What is TRESA?
TRESA is Ontario's Trust in Real Estate Services Act, 2002, the primary law requiring real estate registrants to maintain separate trust accounts, keep detailed records, and protect client funds throughout transactions.
The Trust in Real Estate Services Act, 2002 (TRESA) is Ontario's foundational statute that sets out how registered real estate agents and brokers must handle client money and property. Administered by Real Estate Council of Ontario (RECO), TRESA requires all registrants to hold client funds, deposits, and other money in designated trust accounts separate from their operating business accounts.
Key obligations under TRESA include:
- Maintaining a trust account at an Ontario bank or credit union in the brokerage's name
- Depositing all client money within five business days of receipt
- Keeping records that show every deposit, withdrawal, and balance for each transaction
- Never borrowing from or using the trust account for business expenses
- Reconciling the trust account monthly with a licensed accountant's review at least annually
- Handling earnest money deposits and purchase price holdbacks according to legislated timelines
Brokers are responsible for ensuring their agents follow these rules. Violations can result in fines, suspension, or license revocation by RECO. For buyers and sellers, TRESA compliance means their funds are protected from misuse or commingling with brokerage money, reducing fraud risk and ensuring funds are available when needed to complete a deal. Real estate professionals across Ontario must be registered and follow TRESA standards to operate legally.