RECO Information Guide

The Real Estate Council of Ontario (RECO) requires that all buyers and sellers be informed about their rights and responsibilities when engaging in a real estate transaction. The RECO Information Guide is an essential resource that provides this information, helping you understand the role of your Realtor, the process of buying or selling a property, and how you are protected by Ontario’s real estate laws.

What Is RECO?

RECO is the regulatory body that oversees real estate professionals in Ontario. They ensure that Realtors act ethically, follow the law, and protect the public's interest. Every licensed Realtor in Ontario must follow RECO’s rules and guidelines.

What Does the RECO Information Guide Cover?

The RECO Information Guide provides critical information, including:

• Your Relationship with Your Realtor: Learn about the different types of representation (client vs. customer) and what you can expect from your Realtor in each relationship.

• Key Responsibilities: Both buyers and sellers have responsibilities throughout the process, and the guide outlines what is expected of you.

• Consumer Protection: RECO protects consumers by regulating the real estate profession, and the guide explains how these protections work and what to do if something goes wrong.

• The Buying and Selling Process: Get an overview of the steps involved in a real estate transaction, from signing a representation agreement to closing the deal.

Why Is the RECO Information Guide Important?

The guide ensures that all parties in a real estate transaction are fully informed about their rights and the process. Realtors are required to present this guide to you at the start of your working relationship so you can feel confident that you’re being represented fairly and transparently.

RECO Information Guide

Click here to access the Residential version of the RECO Information Guide. 

Click here to access the Commercial version of the RECO Information Guide.

Self-Represented Parties

In real estate transactions, both buyers and sellers have the option to work with a Realtor or represent themselves. While it’s possible to handle a transaction without professional representation, there are significant risks involved when acting as a self-represented party.

What Does It Mean to Be Self-Represented?

A self-represented party handles all aspects of the real estate transaction on their own without the assistance of a licensed Realtor. This includes everything from negotiating the price, reviewing contracts, understanding legal documents, and ensuring compliance with Ontario’s real estate laws.

Risks of Being Self-Represented

While some may choose to represent themselves to avoid paying a Realtor’s commission, the risks often outweigh the potential savings:

• Lack of Market Knowledge: Realtors have extensive knowledge of the local market, including pricing trends, comparable sales, and negotiation strategies. Without this expertise, you may overpay or underprice your property.

• Complex Legalities: Real estate contracts contain legal terms and obligations that are difficult to navigate without a professional. Mistakes in contracts can lead to disputes, financial losses, or even legal action.

• Limited Access to Listings: Self-represented buyers may not have access to the full range of available properties, as many homes are listed on the MLS, which is accessible primarily through Realtors.

• No Professional Guidance: Realtors provide valuable guidance during negotiations, help resolve conflicts, and ensure that all deadlines and conditions are met. Without this, you risk making costly errors or missing key details.

Benefits of Working with a Realtor

• Expert Representation: Realtors are trained to represent your best interests and handle all aspects of the transaction professionally and ethically.

• Protection: Working with a licensed Realtor ensures that your transaction is overseen by RECO, offering a layer of consumer protection that self-represented parties do not have.

• Time Savings: Selling or buying a home is a complex and time-consuming process. Having a Realtor handle the details allows you to focus on your move and other important matters.

While it’s possible to represent yourself in a real estate transaction, it’s highly recommended to work with a professional to avoid unnecessary risks and complications. A Realtor’s expertise, experience, and guidance ensure that the process goes smoothly and that your interests are protected.

Information & Disclosure To Self-Represented Party Information Form

Click here to access the Information & Disclosure to Self-Represented Party document.