disclosed is not the personal information of the person making the offer. Examples would include the buyer’s name or the address of the buyer’s property should the buyer have a home to sell. 

It is important to note that seller’s agents are not required to decide if they will share the content of offers at the time their property is listed for sale or not later than the presentation of offers. For this reason, buyers’ agents should ask their clients how they would feel if the contents of their offer were shared with other buyers. 

If a buyer is opposed to a seller disclosing the terms of their offer, the realtor may want to recommend a condition in the offer to this effect. 

Designated representation

The last of the many changes under TRESA is the introduction of designated representation.

The agency relationship exists between the brokerage and all its representatives in common law agency. When practicing designated representation, however, the agency relationship is between the consumer and the realtor designated as their agent.

By way of example, ABC Realty Inc. has a listing, and the brokerage also happens to represent a buyer who is interested in that listing. In other words, the brokerage represents the seller and the buyer; today, this is known as multiple representation. Practicing a designated representation model, the listing agent would be able to represent the seller, while another agent at ABC Realty Inc. would represent the buyer on behalf of the brokerage to advocate solely for the buyer. The brokerage would retain oversight responsibility for the designated agent’s fulfillment of their duties to the clients.

It is important to note that brokerages need not pick one agency model over the other. The Ontario Real Estate Association (OREA) was successful in convincing the provincial government to allow brokerages to select either common law agency or designated representation on a transaction-by-transaction basis. 

There are many other regulations under TRESA that Ontario realtors must be aware of. Members can visit OREA’s Guidance Hub to find the information needed to navigate the new regulations. This includes a detailed FAQ, backgrounders and video explainers that dive into important topics.