Client vs Self-Represented Party (SRP): What Changed Under Ontario’s Real Estate Rules

In everyday language, people often use the words client and customer interchangeably. In Ontario real estate, those words were a source of confusion for many years.

That changed with the introduction of the Trust in Real Estate Services Act (TRESA).

Under TRESA, people involved in a real estate transaction are no longer described as “clients” and “customers.” Instead, you are now either:

• A client of a brokerage, or

• A Self-Represented Party (SRP)

Understanding the difference matters. It affects what an agent is allowed to do for you, what they are not allowed to do, and how your interests are protected during a transaction.

What It Means to Be a Client

When you choose to be a client, you enter into a representation agreement with a real estate brokerage. For buyers, this is commonly a Buyer Representation Agreement. For sellers, it is a Listing Agreement.

By signing a representation agreement, you are hiring the brokerage to act on your behalf in a real estate transaction.

Representation under TRESA

Under the current rules, representation may take one of two forms:

• Brokerage representation, [more common with smaller brokerages] where the brokerage as a whole represents you, or

• Designated representation, where one or more specific agents within the brokerage are named as your representative(s). [This is the type of representation you will receive from a Remax Escarpment Realty agent.]

Designated representation was introduced to reduce conflicts of interest within brokerages. If you have a designated representative, that individual is responsible for representing your interests. Other agents in the same brokerage must treat you impartially and objectively.

What a Client Relationship Includes

When you are a client, the brokerage owes you specific legal duties.

In plain language, that means:

• Your representative must act in your best interests

• They must be loyal to you in the transaction

• They must keep your confidential information confidential

• They must avoid conflicts of interest, or disclose them and obtain your consent if they arise

• They must provide competent, conscientious service

Confidential information typically includes things like:

• Your motivation for buying or selling

• The maximum price you would pay or the minimum price you would accept

• Your negotiating strategy, timing pressures, or personal circumstances

This confidentiality continues even after the transaction ends.

How This Plays Out in Real Life

Being a client allows your representative to give you opinions, advice, and strategic guidance.

That can include:

• Researching comparable sales to help you price or offer appropriately

• Advising on offer conditions such as financing, inspection, or sale of property

• Flagging potential risks that may not be obvious at first glance

• Negotiating terms and price with the other party

• Taking reasonable steps to identify and disclose material facts that could affect your decisions

Material facts are things that could reasonably influence whether you buy or sell a property, what price you offer or accept, or what conditions you include. What counts as material can vary from person to person, which is why your representative will ask questions about your plans, lifestyle, and priorities.

What It Means to Be a Self-Represented Party (SRP)

If you are involved in a real estate transaction and do not have a representation agreement with a brokerage, you are considered a self-represented party.

Being an SRP means you are representing yourself.

You are responsible for protecting your own interests, making your own decisions, and doing your own due diligence.

This applies whether you are buying or selling.

What an Agent Can and Cannot Do for an SRP

This is the area that causes the most confusion.

If the other party in the transaction is represented by a brokerage, that agent does not work for you.

Their legal obligation is to their client.

What an agent can do when dealing with an SRP

An agent may provide limited assistance to a self-represented party only if:

• The agent represents a client in that transaction

• The assistance is provided as part of serving that client’s best interests [for example, showing a home they have listed to potential buyers]

• The agent has verified that the person is self-represented

• The agent has provided and explained the RECO Information Guide and the Information and Disclosure to Self-Represented Party form, and made best efforts to obtain acknowledgement

An agent may also:

• Provide general real estate information

• Encourage the SRP to seek independent representation

• Communicate factual information necessary to move the transaction forward

What an agent cannot do for an SRP

An agent cannot:

• Provide opinions, advice, or recommendations to the SRP

• Negotiate on the SRP’s behalf

• Suggest pricing, offer strategy, or conditions

• Encourage the person to remain self-represented

• Discourage the SRP from working with another agent

Anything you share with the other party’s agent that could affect their client’s position may be shared with that client.

That includes your motivation, budget limits, or urgency.

Why This Difference Matters

The difference between being a client and being self-represented is not about paperwork. It’s about who is allowed to protect your interests.

If you are a client:

• You receive advice, advocacy, and strategic guidance

• Your confidential information is protected

• Your representative is legally required to put your interests first

If you are self-represented:

• You are responsible for your own pricing, strategy, and decisions

• The other party’s agent cannot guide you

• You are negotiating with someone who likely has professional support

Some people choose to self-represent because they feel confident handling the process on their own. Others value having a professional responsible for navigating risk, negotiations, and disclosure obligations.

There is no single right choice for everyone. What matters is understanding the difference before you proceed.

Take the Time to Understand Your Options

Before signing anything or sharing sensitive information, make sure you understand:

• Who represents whom

• What duties are owed to you

• What protections you do or do not have

Ontario’s real estate rules are designed to promote transparency. Knowing where you stand helps you make better decisions, avoid misunderstandings, and reduce risk during a major financial transaction.

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