Opening a Brokerage Office in Ontario

Q: Do I need a building permit to turn a retail unit into an office?

Likely. Building Code Act, 1992 s. 10(1) prohibits changing the use of a building even with no construction where the change would increase hazard as determined in accordance with the building code, unless the chief building official has issued a permit. The City of Toronto puts it flatly: if a change of use is proposed, a building permit is required — and compliance with the zoning by-law is required whether or not a permit is. Get your designer to confirm the occupancy classification before you commit.

Published 12 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty

Last updated 12 September 2026. Written by Jatin Dua, Broker of Record at RE/MAX Quantum Realty, 799 The Queensway, Etobicoke · Commercial & business purchases · 11 min read

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The short answer

RECO asks less of your premises than most people expect, and more of your paperwork. O. Reg. 567/05 s. 24 says a registrant shall not trade in real estate in Ontario from an office located outside Ontario, must maintain an address for service in Ontario, and must keep business records in Ontario if they relate to trading in Ontario. TRESA s. 7(1) adds the rule that decides whether a second location is a problem: no brokerage may conduct business “from more than one place to which the public is invited” unless registered in respect of each place. The harder questions — zoning, signage, parking, accessibility — are ordinary commercial real estate questions, and they are where deals go wrong.

What the regulator actually requires of the premises

The list is short. O. Reg. 567/05 s. 24 requires three things: no trading in Ontario from an office located outside Ontario, an address for service in Ontario, and business records kept in Ontario where they relate to trading in Ontario. TRESA s. 7(1) requires separate registration for each place to which the public is invited, one designated as the main office and the rest as branch offices. Section 7(2) requires a branch office to be under the supervision of a broker, and a branch with more than one salesperson to be under the direct management of a broker or of a salesperson registered at least two years under a broker’s supervision. A replacement s. 7(2) enacted in 2020 is shown on e-Laws as not in force, so the current text governs.

Notice what is not there. No minimum floor area. No street-level door, reception desk, boardroom or sign. The regulator cares where you can be served, where the records live, and whether each public-facing location is registered and supervised.

Storefront or upper floor, in the only terms the Act uses

The registration rule turns on one phrase: a place to which the public is invited. A ground-floor storefront with your name on the glass is unmistakably that. So, very likely, is an upper-floor suite where clients come by appointment. Either way the location must be registered, designated main or branch, and supervised under s. 7(2). The choice between the two is not a compliance question. It is a cost, visibility and fit-out question, and what actually differs is municipal.

Question	Ground-floor storefront	Upper-floor suite
TRESA registration of the location	Required if the public is invited	Required if the public is invited
Change of use under the Building Code	Likely, if the unit was last a retail use	Less likely, if the floor was already offices
Signage	The reason to take the unit; a City permit question	Usually directory and fascia rules in the lease
Accessibility on renovation	The exterior path and entrance are yours	Common elements are usually the landlord’s
Parking	Often on site and often the constraint	Usually allocated stalls under the lease

Records decide your space more than your agent count

O. Reg. 579/05 s. 19 requires a brokerage to retain all documents and records required under the Act and regulations for the period the registrar specifies or, absent that, for at least six years; at the location the registrar specifies or, absent that, at the brokerage’s main office. Section 20 adds that a brokerage acting for a seller must keep a copy of a written offer that did not result in a purchase for at least one year, or instead keep a prescribed nine-item record for the same period.

Read that with s. 24’s requirement that business records relating to Ontario trading be kept in Ontario. The default retention location is the main office, so if you are choosing a small suite, decide early where six years of files will live. That is cheaper to answer before you sign than after.

The trust account and the address you register

TRESA s. 27(1) requires the brokerage to maintain in Ontario an account designated as a trust account at a bank, loan or trust corporation or credit union, to deposit all trust money into it, to keep that money separate from the brokerage’s own at all times, and to disburse only per the terms of the trust. O. Reg. 567/05 requires the account to be designated a “Real Estate Trust Account,” permits only one unless the registrar consents in writing, and requires deposit within five business days. O. Reg. 579/05 s. 13 requires a reconciliation no later than 30 days after each monthly bank statement.

Two points for the moving checklist. RECO names a Notice of Change: Brokerage for changes including real estate trust account information, and a Notice of Address Change for a move. And TRESA s. 28(1) requires notice to the registrar within five days of any change in address for service.

