Currently, Ontario real estate salespeople are prevented by the Real Estate and Business Brokers Act (REBBA), 2002 from incorporating their businesses through a personal real estate corporation (PREC).
Other regulated professions, including chartered accountants, lawyers, health professionals, social workers, mortgage brokers, insurance agents, architects and engineers, can all form personal corporations.
Since 2008, British Columbia, Quebec, Manitoba, Saskatchewan, Alberta and Nova Scotia have all moved to allow real estate salespeople to incorporate.
Real estate salespeople who form personal corporations will continue to be subject to all professional and ethical obligations under REBBA, 2002.
OREA calls on the Ontario government to amend REBBA, 2002 to permit real estate salespeople to incorporate.
Allowing personal real estate corporations will help REALTORS® with their small businesses, level the playing field with other regulated professions and harmonize the practice with other provinces.