By Simon Royer | RE/MAX Icon Realty

Buying or selling real estate in Ontario is one of the largest financial decisions most people will ever make. With so much at stake, transparency and consumer protection are critical.

That is exactly why the RECO Guide exists.

I regularly share this guide with clients and first-time buyers because understanding the process early leads to better decisions later. In fact, when I am hosting an open house, I always have a copy of the RECO Guide on hand. It is something I like to give to first-time buyers simply to help educate them on how the process works, long before they feel pressure to make a decision.

What Is the RECO Guide?

The RECO Guide is a mandatory disclosure document created by the Real Estate Council of Ontario (RECO).

It explains:

• How real estate professionals are permitted to work with buyers and sellers

• The different types of representation available

• Your rights as a consumer

• Your responsibilities during a real estate transaction

Ontario law requires that this guide be shared with you before you sign a representation agreement or provide confidential information to a real estate professional.

You can view the official RECO Guide here:
https://www.reco.on.ca/consumers/understanding-real-estate-representation

Why Does the RECO Guide Matter?

Real estate transactions involve:

• Significant financial commitments

• Legally binding contracts

• Negotiations that can materially impact your net worth

The RECO Guide ensures you:

• Know who represents you

• Understand who owes you loyalty and confidentiality

• Are aware of potential conflicts of interest

• Can make informed decisions before committing

In short, it exists to protect you from costly misunderstandings.

Key Concepts Explained in Plain Language

1. Representation Options

The guide outlines three main working relationships:

Client Relationship

• The agent fully represents you

• Owes you loyalty, confidentiality, and advocacy

• Negotiates in your best interest

Self-Representation

• You represent yourself

• The agent involved represents the other party

• You are responsible for your own decisions and strategy

Multiple Representation

• One brokerage represents both buyer and seller

• Allowed only with written consent

• Comes with limits on advocacy and negotiation

Understanding these options early allows you to choose the level of protection and guidance that is right for you.

2. Confidential Information

The guide clearly defines what must be protected, including:

• Your price flexibility

• Motivation to buy or sell

• Financial or personal details

Once confidential information is shared, it cannot be taken back. The RECO Guide ensures you understand when confidentiality begins and who is legally required to protect it.

3. Commission Transparency

RECO requires full transparency around compensation:

• How real estate professionals are paid

• When commissions are earned

• How fees are disclosed

This eliminates surprises and reinforces informed consent.

When Will You Review the RECO Guide?

You will typically receive the guide:

• Before signing a buyer or seller representation agreement

• Before sharing confidential information

• Early in your relationship with a real estate professional

This timing is intentional. Clarity must come before commitment.

What the RECO Guide Is Not

It is important to understand:

• It is not a contract

• It does not obligate you to work with anyone

• It does not replace legal advice

The guide is educational. It sets the foundation for informed decisions.

Why This Matters More Than Ever

In competitive markets, decisions are often made quickly. Speed without clarity can be expensive.

Understanding the RECO Guide helps you:

• Avoid conflicts of interest

• Know exactly who is working for you

• Protect your financial position

• Enter negotiations with confidence

Knowledge is leverage, especially in real estate.

Simon’s Final Word

One of my priorities as a real estate professional is education. I believe buyers and sellers make better decisions when they understand the process, their options, and how representation works.

That is why I keep the RECO Guide with me at open houses and share it with first-time buyers even when they are just starting to explore. There is no pressure attached. It is simply about giving people the information they need to move forward confidently, whether they work with me now or later.

Real estate moves quickly, but informed decisions last longer.

Simon Royer
RE/MAX Icon Realty