Zoning: is an office actually permitted at that address?

This question kills deals, and only the City can answer it. Toronto’s Zoning By-law 569-2013 is city-wide, but some properties remain subject to former municipal by-laws, and the City states that some provisions of 569-2013 are under appeal to the Ontario Land Tribunal and “are not in full force and effect.” Permissions are layered: uses permitted outright, uses permitted on conditions, then use-specific conditions, with site-specific exceptions in Chapter 900 that can override the base zone and definitions in Chapter 800 that control the meaning of every use term.

In the Commercial Local zone, the uses permitted without conditions under § 30.20.20.10 include office, medical office, financial institution, personal service shop and retail service. Other categories to look at include Commercial Residential, Commercial Residential Employment, and the Employment Industrial Office zone. That tells you where to look. It does not tell you what is permitted at a specific address, because the exceptions and definitions do that.

The City sells written answers. A Zoning Use Review costs $214.79 per registered lot, requires no plans, and assesses whether listed uses are permitted at a specific location — but it excludes parking, loading and built-form standards. For a fuller pre-permit review there is the Zoning Applicable Law Certificate, which replaced the discontinued Zoning Certificate and Preliminary Project Review services, with fees from $214.79 for other proposals to $888.14 for small buildings up to 300 m². My post on zoning conditions covers how to keep this inside a condition rather than a hope.

THE LEASE DOES NOT GRANT THE USE A landlord’s permitted-use clause is a promise between you and the landlord. It does not bind the City. If the unit is not zoned for office use, or the building’s lawful occupancy is something else, a clause saying “premises may be used as a real estate brokerage office” does not make it so — and Building Code Act, 1992 s. 8(2)(a) bars a permit where the work would contravene “any other applicable law,” which is how zoning becomes a permit condition. Put a zoning condition and a lease review condition in the offer, and satisfy both before you are bound.

Changing a retail unit into an office is a permit question

Building Code Act, 1992 s. 10(1) provides that “Even though no construction is proposed, no person shall change the use of a building or part of a building or permit the use to be changed if the change would result in an increase in hazard, as determined in accordance with the building code, unless a permit has been issued by the chief building official.” Section 10(2) requires the chief building official to issue the permit unless the proposed use would contravene the Act, the code or any other applicable law, the application is incomplete, or fees are unpaid.

The City states the rule without the statutory qualifier: a permit is required to change a building’s use, and “Even if no construction is proposed, if a change of use is proposed a building permit is required,” adding that “Even if a building permit is not required, compliance with the Zoning Bylaw is required.” Inside Toronto, treat that as the operating rule and confirm with the chief building official. The current Code is O. Reg. 163/24, which adopts the National Building Code of Canada 2020 as amended by an Ontario document re-dated repeatedly through 2025 and 2026, so your designer should cite the current version. My post on the building permit condition covers how to keep that question open.

Signage, and what I am not going to pretend to know

Signage is usually the whole argument for taking a storefront. There are two questions here and I can only answer one.

What you may put on the sign is settled by the Act. A registrant may be registered in only one name — for a corporate brokerage its complete legal name, an individual’s legal name, or a name registered under the Business Names Act — and TRESA s. 8(6) provides that a registrant “shall not trade in real estate in a name other than the name in which the registrant is registered.” Section 29(1) adds that a brokerage carrying on business alone through an individual broker must carry on in the broker’s name and must not use any description or device suggesting the business is carried on by more than one person or by a corporation. RECO’s advertising rules sit on top of that.

The one I cannot answer is what the City will permit physically — size, projection, illumination, permits and fees under Toronto’s sign by-law. That is not established in the material behind this article, and I will not invent a dimension or a fee to sound complete. Have your sign contractor pull the permit requirements for the specific address before you pay a premium for a storefront you cannot brand.

The short version

The regulator’s premises rules are thin: an Ontario office, an Ontario address for service, Ontario record storage, and separate registration for every place the public is invited. What will actually cost you sits on the municipal side — whether office use is permitted at that address, whether changing the unit’s use needs a permit, what you may put on a sign, how many parking spaces come with the unit, and what a renovation pulls in under the accessibility rules. Get the zoning answer in writing and read the lease before the condition period ends.

