Since the passing of Bill 145, Trust in Real Estate Services Act, 2020 (TRESA) on October 1, 2020, REALTORS® in Ontario have had the opportunity to incorporate, and can earn an income through a Personal Real Estate Corporation (PREC). With the new rules and regulations in place, some REALTORS® may find they can benefit from a PREC.
- For those members who have formed a PREC, it should be noted that RAHB invoices will continue to be issued to the member in their registrant name, as listed with RECO
- A PREC is exempt from registration under REBBA and is permitted to receive remuneration from a brokerage if the PREC meets all the required criteria and satisfies all the conditions set out in the legislation
- There are advantages and disadvantages to the creation and use of a PREC. Members are encouraged to consult their financial and other experts on whether a PREC is the right choice for them
- A PREC is not a professional corporation as considered under the Business Corporations Act. It is also important to speak to the broker of record to inquire whether the brokerage is willing to enter an agreement with the PREC. Brokerages are not obligated to do so
- You cannot advertise using the name of your PREC to the public
Further information can be found at “A Guide to Personal Real Estate Corporations for Ontario REALTORS®”