Compliance guide for real estate professionals
Real estate agents in Ontario must comply with the Trust in Real Estate Services Act, 2002 (TRESA), which governs sales and rentals. TRESA, which replaced the Real Estate and Business Brokers Act, 2002 (REBBA) on December 1, 2023, is enforced by the Real Estate Council of Ontario (RECO).
Under the TRESA, all real estate agents must comply with the Code of Ethics (Ontario Regulation 365/22), which sets ethical standards for professional conduct. Section 5 of the Code requires agents to ensure that any property representations are accurate and not misleading.
In response to a 2024 complaint about AI-generated property images, RECO provided the following statement to the Globe and Mail (April 5, 2024): "RECO advises that buyers and their agents should always show due diligence by viewing properties for verification. Where some images have been enhanced to give a buyer a sense of the art of the possible with the space, then that should be specified in the listing by the brokerage or agent."
RECO's Discipline Committee enforces TRESA and the Code of Ethics through complaint investigations and disciplinary hearings. The Discipline Committee has authority to suspend, revoke, or apply conditions to an agent's registration, and can impose fines and require completion of educational courses.
The PropTx MLS® Rules (Article 5.01) prohibit digitally altered images that do not accurately depict the property. While some practitioners interpret this to allow virtual staging with proper disclosure, the rule's plain language may prohibit virtual staging entirely. Verify current enforcement practices with your board.
Local real estate boards may have additional specific requirements—always check your local board's rules. For example, some boards require virtually staged photos to be paired with unstaged photos of the same room, or require modified images to be clearly labeled to avoid misleading buyers.
Violations of TRESA or the Code of Ethics can result in disciplinary action by RECO's Discipline Committee, including fines of up to $50,000 for salespersons and brokers and up to $100,000 for brokerages, mandatory educational courses, suspension or revocation of registration, and conditions imposed on registration. Agents may also face civil litigation for false or misleading advertising statements.
Under TRESA, misleading advertising can result in RECO disciplinary action. Watermark each virtually staged image with text like 'Virtually Staged' or 'Digital Staging' positioned where it remains visible across all platforms—your local MLS, Realtor.ca, and third-party sites.
Ontario has many local real estate boards with varying photo requirements. For example, TRREB (Greater Toronto Area) requires original unstaged photos alongside staged versions. Ottawa, London, Hamilton, and other boards may have different specific requirements. Always confirm with your board.
RECO's Code of Ethics requires accurate representation across all Ontario markets. Digitally altering walls, windows, flooring, countertops, or other permanent features would constitute misrepresentation under Section 5 of the Code of Ethics and should be avoided. Staging should be limited to furniture, décor, and soft furnishings that buyers understand aren't included.
Add explicit disclosure text to your MLS listing description: 'Some photos in this listing have been virtually staged to showcase the home's potential. Original photos are included in the gallery.' Written disclosure complements visual labelling and applies province-wide.
RECO regulates advertising across all platforms. Include virtual staging disclosure in every place your listing appears: MLS, Realtor.ca, your brokerage website, social media posts, and printed materials. Consistency across all channels reduces the risk of misleading advertising complaints.
RECO advises that enhanced images should be specified in listings, and buyers should be able to verify property condition. Include original, unedited photographs in your MLS gallery alongside any virtually staged versions. This transparency aligns with RECO's guidance and helps buyers make informed decisions.
"Images have been virtually staged to illustrate the property's potential. Furniture and decor shown are digitally rendered and are not included with the property. Please refer to the original photographs for an accurate representation of the property's current condition."
"This home features virtual staging to help you visualize its potential. The furniture shown is digitally added and not physically present. Schedule a showing to see the actual space. #VirtualStaging #RealEstate"
"This listing includes virtually staged photographs. Digital furniture and decor have been added to help you visualize the space. These items are not present in the physical property. Original photographs are available upon request."
"VIRTUALLY STAGED – Furniture shown is digitally rendered"
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