The RECO Information Guide (guide) contains information that prospective clients and self-represented parties should be aware of before entering an agreement for services with a brokerage or receiving any services or assistance from a real estate agent.
Before providing services or assistance, agents can satisfy their basic obligations in two steps:
1. Give a copy of the guide to the prospective client or self-represented party.
2. Explain the contents of the guide to the prospective client or self-represented party.
Agents are expected to provide the guide to a prospective client before an agreement is entered into with the brokerage. In the case of a self-represented party, agents must also provide the Information and Disclosure to Self-represented Party form.
Purpose of the RECO Information Guide
The purpose of the guide is to help consumers understand:
• The benefits of being a client of a real estate agent.
• The risks of being a self-represented party in a transaction.
• The duties brokerages and agents owe to clients.
• What to look for in an agreement with a brokerage, including remuneration arrangements.
• Multiple representation is not permitted unless they agree to it.
• The change in duties owed to clients and the services that will be provided if the client does agree to multiple representation.
• How to bring a concern to the attention of the brokerage or file a complaint with RECO.
Step 1: Provide the RECO Information Guide
Before an agent provides services to a client or assistance to a self-represented party, the agent must give a copy of the RECO Information Guide to the person.
This new obligation replaces what was in section 10 of the Code of Ethics regulation under REBBA (information before agreements). Those requirements were typically satisfied using the Ontario Real Estate Association’s Form 810, Working with a REALTOR®, or similar documents.
Step 2: Explain the content of the RECO Information Guide
Agents are required to explain the content of the guide. The content of the guide is plain language information and supports conversations agents would normally have with a buyer or seller before providing services. It is an opportunity to highlight the benefits of working with a real estate agent and to demonstrate professionalism by ensuring the buyer or seller fully understands the information being provided to them. Agents should be prepared to respond to questions a prospective client may have about the specific services that could be provided to them under a representation agreement, the type of representation the brokerage provides, the remuneration arrangements, brokerage policies when multiple representation arises, and other matters. With a self-represented party, an agent should be prepared to help them understand the risks of being self-represented in a transaction, including the risks associated with receiving assistance from a brokerage or designated representative that represents a client in the trade.
MODERN BROCK GROUP REALTY LIMITED, BROKERAGE
(INDEPENDENTLY OWNED AND OPERATED)
37 TEMPERANCE LAKE ROAD
ATHENS, ON K0E1B0
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