Parking, and why a zoning use review will not settle it

If clients drive to you, parking is not a detail. The City’s Zoning Use Review expressly excludes parking, loading and built-form standards, so the document confirming your use is permitted says nothing about whether your parking is adequate or compliant. That is a separate review, and on a leased unit it is usually a question of what the lease grants rather than what the site contains.

Accessibility rules also reach parking. The Integrated Accessibility Standards Regulation’s Design of Public Spaces part covers accessible off-street parking — types of spaces, access aisles and minimum numbers — alongside exterior paths of travel. My post on the parking clause deals with pinning down what you are actually getting.

AODA: renovation is the trigger, not occupancy

The Design of Public Spaces standard applies to public spaces “newly constructed or redeveloped” on and after the dates in s. 80.5, and “redeveloped” is defined in s. 80.1 as “planned significant alterations to public spaces, but does not include maintenance activities, environmental mitigation or environmental restoration.” That is the test: repainting and repairs do not engage it, a planned significant alteration does. The compliance dates have passed — 1 January 2017 for large organizations, 1 January 2018 for small ones.

The provision most likely to catch a brokerage fit-out is s. 80.41 on service counters, which applies “When constructing new service counters, which includes replacing existing service counters.” Where a single queuing line serves one or more counters, each must accommodate a mobility aid, with an appropriate countertop height, knee clearance where a forward approach is required, and clear floor space in front; where there are multiple lines and counters, at least one accessible counter is required for each type of service. Note the scope: the standard governs the listed public spaces, not building interiors — barrier-free requirements for interiors sit in the Ontario Building Code, and I have not verified those provisions, so ask your designer rather than relying on this post.

Separately from any renovation, the obligations that attach to the business itself scale with headcount. With one to nineteen employees you must create accessibility policies, train staff on the Human Rights Code and accessible customer service, provide accessible customer service and employment practices, and provide accessible information on request — with no compliance report required. At twenty or more employees the accessibility compliance report is filed every three years, and the next deadline is 31 December 2026. At fifty or more, documented policies, a multi-year plan reviewed every five years and posted online, written training records and accessible public websites are added.

What belongs in a lease review condition

If you are leasing, the lease is the deal. Commercial Tenancies Act s. 23(1) deems a covenant against assigning or subletting subject to a proviso that consent is not to be unreasonably withheld — “unless the lease contains an express provision to the contrary.” A lease can validly give the landlord absolute discretion, so read the clause instead of relying on the statute. Section 24 adds that a consent extends only to the permission actually given: consent to one assignment does not waive the covenant for the next.

There is also no Ontario statute governing estoppel certificates in commercial leases. They are contractual documents delivered because the lease requires them, and their effect rests on the common law, so sign one carelessly and you may confirm away something you thought you had. My post on the lease review condition sets out what I read and in what order.

If you buy the suite instead of leasing it

Buying changes the arithmetic. Ontario land transfer tax on commercial property tops out at 2.0% of the consideration above $400,000 — the 2.5% tier applies only to land containing one or two single family residences. Toronto’s Municipal Land Transfer Tax has applied to all properties in the City since 1 February 2008 and reaches 2.0% above $400,000 on the “all other property” table, so the combined top marginal rate on Toronto commercial property is 4.0%. The MLTT change effective 1 April 2026 applies only to high-value residential property; the commercial table is unchanged.

On HST, a registrant purchaser generally self-assesses rather than paying tax to the vendor. Under Excise Tax Act s. 221(2) the supplier is not required to collect tax on a taxable sale of real property to a registered recipient, and s. 228(4) requires a registrant who acquired the property primarily for use in commercial activities to report and pay the tax in the return for the period in which it became payable. Your accountant confirms the treatment before you close.

One more rule, and registrants forget it when buying their own office. TRESA s. 32 requires a registrant acquiring or disposing of an interest in real estate to deliver to all other parties a written notice, acknowledged in writing, disclosing that it is a registrant and giving full disclosure of all facts within its knowledge affecting the value of the real estate. Buying your own brokerage office is an acquisition by a registrant. Do the disclosure.

Does RECO require a public office?

It requires registration for one. TRESA s. 7(1) prohibits a brokerage from conducting business from more than one place to which the public is invited unless it is registered in respect of each place, one designated the main office and the rest branch offices. O. Reg. 567/05 s. 24 adds that a registrant cannot trade in Ontario from an office located outside Ontario, must keep an address for service in Ontario, and must keep Ontario trading records in Ontario. There is no prescribed floor area, layout or street frontage.

