Two different jobs
Incorporating a company and drafting a Personal Real Estate Corporation are not the same piece of work. The first is routine and your lawyer does it well. The second means writing the articles against Ontario Regulation 536/20, clause by clause, so the protections a PREC depends on are actually on the page rather than assumed.
A PREC incorporated from a general template is usually a perfectly valid corporation. The question this page is about is narrower and easier to overlook: whether the articles say the specific things a PREC status rests on, or whether they are silent on them.
Why it is easy to miss
Nothing about a template-drafted PREC looks wrong. The certificate arrives, the corporation exists, the brokerage pays it, and the accounts are opened. Silence in the articles is not visible from any of that. It only shows up when someone reads the articles against the regulation, which is normally the moment a problem is already being dealt with rather than avoided.
How to check yours
The PREC Articles Health Check is free. You upload or paste your articles of incorporation and it reads them against both regimes that govern a PREC: the RECO PREC conditions in Ontario Regulation 536/20, and the Income Tax Act rules, administered by the Canada Revenue Agency, that decide how the corporation is taxed.
You get a Red, Yellow or Green rating for each regime, with every requirement named and what was actually found in your text. There are no forms to fill in.
The check runs in your browser and does not upload your document. Your articles are saved only if you choose to: as an encrypted copy kept for 90 days, if you ask for that when your report is emailed, or with your answers if you sign in to amend them.
What it is, and what it is not
The Health Check produces a drafting-quality hint from the article text you provide. It is a starting point to bring to a qualified lawyer and CPA, not a legal finding that your corporation qualifies as a PREC, and not tax advice. Always have a professional review before you rely on or file anything.
It does not replace your lawyer or your accountant, and it is not meant to. It is meant to make the conversation with them shorter and sharper: you arrive knowing where your articles stand and which protections need attention, instead of paying for that discovery from scratch.
Capital Toolkit is an automated service. It provides general information, not legal, tax or accounting advice, and it does not replace your own lawyer or accountant. Have a qualified professional review any document before you rely on it, sign it or file it.
If you want the full analysis
The rating and the list of which protections are present or missing cost nothing. What is paid for is the PREC Deep Dive at $100 CAD: the full clause-by-clause written analysis of what is wrong, why it matters, and what to raise with your lawyer. HST is added at checkout.