Disclosure of Related Persons

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A couple of weeks ago, I wrote about disclosure requirements when a Realtor is selling their own property.

As promised, I'm going to expand on disclosure obligations when it comes to property interests and "Related Persons".

This time we look at TRESA: General Regulations, specifically section 22.9 Disclosure of Interest.

In layman's terms, the legislation says:

If you’re representing a client in buying or selling real estate, you need to disclose any property interest that you or certain related people have in the property.

Who is considered a Related Person?

• A spouse.
• A child.
• A parent.
• Any other relative by blood, marriage, or adoption of the above noted people.

Who do you provide the disclosure to?

• Your client.
• Every person making or receiving an offer.

What to include in the disclosure?

• A description of the relationship between the person who has the property interest and the Realtor, if applicable.
• A description of the property interest.

When to provide the disclosure?

• As soon as you know (or should reasonably know) about any of these interests, and
• before any offer is made, you need to provide a disclosure.

Getting Confirmation:

• You must make your best effort to get a written acknowledgment from everyone who receives the disclosure, confirming that they’ve received it. Provide them with a copy once they sign.

– – –

These disclosure requirements should be familiar to most experienced Realtors.

However, one thing I always like to remind Realtors is the difference between regulatory compliance and contract law.

Let's say a Realtor fails to make the required disclosure outlined above—does this mean the Agreement of Purchase and Sale (APS) becomes null and void?

Absolutely not.

A failure to disclose might have serious consequences for the Realtor, such as regulatory penalties or disciplinary actions, but it doesn’t automatically invalidate the contract between the buyer and seller.

Contract law and regulatory requirements operate separately, so while non-compliance can impact a Realtor’s professional standing, the validity of the APS typically remains intact.