TRESA Code of Ethics (O. Reg. 365/22)

Sources: Ontario e-Laws, Code of Ethics, O. Reg. 365/22 under the Trust in Real Estate Services Act, 2002 — https://www.ontario.ca/laws/regulation/220365 · RECO, "Legislation RECO administers" — https://www.reco.on.ca/about/what-we-do/legislation-reco-administers

Reference summary for an Ontario realty knowledge base. General information, not legal advice. The regulation can be amended — verify the current text and section numbering at Ontario e-Laws before relying on any specific duty.

Important citation correction: The task brief referred to the current Code of Ethics as "O. Reg. 536/23." RECO's official list of the legislation it administers identifies the Code of Ethics as O. Reg. 365/22, and "536/20" is the Personal Real Estate Corporations regulation — no "536/23" Code of Ethics appears in RECO's list. This file therefore documents O. Reg. 365/22, the Code of Ethics in force under TRESA. If a differently numbered instrument is later confirmed, re-verify at e-Laws.

Effective-date note: O. Reg. 365/22 replaced the earlier Code of Ethics (O. Reg. 580/05). Different provisions were phased in, with the modern representation/disclosure regime aligning to TRESA Phase 2 on December 1, 2023. Treat the precise in-force date of any single section as "verify current at e-Laws."

What the Code of Ethics is

The Code of Ethics is the regulation that translates TRESA's consumer-protection purpose into concrete standards of professional conduct binding on every registrant — brokerages, brokers, and salespersons. Breaching it can be the basis of a complaint to RECO and a proceeding before RECO's discipline committee. O. Reg. 365/22 modernized and reorganized the old Code, separating high-level ethical principles from more technical procedural requirements found in other regulations.

The duties below are grouped by theme. Section headings and exact wording live in the regulation; this is a faithful plain-language distillation, not the statutory text.

Core duties: fairness, honesty, integrity, best interests

Registrants must act with courtesy, honesty, good faith, and integrity toward every person they deal with in the course of a trade — clients, self-represented parties, and other registrants alike.

Toward their clients, registrants must promote and protect the client's best interests. This is the heart of the client relationship: putting the client's interests first within the bounds of honesty and the law.

Registrants must not engage in disgraceful, dishonourable, unprofessional, or unbecoming conduct, and must not do anything that would bring the profession into disrepute.

Competence and conscientious service

Registrants must provide conscientious and competent service, exercising reasonable knowledge, skill, judgment, and competence. Related obligations include:

• Providing opinions and advice only within the registrant's area of competence, and recommending that the client obtain independent professional advice (legal, financial, technical) where a matter falls outside that competence.
• Taking reasonable steps to ensure the client understands the information, documents, and consequences relevant to a trade.
• Declining to act where the registrant is not competent to provide the service required.
• Maintaining client confidentiality, both during and after the relationship.

Accuracy, error, and misrepresentation

Registrants must use their best efforts to ensure that representations are accurate and not misleading, and must not knowingly make false, inaccurate, or misleading statements. They must not engage in or be party to fraud, misrepresentation, or deceit, and must take reasonable steps to avoid error, misrepresentation, or concealment of material facts. A registrant who becomes aware of an error or misrepresentation is expected to act to correct it.

Conflict of interest and disclosure of interest

The Code requires registrants to avoid conflicts of interest, and where a conflict exists or arises, to manage it transparently. A registrant must not act where their interests (or those of a related person) conflict with a client's interests unless the registrant:

1. Discloses the conflict in writing;
2. Recommends the client obtain independent legal (or other professional) advice;
3. Takes reasonable steps to ensure the client understands the nature of the conflict; and
4. Obtains the client's written consent to continue.

Disclosure of interest in a trade (registrant buying or selling). A specific and frequently-cited duty applies when a registrant — or a person related to the registrant, or the brokerage — acquires or disposes of an interest in real estate, directly or indirectly. In that situation the registrant must disclose, in writing and before any agreement is entered into, the nature of that interest to the other party. This covers a registrant buying a property personally, selling their own property, or having an ownership/financial stake in a party to the trade. The rule prevents registrants from using their position or information advantage without the other side knowing.

Treating all parties fairly and dealing with self-represented parties

Registrants must treat every party to a trade fairly, honestly, and with integrity — this fairness duty extends beyond their own client to the other side and to self-represented parties.

When dealing with a self-represented party (SRP) — a person who is not a client of any brokerage — the registrant must not provide client-level advice or services, must not encourage the person to remain self-represented, and must not discourage them from seeking their own representation. The registrant may provide the RECO Information Guide and general information. (See the TRESA reference for the full SRP rules.)

Disclosure of representation (multiple / designated)

Consistent with TRESA's Phase 2 representation model, the Code requires clear disclosure of how a party is being represented:

• Whether a person is a client (and under designated representation or brokerage representation) or a self-represented party.
• Any multiple representation — where the same registrant would represent more than one client in a trade — requires written disclosure and the informed written consent of every affected client, obtained before the multiple representation occurs, along with a plain explanation of the resulting limits on the services, advice, and information the registrant can provide.

Financial responsibility and handling of money

Registrants and brokerages must deal with deposits, trust money, and commissions honestly and in accordance with the Act — including proper accounting for trust funds and not misappropriating or improperly commingling money. Advertising and inducement conduct is also constrained: registrants must not use false or misleading advertising, and must be transparent about any inducements, rebates, or benefits offered or received.

Prohibited and unprofessional conduct

Beyond the specific duties above, the Code prohibits conduct including:

• Contravening, or advising/assisting another person to contravene, TRESA or any other law applicable to a trade in real estate.
• Abusive, intimidating, coercive, or harassing conduct.
• Contravening the Ontario Human Rights Code, or discriminating against any person.
• Conduct that is otherwise disgraceful, dishonourable, unprofessional, or unbecoming a registrant.

Complaint and discipline linkage

The Code of Ethics is enforceable. A member of the public (or another registrant) may complain to RECO that a registrant breached the Code. RECO assesses and investigates; where warranted, a matter may be referred to the discipline committee, a statutory tribunal, which can find that a registrant failed to comply and impose penalties — such as required education, fines, conditions on registration, or suspension/revocation. Following TRESA Phase 2, the discipline committee's authority was expanded to address alleged breaches of the Act itself, not only the Code of Ethics. (See the RECO reference file for the full complaints, discipline, and appeals process, including current penalty ceilings.)

Because specific section numbers, wording, and penalty amounts can change, verify current at Ontario e-Laws (https://www.ontario.ca/laws/regulation/220365) and reco.on.ca before quoting any exact figure or provision.