On October 1, 2020, the Ontario Government introduced new and amended regulations to the Real Estate and Business Brokers Act, 2002 (REBBA), regarding personal real estate corporations (PRECs) and advertising terms.
Personal Real Estate Corporations (PRECs)
The legislation has been amended to permit a brokerage to pay remuneration owed to a salesperson or broker for trading in real estate to a corporation that meets specific criteria.
The corporation is referred to as a PREC. A PREC is a corporation that a salesperson or broker may establish that is permitted to directly receive from a brokerage remuneration that is earned by the registrant. The use of a PREC may have financial advantages for the salesperson or broker.