Understanding the difference between RECO, MPBSDP and OREA

Real Estate Council of Ontario (RECO) 

RECO is the regulator for real estate professionals in Ontario.

Registration is mandatory to legally trade in real estate in Ontario.

RECO’s mandate is consumer protection, and as a delegated administrative authority, RECO enforces the law in the public interest. 

RECO’s mission is to promote a safe and informed real estate market for consumers in Ontario through effective and innovative regulation of the services offered by those who trade in real estate. 

RECO’s role:

• Help consumers make informed decisions when buying or selling a home and understand that there are benefits to working with a regulated professional
• Administer and enforce TRESA and a code of ethics. Provide advice to government regarding consumer protection legislation
• Help registrants understand and follow TRESA. Investigate complaints about registrants who may have violated TRESA
• Be accountable to the public through the Ontario government
• Set the standards for pre-registration, articling and broker education 
• Develop and deliver mandatory continuing education courses
• Administer a mandatory insurance program that includes consumer deposit protection, errors and omissions coverage and commission protection 

The Ministry of Public and Business Service Delivery and Procurement (MPBSDP)

MPBSDP is a ministry in the Ontario government that delivers vital programs, services and products — ranging from health cards, drivers licences, and birth certificates to consumer protection and public safety — all to help create a better quality of life for Ontario’s families.

Relationship between MPBSDP and RECO:  

• RECO is one of 11 delegated administrative authorities overseen by MPBSDP (the ministry). The ministry is responsible for any amendments to the Trust in Real Estate Services Act, 2002 (TRESA) and its associated regulations
• RECO has been delegated by the government as the authority that administers and enforces TRESA, and is responsible for day-to-day delivery of services
• The minister is accountable to the Legislative Assembly for the fulfilment of the statutory mandate by RECO
• RECO’s Board of Directors is accountable to the minister through the RECO chair for the performance of RECO

Ontario Real Estate Association (OREA)

OREA is a professional association.

Membership is voluntary.

OREA’s mandate is to work on behalf of its members. 

OREA’s mission is to help Ontario REALTORS® succeed in building stronger communities.

OREA’s role:

• Encourage consumers to use a REALTOR® when they buy or sell a home
• Work to create a legislative and regulatory environment at Queen’s Park that is favourable to REALTORS® and real estate
• Provide information, tools and services, like standard forms, to help REALTORS® with their businesses
• Be accountable to its REALTOR® members
• Provide voluntary courses for individual professional development
• Develop forms and clauses for residential and commercial transactions. For example, Agreement of Purchase and Sale, Listing Agreement and Buyer Representation Agreement