RECO / TRESA · Business & conduct
The restriction on business authorises trading in real estate or acting as a brokerage
What the rule requires
A PREC is not registered under TRESA. It must not trade in real estate or carry on business as a brokerage; it may only provide the controlling shareholder's services to their employing brokerage.
Authority: O. Reg. 536/20, s. 3 ¶¶2 and 4 (business and brokerage)
What goes wrong
The restriction is drafted as a carve-out ("cannot carry on a business other than …"), and what it AUTHORISES includes operating as a real estate agent or broker. A PREC is not registered under TRESA and must not trade in real estate or act as a brokerage. It may only provide the controlling shareholder's services to their employing brokerage. Read literally, the articles license the conduct the regulation forbids.
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