Regulation guide, 7 min read
What Is RECO? The Ontario Real Estate Regulator Explained
Every Ontario real estate agent and brokerage is regulated by RECO — the Real Estate Council of Ontario. Most candidates first encounter RECO as a name on the Course 1 syllabus and have no clear picture of what it actually does, why it exists, or what its rules will mean for them in practice. Here is the plain-English version.
RECO in one paragraph
RECO is the not-for-profit corporation Ontario delegated to administer the Trust in Real Estate Services Act, 2002 (TRESA). It registers everyone who trades in Ontario real estate, sets the rules they must follow, investigates complaints from the public, and disciplines agents and brokerages who break the rules. If you work as an Ontario real estate agent, every meaningful interaction you have with the regulatory layer goes through RECO — not the provincial government directly.
Where RECO sits in the structure
People often confuse RECO with three other organizations. Here is who is who:
- RECO — the regulator. Issues licenses, enforces TRESA, handles discipline. Mandatory.
- OREA (Ontario Real Estate Association) — a trade association for member real estate boards. Not a regulator. Optional, though most agents are members through their local board.
- CREA (Canadian Real Estate Association) — the national association that owns and licenses the Realtor® trademark and the MLS system. Membership is required to call yourself a Realtor® and to access most local MLS systems.
- Local real estate boards (TREB/TRREB, OREB, RAHB, etc.) — regional cooperative associations of agents. They run regional MLS, training, and networking. Membership is required to access regional listings.
You can be a fully RECO-licensed salesperson without being a Realtor®. The Realtor® title is a CREA membership thing, not a RECO licensing thing. Most agents end up holding both because clients expect the title and because MLS access is membership-gated.
What RECO actually does
Registers everyone who trades
"Trading" under TRESA includes negotiating, listing, soliciting offers, showing property to a prospective buyer, or basically any act done on behalf of a client or customer in a real estate deal. Anyone doing those activities for compensation must be registered with RECO. The four categories of registration are salesperson, broker, broker of record, and brokerage. Brokerage registration is for the corporate entity itself; the others are for individuals.
Sets and enforces the Code of Ethics
The Code of Ethics is the operational rulebook that RECO interprets and enforces. It covers honesty, fairness, conflict of interest, disclosure obligations, written agreements, advertising standards, deposit handling, and how brokerages must supervise their agents. Most disciplinary cases boil down to a Code of Ethics violation, even when TRESA is the underlying law.
Investigates complaints
Anyone — buyer, seller, tenant, landlord, agent, or brokerage — can file a complaint with RECO. RECO assesses the complaint, opens an investigation if warranted, requests records and evidence from the parties, and decides whether to take disciplinary action. The vast majority of complaints are resolved through informal resolution; a smaller number lead to discipline hearings.
Disciplines agents
RECO can issue warnings, fines, suspensions, and revocations. Discipline is administered by the Discipline Committee under TRESA. Decisions are public and posted on the RECO website. The most severe sanctions usually involve trust account violations (handling client deposit money incorrectly), repeated Code of Ethics breaches, or misrepresentation severe enough to harm a consumer.
Operates MyWeb
MyWeb is RECO's online registrant portal. Once you are registered, you use it to renew your registration every two years, update your brokerage, change your contact information, complete your mandatory continuing education, pay your renewal fees, and access your discipline record. Every Ontario agent has a MyWeb account.
What you actually have to do with RECO
When you first register
- Pass all five Humber pre-registration courses and both simulations.
- Find a brokerage that will sponsor your registration application.
- Apply for RECO registration through MyWeb. The application includes a background check and proof of completion of the pre-registration program.
- Pay the initial registration fee (one-time, ~$200) plus the standard renewal fee (~$590 every two years, prorated on first registration).
- RECO issues your registration. You can now trade.
Every two years
- Renew your registration through MyWeb. Renewal fee is approximately $590.
- Confirm you completed any required continuing education hours since your last renewal.
- Update your insurance status — RECO requires errors-and-omissions insurance, renewed annually.
- Confirm your brokerage of record is still correct.
When you change brokerages
Notify RECO through MyWeb within 5 days of leaving a brokerage. Most agents have their new brokerage submit the registration update on their behalf, but the timing is the agent's responsibility. Trading without active registration at any brokerage is a Code of Ethics violation.
When you complete a transaction
Most filings happen at the brokerage level. Your brokerage must keep complete transaction records, deposit money in a designated trust account, and respond to RECO inspections. As an agent, your obligation is to provide your brokerage with everything it needs to maintain those records and to make sure your written agreements, disclosures, and documents are correct.
What happens if a complaint is filed against you
RECO opens a file and contacts you, typically by email and registered mail. You will be asked for a written response and supporting documents. If the complaint is unfounded, RECO closes the file without action. If there is something to investigate, RECO will request more records and may conduct interviews.
If RECO concludes there has been a violation, the case can be resolved with an informal warning, a settlement (sometimes including a fine), or a referral to the Discipline Committee for a formal hearing. Hearings are public; outcomes are published. Defending a complaint is taken seriously by every brokerage's compliance department, and most brokerages have errors-and-omissions insurance that pays for legal counsel during a RECO investigation.
The takeaway: the day-to-day way you avoid RECO trouble is paperwork. Documents complete, signed, dated, properly executed. Disclosures made in writing where required. Deposit money never in your personal account. Multiple representation acknowledgments collected before showing or making offers. Most discipline cases are paperwork failures, not bad-actor cases.
RECO and TRESA: a quick mapping
TRESA is the law. RECO administers and enforces it. The Code of Ethics is a regulation under TRESA that RECO interprets. When the Course 1 exam tests "regulatory framework," it is really testing this stack: provincial law (TRESA) → administering body (RECO) → operational rules (Code of Ethics) → your daily compliance obligations.
For the law itself, see our TRESA Ontario guide. For exam-prep angles on Course 1's regulatory content, see the course breakdown.
Common questions
Is RECO part of the Ontario government?
No. RECO is a delegated administrative authority — a not-for-profit corporation that the Ontario government has authorized to administer TRESA on its behalf. It is independent of government but accountable to the Ministry of Public and Business Service Delivery.
Where do I check if an agent is licensed?
RECO maintains a public registrant search at reco.on.ca. Anyone can look up an agent or brokerage by name and confirm registration status, current brokerage, and discipline history.
What does RECO charge consumers?
Nothing directly. The public can file complaints, attend hearings, and use the registrant search at no cost. RECO is funded by registrant fees, not consumer fees.
Is the RECO registration the same as the Realtor® designation?
No. RECO registration is mandatory and is what makes your selling activity legal. The Realtor® designation is a CREA-licensed trademark that requires CREA membership through your local board.