For incorporated Ontario realtors
A Personal Real Estate Corporation only keeps its status while its articles and its conduct stay inside Ontario Regulation 536/20. The free PREC Articles Health Check reads your articles of incorporation and rates — Red, Yellow, or Green — how well they are drafted to protect that status, clause by clause. A hint to take to your lawyer and CPA, not legal or tax advice.
Since 2020, an Ontario real estate salesperson or broker has been able to earn their trade income through a Personal Real Estate Corporation. It can open room for tax planning your accountant will walk you through, but the corporation only qualifies while it keeps meeting the conditions in the Trust in Real Estate Services Act, 2002 and Ontario Regulation 536/20.
Those conditions are specific: a single director who is the registrant, one registered controlling shareholder holding all the voting shares, non-voting shares limited to permitted family, no arrangement that strips the director's powers, and a corporation that never holds itself out as a brokerage. Miss one and the exemption can quietly stop applying — often discovered only when it matters most.
The gap most people never check is the paperwork itself: whether the articles of incorporation actually lock those protections in, or merely leave compliance resting on how the company happens to behave. That is exactly what the Health Check surfaces.
The free tool
Upload or paste your articles of incorporation. The PREC Articles Health Check does the rest — no questionnaire, no account — and gives you a plain-language read on where your articles stand.
PREC Articles Health Check
The tool reads your articles against a 19-clause profile of the core conditions and protective guardrails that keep a PREC eligible under O. Reg. 536/20. It rates how well the articles are drafted to protect that status, flags every protection that is present or missing, and can assemble draft language for the gaps. Anything it cannot find counts against the rating.
Green
The articles lock in the core conditions and add strong guardrails.
Yellow
Some protections are present, but gaps leave compliance resting on conduct.
Red
The articles impose little guardrail; compliance would rest almost entirely on conduct.
Not legal or tax advice. The Health Check produces a drafting-quality hint from the article text you provide. It is a starting point for a qualified lawyer and CPA, not a finding that your corporation qualifies as a PREC. Have a professional review before you rely on or file anything.
The path
Paste the text or upload the file. No questionnaire, no account — the tool reads the articles directly.
A Red, Yellow, or Green rating, plus a clause-by-clause list of which of the 19 protections your articles lock in and which are missing.
For any missing protection, the tool assembles model clause language you can bring to counsel — no guessing at what the articles should say.
Fix the gaps by amending your existing articles, or incorporate a new PREC with the protections built in. Reviewed by a professional before filing.
Who it's for
You already run a PREC and want to know it is actually protected — not just assume the incorporation service got the articles right. Start with a free rating.
You are weighing whether to incorporate. Understand the conditions first, confirm the tax case with your accountant, then incorporate with the protections built in.
Advising real estate clients on incorporation and compliance. Use the Health Check to triage a client's articles in minutes and focus your time on the judgment calls.
What it costs
Note: the Health Check reads the drafting of your articles; it does not certify that your corporation is a compliant PREC today, which also depends on how the company is owned and run. It does not replace advice from your own lawyer and CPA.
Two minutes in the browser, no account required. Get your articles rating, then decide what to bring to your lawyer and CPA.
Drafting-quality hints only — not legal or tax advice. Have a qualified professional review before you rely on or file anything.
