About organized real estate
Ontario Real Estate Association (OREA)
LSTAR Members are also Members of the Ontario Read Estate Association (OREA), which represents over 50,000 brokers and salespeople belonging to the province's 42 real estate boards. OREA serves its members through a wide variety of publications, educational programs and special services. Learn more about OREA by visiting their website.
Canadian Real Estate Association (CREA)
LSTAR Members are also Members of the Canadian Real Estate Association (CREA), one of Canada's largest single industry trade associations, representing nearly 102,000 real estate brokers and salespeople working through more than 99 real estate boards, 10 provincial associations and one territorial association.
CREA is also responsible for:
Learn more about CREA and the services it provides by visiting their website.
Real Estate Council of Ontario
The Real Estate Council of Ontario (RECO) is the licensing and regulatory body for Ontario's real estate professionals. All LSTAR Members are RECO registrants and are licensed under the Real Estate and Business Brokers Act (REBBA), which is administered by RECO on behalf of the Ontario Ministry of Consumer and Business Services.
Brokers and Salespersons
In Ontario, a Broker is a person licensed by RECO to trade in real estate. Real Estate Brokers may form brokerages or offices, while a salesperson is someone employed, appointed or authorized by brokerages to trade in real estate. The term ÔÇÿagent' is not used to describe a real estate broker or salesperson in Ontario.
What is a REALTOR®?
The term 'REALTOR®' is restricted to those real estate practitioners who have chosen to belong to local, provincial and national real estate associations. In so doing, they have agreed to abide by a strict Code of Ethics that ensures the highest level of service and integrity. All LSTAR Members are REALTORS®.
The Multiple Listing Service® (or MLS®) database system is paid for by LSTAR Members. Residential and commercial listings may be viewed on www.lstar.ca as well as CREA's national websites at REALTOR.ca and ICX. In addition to facilitating real estate sales, the MLS® database system provides a comprehensive record of all active, sold and expired listings, as well as historical data.
REALTOR® Code of Ethics
Registrants in any province who become members of organized real estate have agreed to abide by the REALTOR® Code and its accompanying Articles and Interpretations. The Code establishes a standard of conduct, which in many respects exceeds basic legal requirements and ensures that that the rights and interests of consumers of real estate services are protected.
The Real Estate Council of Ontario (RECO) requires registrants to disclose in writing the nature of the services they are providing and encourages them to obtain written acknowledgement of that disclosure. This disclosure is usually done with an Ontario Real Estate Association (OREA) brochure entitled Working with a REALTOR®, the Agency Relationship, a brochure which includes a tear-off statement that the consumer signs and the REALTOR® retains as proof that disclosure was made. Signing the statement does not obligate the consumer in any way. It just serves as proof that the REALTOR® has discussed the matter with the consumer.
Types of Agency
In real estate, there are three kinds of agency relationship: Seller's Agency, Buyer's Agency & Multiple Agency.
- Seller's Agent: When a real estate brokerage is acting as a “Seller's agent,” it must do what is best for the Seller of a property.
- Buyer's Agent: When a real estate brokerage is acting as a "Buyer's agent," it must do what is best for the Buyer. A written contract establishes Buyer agency. It also explains what services the REALTOR® will provide and spells out who will pay and what obligations to the REALTOR® a Buyer may have. Typically, buyers will be obliged to work exclusively with that REALTOR® for a period of time.
- Multiple Agent: When a real estate brokerage and its salesperson represent both Buyer and Seller. Under this arrangement, the REALTOR® must do what is best for both seller and buyer. In cases of multiple agency, strict procedures must be followed. A REALTOR® can only represent both Buyer and Seller if both agree in writing.
In most transactions, the REALTOR® will be paid from the proceeds of the sale. However, the listing agreement usually specifies the REALTOR®'s fee. Buyers & Sellers will be told in writing for whom a REALTOR® is working.
For a comprehensive step-by-step guide to selling or buying a home, you can visit How REALTORS® Help
This information is provided by the London and St. Thomas Association of REALTORS®. The information herein is believed to be accurate and timely, but no warranty as such is expressed or implied.