Professional Conduct
Professional Conduct TRESA is the Trust in Real Estate Services Act and provides the following applying to real estate brokers and salespeople in Ontario. All states and provinces have similar requirements to be a registered real estate broker or salesperson.
Acting honestly is more than being technically accurate in a statement. It also means not omitting or failing to share relevant information. Acting honestly is being candid and forthright.
Acting with integrity means engaging in conduct that is consistent with ethical principles. Acting with integrity is what keeps someone from compromising values, even when that makes things more difficult. Integrity aligns behaviour with beliefs and values.
Acting in good faith involves acting reasonably, refraining from actions that could cause harm to any party, and avoiding abusive and arbitrary behaviour. Acting in good faith is exemplified through an agent’s commitment to fulfill their duties and obligations with honesty and integrity.
Acting with courtesy is demonstrated by showing respect for others, being polite, and avoiding rude or provocative behavior in all interactions.
Agents are prohibited from engaging in any act or omission that could reasonably be regarded as being disgraceful, dishonourable, unprofessional, or unbecoming an agent.
Agents are also prohibited from engaging in any conduct that is likely to bring the sector into disrepute or undermine public confidence in the regulation of brokerages and agents.
Many regulated professions are subject to similar prohibitions.
Agents are prohibited from counseling, advising, or knowingly assisting a person to contravene the legislation or any other law applicable to a trade in real estate or relevant to carrying on business as a registrant.
Agents must not engage in or be a party to fraud.
The prohibition against fraud is separated from the prohibition against misrepresentation and unethical practice.
Agents must make best efforts to ensure that any representations are accurate and are not misleading.
Agents must not engage in or be a party to misrepresentation or any unethical practice.
Agents must not treat any person in a manner that would contravene the Ontario Human Rights Code. The Ontario Human Rights Code is a provincial law that gives everybody equal rights and opportunities without discrimination in areas such as jobs, housing, and services. One of the Code’s goals is to prevent discrimination.
Agents must not engage in conduct that is intimidating, coercive, abusive, or that constitutes undue pressure or harassment.
Sections 8 to 12 relate to conscientious, competent, and quality service.
Agents have an obligation to promote and protect the best interests of the clients they represent. A client relies on the agent to guide them through decisions on what is, for many, the most significant financial transaction of their life. When it is personal real estate, it is about a “home,” something more than just a property or real estate asset.
The client’s interests—not the agent’s—must come first.
When promoting and protecting a client’s best interests, it is not enough to simply provide information, opinions, or advice. Agents must also take steps to satisfy themselves that the client understands the information being provided and how it might impact the client’s decisions. To help in verifying a client’s understanding, an agent might ask the client to explain in their own words, the advice the agent is giving them.
Promoting and protecting a client’s best interests is also relevant when providing required disclosures. It’s important to have a discussion with the client to explain the information being disclosed, why it matters to them, and how it might affect their decisions. This is the basis of informed decision-making.
If there is any reason to believe that the client does not understand the information or how it might affect their decisions, an agent should consider recommending to the client that they seek independent advice. In some cases, a client may benefit from receiving help through an interpreter, or from their lawyer or a family member.
In carrying on business, agents must provide conscientious, courteous, and responsive service to their clients. They must also demonstrate reasonable knowledge, skill, judgment, and competence in providing those services and in providing any opinions or advice.
Conscientious service means exercising care in doing what you are supposed to do and doing it thoroughly and correctly. It includes being reliable, setting and meeting high standards, holding yourself accountable, and demonstrating your attention to every aspect of the services you provide to your client.
Competence is the ability to do something well or effectively. Competence starts with completing the registration education program and is established and enhanced through continuing education courses, other ongoing professional development, and practical experience gained over time. Knowledge, skill, judgment, and competence are strengthened through a combination of ongoing learning and practical experience.
Competence also requires an appreciation of one’s strengths, including areas of expertise, and one’s limitations, including a lack of expertise in particular subject matter.
