"Fostering confidence
and upholding integrity in real estate transactions"

The Real Estate Council of Ontario (RECO) regulates the activity of trading in real estate in the public interest.

RECO administers the Real Estate and Business Brokers Act, 2002 and associated regulations on behalf of the provincial government.

ADVERTISING OF SOLD PROPERTIES

A question registrants commonly ask RECO is about its position on advertising sold properties, the information permitted on sold cards and the advertising of the price or terms of an agreement. This arises more and more often since the federal Personal Information Protection and Electronic Documents Act (PIPEDA) was implemented and registrants are concerned about complying with that new Act. While RECO does not enforce the PIPEDA, we can answer in terms of how the Real Estate and Business Brokers Act 2002 (REBBA 2002) applies.

When using "sold" cards, the card's elements must comply with the REBBA 2002 and we refer you to the following sub-sections of s.36 Code:

(7) A registrant shall not include anything in an advertisement that could reasonably be used to identify a party to the acquisition or disposition of an interest in real estate unless the party has consented in writing.
(8) A registrant shall not include anything in an advertisement that could reasonably be used to identify specific real estate unless the owner of the real estate has consented in writing.
(9) A registrant shall not include anything in an advertisement that could reasonably be used to determine any of the contents of an agreement that deals with the conveyance of an interest in real estate, including any provision of the agreement relating to the price, unless the parties to the agreement have consented in writing.

It is therefore clear that written consent is required in addition to the registrant identification that is required in all advertising.

Determining whose consent to seek, buyer or seller, depends on the timing of the distribution of the sold card and the party (brokerage representing the buyer or brokerage representing the seller) who is sending the sold cards.

Registrants must also keep in mind s.7 Code:

7. (1) A registrant who knows or ought to know that a person is a client/customer of another registrant shall communicate information to the person for the purpose of a trade in real estate only through the other registrant, unless the other registrant has consented in writing.
(2) If a broker or salesperson knows or ought to know that a buyer or seller is a party to an agreement in connection with a trade in real estate with a brokerage other than the brokerage that employs the broker or salesperson, the broker or salesperson shall not induce the buyer or seller to break the agreement.

Please also remember that all advertising is by the brokerage and a salesperson or broker shall not do anything that causes the brokerage to contravene the REBBA 2002 (s.2 Code).

s.2 Code:
2. (1) A broker or salesperson shall not do or omit to do anything that causes the brokerage that employs the broker or salesperson to contravene this Regulation.

RECO provides the following general guidelines for sending sold cards:

SCENARIO 1:
Property sold, transaction not completed, brokerage representing the seller wishes to send a sold card.

  • Consent of the seller is required.

SCENARIO 2:
Property sold, transaction completed, brokerage representing the seller wishes to send a sold card.

  • Consent of the buyer (new owner) is required. If the buyer is not a client/customer of the brokerage representing the seller, s.7 Code would require the brokerage representing the seller to communicate through the brokerage representing the buyer to obtain permission from the buyer.

SCENARIO 3:
Property sold, transaction not completed, brokerage representing the buyer wishes to send a sold card.

  • Consent of the seller and buyer is required. If the seller is not a client/customer of the brokerage representing the buyer, s.7 Code would require the brokerage representing the buyer to communicate through the brokerage representing the seller to obtain permission from the seller.

SCENARIO 4:
Property sold, transaction completed, brokerage representing the buyer wishes to send a sold card.

  • The consent of the buyer (new owner) is required.

In terms of advertising or publishing the price or terms of an agreement, the consent of the buyer and/or seller is required depending on the stage of the subject transaction. RECO provides the following guidelines:

SCENARIO 5
Property sold, transaction not completed, brokerage representing the seller wishes to advertise price and/or terms of the agreement.

  • The consent of the seller and buyer are required. If the buyer is not a client/customer of the brokerage representing the seller, s.7 Code would require the brokerage representing the seller to communicate through the brokerage representing the buyer to obtain permission from the buyer.

SCENARIO 6
Property sold, transaction completed, brokerage representing the seller wishes to advertise price and/or terms of the agreement.

  • The consent of the buyer (new owner) is required. If the buyer is not a client/customer of the brokerage representing the seller, s.7 Code would require the brokerage representing the seller to communicate through the brokerage representing the buyer to obtain permission from the buyer.

SCENARIO 7
Property sold, transaction not completed, brokerage representing the buyer wishes to advertise price and/or terms of the agreement.

  • The consent of the seller and buyer are required. If the seller is not a client/customer of the brokerage representing the buyer, s.7 Code would require the brokerage representing the buyer to communicate through the brokerage representing the seller to obtain permission from the seller.

SCENARIO 8
Property sold, transaction completed, brokerage representing the buyer wishes to advertise price and/or terms of the agreement.

  • The consent of the buyer (new owner) is required.