ExamPassCode of Ethics (O. Reg. 365/22) explained for Ontario real estate
The Code of Ethics is Ontario Regulation 365/22 under the Trust in Real Estate Services Act, 2002 (TRESA). It sets the conduct standards that every registrant (every brokerage, broker and salesperson) must meet: integrity and honesty with everyone, the best interests of clients, conscientious and competent service, confidentiality, and the handling of conflicts of interest. It is what people usually mean by "the RECO Code of Ethics", though it is a provincial regulation.
The Code has 16 working sections, and most exam scenarios come down to one test: which duty does this registrant owe to this person? For the wider statute, see our TRESA exam prep guide.
Who does the Code of Ethics apply to?
Every registrant. TRESA defines a registrant as a brokerage, broker or salesperson registered under the Act, so the Code binds the firm and each individual. On top of that, the brokerage must make sure every broker and salesperson it employs complies with the Code, and the broker of record must make sure the brokerage complies (s. 16).
What does each section of the Code of Ethics require?
The table paraphrases each section, with an original example of how a question might frame it.
| Section | What it requires | Exam-style example |
|---|---|---|
| s. 1 | Courtesy, honesty, good faith and integrity toward every person the registrant deals with, not only clients | A seller's salesperson answers a self-represented buyer truthfully |
| s. 2 | No conduct that would reasonably be seen as disgraceful, dishonourable or unprofessional, or likely to bring the sector into disrepute | A salesperson insults a buyer online after a failed deal |
| s. 3 | Never counsel, advise or knowingly help anyone break the Act, the regulations or another law that applies to the trade or the business | A salesperson suggests the buyer overstate their income on a mortgage application |
| s. 4 | Never engage in or be a party to fraud | A broker helps prepare a fake second agreement showing a higher price |
| s. 5 | Make best efforts to keep every representation accurate and not misleading; never engage in misrepresentation or any unethical practice | An ad says "walk to the GO station" when the station is a 25-minute drive |
| s. 6 | Never treat anyone in a way that would contravene the Human Rights Code | A salesperson refuses to show homes to a buyer because of the buyer's ethnic origin |
| s. 7 | No intimidating, coercive or abusive conduct, undue pressure or harassment | A salesperson tells an elderly seller she will "lose everything" unless she signs tonight |
| s. 8 (1) | A registrant who represents a client must promote and protect the client's best interests | The buyer's salesperson points out a cheaper comparable sale |
| s. 8 (2) | If the registrant believes a client's ability to understand or decide may be impaired, make reasonable efforts to ensure the client understands the information and the foreseeable consequences | A confused seller gets extra explanation before signing |
| s. 9 (1) | Conscientious, courteous and responsive service to clients, with reasonable knowledge, skill, judgment and competence | A salesperson ignores a client's calls during a conditional period |
| s. 9 (2) | Reasonable knowledge, skill, judgment and competence in any opinion, advice, assistance or information given to anyone, subject to s. 10 | A careless, wrong answer to a caller about deposits |
| s. 10 | For a self-represented party: no services, opinions or advice, and no encouraging them to rely on the registrant's knowledge, skill or judgment | A self-represented buyer asks the listing salesperson, "What should I offer?" The salesperson cannot answer |
| s. 11 | Advise a person to get services elsewhere when the registrant lacks the competence or legal authority; never discourage them from seeking that service | Asked if a basement unit is legal, the salesperson suggests a lawyer |
| s. 12 | Never disclose a client's confidential information to a third party without the client's written consent, unless the law authorizes or requires it | A listing salesperson tells a buyer the seller "would take $20,000 less" |
| s. 13 | Before providing or continuing services despite a conflict of interest: disclose it, advise independent professional advice, take all reasonable steps to ensure the client demonstrates a reasonable understanding, and get written consent | See the second scenario below |
| s. 14 | If the registrant knows or ought to know a person is another registrant's client, communicate with them about the trade only through that registrant, unless that registrant consents in writing | A buyer's salesperson phones the seller directly to "save time" |
| s. 15 | Never obstruct the administration of the Act, including obstructing anyone from making a complaint to the registrar or inducing a person to withdraw one | A settlement requiring a client to drop a complaint |
| s. 16 | The brokerage ensures its brokers and salespersons comply; the broker of record ensures the brokerage complies | A broker of record ignores reports of misleading ads |
On s. 15: mediation and settlement talks are fine, but no settlement may require dropping or not making a complaint.
