Published 7 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Get My Free Estimate →Three changes matter in practice. First, the middle tier is gone: you are now either a client, under a written representation agreement with full duties owed to you, or a self-represented party, owed only fairness and honesty and no advice at all. Second, designated representation lets one brokerage act on both sides of a transaction through separate designated representatives who can each advocate for their own client.
Third, a seller may now direct their brokerage to disclose the substance of competing offers — the number of them, whether the listing brokerage represents any competing buyer, and commission arrangements that could affect acceptance. Personal or identifying information about competing buyers is not disclosed. Before any brokerage provides services or assistance, you must be given the RECO Information Guide.
The old model and the new one
| Before 1 December 2023 | Now |
|---|---|
| Client — full representation | Client — written representation agreement, full duties |
| Customer — limited services under a customer service agreement | Abolished |
| Unrepresented | Self-represented party — owed fairness and honesty only |
Removing the middle tier was the point. It had become a grey area where people believed they were receiving advice they were not entitled to. The current position is blunt and clearer: you are represented, or you are not.
What a self-represented party actually gets
Fairness, honesty and no misrepresentation. Not advice on price. Not negotiating strategy. Not an opinion on whether the property is a good buy. A brokerage may provide information — facts, documents, process — but not counsel.
Designated representation
Where a brokerage would otherwise be in multiple representation — representing both buyer and seller in the same transaction — designated representation names a specific individual for each client. Each designated representative owes full duties to their own client and may advocate for them, while the brokerage itself does not take a side.
This is a meaningful improvement over formal multiple representation, in which the brokerage cannot advocate for either party or give pricing or negotiation advice favouring one.
Open offers
A seller may direct their brokerage to disclose the substance of competing offers. What may be disclosed:
- The number of competing offers
- Whether the listing brokerage represents any competing buyer
- Commission arrangements that could affect whether an offer is accepted
What may not be disclosed: personal or identifying information about competing buyers. The seller controls this in writing, may limit it, and may revoke it at any time during the listing.
Multiple representation, where it still occurs
It requires written informed consent from each client, obtained after the situation is disclosed as soon as the brokerage becomes aware of it and after the differences in service and duties are explained in plain language. In that arrangement the brokerage must remain neutral: no advocacy, no pricing or negotiation advice favouring one side. Where a brokerage represents the seller and one of several competing buyers, that must be disclosed to the other prospective buyers.
What to do with this as a consumer
- Ask for the RECO Information Guide at the first meeting. You are entitled to it before any services or assistance are provided.
- Decide deliberately whether you want to be a client or self-represented, and understand what the second means.
- Read the representation agreement, particularly the remuneration and the holdover.
- If both sides are with one brokerage, ask whether designated representation is available.
- As a seller, decide in advance what, if anything, you want disclosed about competing offers, and put the direction in writing.
The practical takeaway
TRESA made the lines clearer rather than the process easier. The single most valuable thing it gives you is the Information Guide before you commit to anything — read it, and use the questions in it on whoever is sitting across from you.
Frequently asked questions
When did TRESA Phase 2 come into force?
1 December 2023. It amended the framework that previously governed Ontario real estate brokerages and salespeople.
What happened to customer service agreements?
They no longer exist. The old three-tier model of client, customer and no representation has been replaced by two categories: client, under a written representation agreement, and self-represented party, who is owed fairness, honesty and no misrepresentation but not advice or advocacy.
What is a self-represented party owed?
Fairness, honesty, and no misrepresentation. Not advice, not advocacy, not an opinion on price or strategy. If you choose to be self-represented in a transaction where the other side is represented, understand exactly what you are giving up.
What is the RECO Information Guide?
A mandatory plain-language guide covering the advantages of representation, the risks of self-representation, brokerage duties, what to look for in a brokerage agreement including remuneration, multiple representation and consent, and how to raise a complaint. It must be provided before a brokerage provides services or assistance.
How is designated representation different from multiple representation?
In multiple representation the brokerage represents both parties and cannot advocate for either, cannot give pricing or negotiation advice favouring one side, and must obtain written informed consent from each client. Under designated representation, each client has a named individual representative who owes them full duties and can advocate for them.
Can a seller disclose the details of my offer?
Only the substance permitted: the number of competing offers, whether the listing brokerage represents any competing buyer, and commission arrangements that could affect acceptance. Personal and identifying information about competing buyers is not disclosed, and the seller controls the direction in writing and can revoke it.
Thinking about buying or selling at the top end?
Send me the address, or the shortlist you are considering. I will tell you what the property is actually worth today, what the land is worth without the house, what the transfer tax and carrying costs will be, and whether the deal makes sense. Confidential, always.
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Related reading
- Open offers in Ontario: what a seller can and cannot tell other bidders
- When one brokerage represents both sides: the rules and the risks
- How to choose an agent for a $3M+ Toronto sale
- The holdover clause: the line in your listing agreement that follows you
Sources
Everything above that is a rule, a rate or a published number comes from these. Verify anything that matters to your own deal.
About the author — Jatin Dua, Broker of Record
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke, and I work with buyers, sellers and investors across Toronto and the west GTA. A large part of my work sits in the upper end of the market, where the comparables are thin, the rules are heavier and the cost of a wrong number is measured in hundreds of thousands of dollars.
The free estimators on this site are mine. I built them because the first question every owner asks is “what is it worth?” and the honest answer starts with a number you can check yourself. connect@jatindua.com or 437-987-1925.