The recommendation, detailed in OREA’s response to the government’s consultation, highlights British Columbia’s penalty model as a potential blueprint for reducing ambiguity in how violations are categorized. OREA has long supported administrative monetary penalties as a tool to handle straightforward violations more efficiently while reserving regulatory resources for severe misconduct. However, the association emphasizes the need for a more precise framework to ensure proportionality in enforcement actions.
Comparing Penalty Models
British Columbia’s real estate regulator divides violations into six distinct categories, allowing its superintendent to consider factors such as material harm to consumers, whether an incident was isolated, inadvertent, or quickly corrected. In contrast, Ontario’s proposed framework outlines four risk levels, which OREA argues are less precisely defined. “In contrast, the proposed framework from Ontario only considers four risk levels, which means it’s less precisely defined compared to the B.C. model,” said OREA acting CEO Diane Brisebois.
She noted that B.C.’s first two categories—Category A for low-risk business infractions and Category B for minor matters with no material harm—offer clearer guidance for professionals managing compliance requirements. OREA is not seeking a direct replication of B.C.’s system but recommends adopting its specificity to minimize confusion.
Related Post: Natural light trumps size for home value
Balancing Enforcement and Education
OREA’s stance centers on proportionality: financial penalties should apply only when violations pose a risk to consumers, while less severe issues merit educational or supportive measures. “If it is not harming consumers, if it is low risk, there are other ways of dealing with it than a monetary penalty,” Brisebois explained. This approach aligns with OREA’s long-standing advocacy for administrative penalties since at least 2024, when the association first outlined its vision in the white paper Continuing to Raise the Bar for Real Estate in Ontario. The model would escalate responses based on the seriousness of conduct and its potential impact, ensuring professionals understand how rules are applied and have access to support when mistakes do not warrant fines.
The government’s consultation also addresses brokerage trust accounts, proposing changes to clarify requirements for money held in trust. OREA supports the consumer-protection goal but seeks more details on whether the changes necessitate new rules or could be achieved through improved guidance and education. “At the end of the day, OREA’s position is that trust accounts are sacred and consumer protection is non-negotiable,” Brisebois stated. The current consultation does not cover all issues from OREA’s 2024 recommendations, such as latent defect disclosures or closing an auctioneer exemption, which Brisebois says will likely resurface in future discussions.
Among OREA’s nine recommendations from its 2024 TRESA white paper, several issues remain outside the current government consultation. These include proposed changes to how latent defects in homes are disclosed to buyers and a call to eliminate an exemption that allows certain real estate transactions to proceed without a registered professional.
Read Also: Independent real estate agents face costly tax traps
Brisebois noted that while these topics are not the focus of the ongoing discussion, they are likely to emerge in future consultations. “Our position from 2024 hasn’t changed, but we also understand that the focus may be on different items as we go through different periods of consultation,” she explained. OREA remains committed to advancing all its recommendations over time, viewing them as essential to strengthening consumer protections and professional standards in Ontario’s real estate sector.
OREA’s Advocacy Vision
Brisebois, who joined OREA as acting CEO after a period of leadership transitions, emphasized the importance of rebuilding member trust through transparent communication. Her experience leading the Retail Council of Canada for over three decades informs her approach to advocacy and stakeholder engagement. “The one thing that we’re working on right now is to ensure that we’re not the best-kept secret,” she said, highlighting efforts to make OREA’s work more visible to its members. The association aims to demonstrate its value by supporting professionals through education, collaboration with regulators, and proactive defense of their interests in policy discussions.