Which duties are owed to everyone, to clients and to self-represented parties?
| Owed to | Sections | What it means |
|---|---|---|
| Every person | ss. 1, 5, 6, 7, 9 (2), 11 | Honest, accurate, courteous, competent dealings with anyone, client or not |
| Clients of other registrants | s. 14 | Communicate only through their registrant unless that registrant consents in writing |
| Clients only | ss. 8, 9 (1), 12, 13 | Best interests, quality service, confidentiality and conflict rules belong to the client relationship |
| Self-represented parties | s. 10, plus the duties owed to every person | Honesty and courtesy, but no services, opinions or advice |
| The public and the regulator | ss. 2, 3, 4, 15, 16 | Professional conduct, no fraud or counselling breaches, no obstruction, supervision |
The trap is s. 9 (2). Competence in information applies to anyone, but it is expressly subject to s. 10. So a salesperson can give a self-represented party accurate factual information, such as the listed price or the closing date in the agreement, but cannot cross into advice or opinion. A self-represented party is simply a party to the trade who is not a client (O. Reg. 567/05, s. 1 (5)). See self-represented parties under TRESA and client vs self-represented party for the full picture.
Scenario 1: the self-represented buyer who wants advice
Odette Morin lists her bungalow in Peterborough with Kawartha Crest Realty. Salesperson Ravi Bhatt represents Odette. A buyer, Jun Takeda, has no brokerage and contacts Ravi directly.
- Before Ravi's brokerage gives Jun any assistance, it must give him the information O. Reg. 567/05, s. 13.1 (1) requires, in the registrar's form: that the brokerage represents a client in the trade, the risks of receiving assistance from it, the type of assistance it may provide, and a recommendation to seek independent professional advice.
- Jun asks, "Is $612,000 a fair price?" Ravi cannot give an opinion (s. 10). He can explain that he represents the seller and suggest that Jun get his own advice.
- Jun asks whether the roof was replaced. Ravi answers accurately from what he knows and does not guess (ss. 1 and 5).
- Jun asks, "How low would she go?" Ravi says nothing about Odette's position. Her bottom line is her confidential information (s. 12), and promoting her interests is his job (s. 8 (1)).
Every answer is honest; none is advice.
Scenario 2: the conflict nobody mentioned
Salesperson Hana Kowalczyk represents first-time buyers Marcus and Tiffany Ellery in Sudbury. She recommends a mortgage broker, who happens to be her husband and pays her household a share of his fee. Hana's interest in the referral may conflict with her clients' interest in the best mortgage.
Before continuing, Hana must (s. 13):
- Disclose the relationship to the Ellerys.
- Advise them to get independent professional advice about it.
- Take all reasonable steps to make sure they have demonstrated a reasonable understanding of the conflict.
- Get their written consent to her continuing despite it.
Because her husband's fee is a financial benefit to a related person, she must also make the financial-benefit disclosure required by O. Reg. 567/05, s. 23.1: a description of the benefit (direct or indirect, its estimated value and any conditions) and of the relationship involved.
An option saying "disclose it verbally and carry on" is wrong: s. 13 has four steps, consent must be in writing, and the s. 23.1 disclosure is a separate duty.
Frequently asked questions
What is O. Reg. 365/22? It is the Code of Ethics, a regulation under the Trust in Real Estate Services Act, 2002. It sets the conduct standards for every Ontario brokerage, broker and salesperson.
Is the RECO Code of Ethics the same as O. Reg. 365/22? Yes. "RECO Code of Ethics" is the everyday name, but the Code itself is a provincial regulation made under TRESA.
Can a salesperson give a self-represented party any information? Yes, accurate and honest information. What they cannot give is services, opinions or advice, or encouragement to rely on their judgment (s. 10).
Does disclosing a conflict of interest satisfy the Code? No. Section 13 also requires advising independent professional advice, taking all reasonable steps to ensure the client has demonstrated a reasonable understanding, and getting the client's written consent.
Who is responsible if a salesperson breaks the Code? The salesperson is responsible for their own conduct. Under s. 16 the brokerage must also ensure its brokers and salespersons comply, and the broker of record must ensure the brokerage complies, so a failure of supervision can be a breach of its own.
How does ExamPass help you practice the Code of Ethics?
ExamPass gives you hundreds of original scenario questions on duties to clients, self-represented parties and everyone else, with every option explained. The Study notes, Mock Exam, Drill Wrong Answers and AI Tutor help you find the traps you still fall for. Start with free Course 1 practice questions or free Course 2 practice questions, and read brokerage vs designated representation next. See courses and pricing
This guide is a study aid and a plain-language summary, not legal advice. The current text of TRESA and its regulations is always the final authority. ExamPass is an independent study aid. It is not affiliated with or endorsed by RECO, Meazure Learning, Humber Polytechnic, Career College Group, Fleming College, Algonquin College, or any other education provider. Provider and exam names are used only to identify the courses students are preparing for.