Selling Property as a Realtor? Here’s What You Need to Disclose

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As a Realtor, you have an obligation to disclose your status as a "registrant" when selling a property - and any facts that affect the value of the real estate.

This obligation comes directly from the Trust in Real Estate Services Act (TRESA).

Acquisition or divestiture by registrant
32 (1) Unless the registrant first delivers to all other parties to the agreement the notice described in subsection (2) and the other parties have acknowledged in writing receipt of the notice, no registrant shall, directly or indirectly,
(a)  purchase, lease, exchange or otherwise acquire for himself, herself, or itself, any interest in real estate, or make an offer to do so; or
(b)  divest himself, herself, or itself of any interest in real estate, or make an offer to do so.  2004, c. 19, s. 18 (21).

So, what exactly does this mean?

If you are selling a property that you own (directly or indirectly), you have to provide the Buyer with notice that you are a Realtor.

Typically, you use Form 161 Registrant Disclosure of Interest: Disposition of Property.

The obligation to disclose yourself as a registrant applies even if you hire another Realtor to sell the property - it's your status as a registrant (Realtor) which triggers the requirement for disclosure.

If you are selling property that you have an interest in, you need to fill out and sign the disclosure AND ensure any buyer acknowledges receipt in writing before a deal is signed.

So, who exactly needs to sign Form 161?

Only the person who is a Realtor AND has an interest in the property.

So, if you're acting as the Realtor to sell your own property, you of course fill out Form 161.

If you hire another Realtor to sell your property - they do not sign Form 161, you do, because you are the Seller who happens to be a registrant.

What about the signing line for the Registrant's Broker of Record?

Curiously, Form 161 includes a signing line for the Registrant's Broker of Record:

I have seen debates and arguments about the necessity of the Broker's signature.

The TRESA legislation actually outlines the requirements for the content of the Disclosure Notice here:

Contents of notice
(2) The notice referred to in subsection (1) shall be in writing and shall include,
(a)  a statement that the registrant is a brokerage, broker or salesperson, as the case may be;
(b)  full disclosure of all facts within the registrant’s knowledge that affect or will affect the value of the real estate; and
(c)  in the case of a transaction described in clause (1) (a), the particulars of any negotiation, offer or agreement by or on behalf of the registrant for the subsequent sale, lease, exchange or other disposition of an interest in the real estate to any other person.  2004, c. 19, s. 18 (21).

Looking at this, there is no legislative requirement for a Broker of Record's signature to be on the disclosure form in order to meet the obligations under TRESA.

Remember, just because an OREA form (which is a standard document for convenience) includes something, doesn’t automatically mean it’s a legal requirement.

There is of course practical value to having their signature - Broker of Records want to know their agents are disposing of properties. Plus, it doesn't hurt to have a witness that you completed the disclosure.

But in terms of a legal requirement, it does not appear to be mandated by the legislation.

I'd be interested to hear from any Broker of Records and their take on this.