Can I run the brokerage from home?

The rules in s. 24 are about location, service address and records, not about the type of premises. What you cannot do is invite the public to a second location without registering it under s. 7(1), and a branch office must be supervised by a broker under s. 7(2). Whether a home is a permitted location is a municipal zoning question, not a RECO one, and in Toronto the answer depends on the zone, Chapter 900 exceptions and Chapter 800 definitions. Ask the City before you assume.

How long do I have to tell RECO about the move?

Five days. TRESA s. 28(1) requires a registrant to notify the registrar within five days of any change in address for service, any change in officers or directors, and any change in the information included in the application for registration. RECO’s published guidance names a Notice of Address Change for a move or contact change, and a Notice of Change: Brokerage for things such as a new broker of record, a business name change, or a change to real estate trust account information.

Where do the files have to be stored?

O. Reg. 579/05 s. 19 says for the period the registrar specifies or, if none is specified, at least six years, at the location the registrar specifies or, if none is specified, at the brokerage’s main office. Read that with O. Reg. 567/05 s. 24, which requires business records relating to Ontario trading to be kept in Ontario. Section 20 adds a one-year rule for written offers that did not result in a purchase, or a prescribed nine-item record instead.

Do I need a building permit to turn a retail unit into an office?

Likely. Building Code Act, 1992 s. 10(1) prohibits changing the use of a building even with no construction where the change would increase hazard as determined in accordance with the building code, unless the chief building official has issued a permit. The City of Toronto puts it flatly: if a change of use is proposed, a building permit is required — and compliance with the zoning by-law is required whether or not a permit is. Get your designer to confirm the occupancy classification before you commit.

Will a zoning review confirm my parking?

No. The City’s Zoning Use Review assesses whether listed uses are permitted at a specific location, at $214.79 per registered lot with no plans required, and it expressly excludes parking, loading and built-form standards. Parking is a separate question, and on a leased unit it is largely a question of what the lease grants — how many stalls, where, whether visitors are included, and whether the landlord can relocate them. Deal with it in the lease, not in your head.

When does a renovation trigger the accessibility rules?

When it is a redevelopment rather than maintenance. The Integrated Accessibility Standards Regulation s. 80.1 defines “redeveloped” as “planned significant alterations to public spaces, but does not include maintenance activities, environmental mitigation or environmental restoration,” and s. 80.2 applies the Design of Public Spaces requirements to spaces newly constructed or redeveloped after the dates in s. 80.5 — 1 January 2017 for large organizations, 1 January 2018 for small ones. Section 80.41 catches new service counters, “which includes replacing existing service counters.”

What sign can I put up?

Two answers. Under TRESA s. 8(6) you may not trade in real estate in a name other than the one in which you are registered, and a brokerage carrying on business alone through an individual broker must use the broker’s name under s. 29(1), without any device suggesting more than one person or a corporation. What the City will physically permit — size, projection, illumination, permit and fee — is a Toronto sign by-law question that I have not verified here and will not guess at. Have your sign contractor confirm it for the specific address.

Sources

CHOOSING AN OFFICE FOR YOUR BROKERAGE?

I went through this for my own brokerage at 799 The Queensway, so I know which questions have to be answered before you sign and which can wait. If you are looking at a storefront or a suite in Etobicoke, Toronto or the west GTA, I can help you shortlist units, get the zoning question in front of the City, and structure the offer so the lease review and permit questions sit inside the conditional period.

Book a 15-minute call or call or text 833-330-1925.

Your RECO filings are yours to make and your lease is your lawyer’s to review. I can tell you what to ask for, and when a clause is worth arguing about.

More in this series

Jatin Dua is Broker of Record and co-founder of RE/MAX Quantum Realty, Brokerage, Unit 101, 799 The Queensway, Etobicoke. Four-plus years in the GTA and more than $100M in sales volume. He works on commercial and business purchases across Toronto and the west GTA.

This is general professional commentary from a Broker of Record on commercial and business acquisitions in Ontario. It is not legal, tax or accounting advice, and it does not create any professional relationship. Whether a licence transfers, how a purchase should be structured, what tax applies and what a regulator will require on your particular file are questions for your lawyer, your accountant and the regulator itself. Rules, fees and published requirements change — verify anything you intend to rely on against the primary source on the day you rely on it.