Agents must not provide services, opinions, or advice to a self-represented party in respect of a trade. Agents must be cautious when providing assistance not to encourage a self-represented party to rely on their knowledge, skill, or judgment in respect of a trade.
The self-represented party should understand that the decision to be self-represented means they will not benefit from any services, opinions, or advice that a brokerage or agent might otherwise be able to provide under a representation agreement and that any assistance they might receive is intended to benefit the agent’s client.
Earlier in the course, we discussed what a self-represented party is and how to deal with self-represented parties in a trade.
If an agent is not able to provide competent service or is not authorized by law to provide the service, the agent has an ethical obligation to advise the client or prospective client to obtain services from another person. This might arise, for example, if a buyer is interested in a property type or geographic area, and the agent lacks the necessary knowledge and skill to deal with the matter.
Similarly, an agent must not discourage a person from seeking a particular kind of service from another person.
Maintaining confidentiality is a key component of a client relationship and the duty of confidentiality continues after the client relationship ends.
Brokerages and agents must protect the confidentiality of client information. Confidential client information cannot be disclosed unless the client has provided written consent, or the disclosure is required by law. Remember, under designated representation, a designated representative is prohibited from sharing confidential client information with any agent or other person employed by the brokerage.
Personal information is also protected under federal privacy legislation. Agents must generally obtain a person’s consent when they collect, use, or disclose a person’s personal information. Personal information can only be used for the purpose for which it was collected and the person to whom the information relates must have consented to the information being used for that purpose.
Promoting and protecting the best interests of a client includes avoiding any conflict or potential conflict of interest. A conflict or potential conflict compromises the client relationship and puts the client at risk.
In the event a conflict or potential conflict does arise, no further services can be provided until the required steps are taken. The agent must make the required disclosure, the client must be advised to seek independent professional advice, and the agent must take steps to ensure the person demonstrates a reasonable understanding of the conflict. After those steps are taken, if the client agrees to continue receiving services, the necessary consent must be obtained before the agent can resume providing services.
While representation and services may be permitted if consent is obtained, an agent should exercise caution in continuing to act for a client where there is an acknowledged conflict of interest. There might also be circumstances where the conflict is so severe that it cannot be managed, and the agent should not seek the client’s consent or continue to provide services even if the client does consent.
s professionals, agents are expected to respect the relationship between other agents and their clients.
An agent must not communicate directly with another agent’s client unless they have the written consent of the agent representing that client.
Brokerages and agents must not obstruct RECO’s administration of the law. This includes, but is not limited to conduct that:
- Prevents or seeks to prevent a person from making a complaint to RECO;
- Encourages a person to withdraw a complaint made to RECO;
- Prevents or seeks to prevent RECO from making a request for information with respect to a complaint; or
- Prevents or seeks to prevent RECO from receiving accurate and complete information in response to a request for information in relation to a complaint.
For greater clarity, while agents are permitted to engage in mediation, settlement discussions, negotiation, or arbitration to settle a dispute, the agreement must not include a requirement that the person refrain from making a complaint to RECO or withdraw a
Brokerages have a duty to ensure that every agent they employ carries out their duties in compliance with the Code of Ethics regulation.
The broker of record has a duty to ensure that the brokerage complies with the Code of Ethics regulation.
All agents play a role in supporting the reputation of the sector generally, and in maintaining public confidence in the regulation of the sector.
Professional conduct expectations include:
- Acting with integrity, honesty, good faith, and courtesy,
- Providing conscientious, courteous, and responsive service to clients,
- Promoting and protecting the best interests of clients,
- Avoiding conflicts of interest, and disclosing conflicts if they arise,
- Maintaining the confidentiality of client information,
- Dealing appropriately with self-represented parties, and
- Respecting other agent’s client relationships.
Agents are expected to conduct themselves in a professional manner in fulfilling their duties and obligations under the legislation and in fulfilling their obligations to clients.