The Commission Trust Agreement is an important document that outlines the terms of the trust between the real estate agent and their client. The purpose of this document is to ensure that both parties are aware of their obligations, duties, and responsibilities when it comes to handling the client`s funds.

As a licensed real estate agent in Ontario, it is your duty to ensure that you have a signed Commission Trust Agreement (CTA) with your clients as per the requirements of the Ontario Real Estate Association (OREA). The CTA is a legal document that explains the terms and conditions under which you`ll hold a client`s deposit while working on a deal.

The CTA is a legally binding agreement that outlines the terms of the trust between the real estate agent and their client. The document is essential because it helps protect both the real estate agent and the client`s interests, and it is a mandatory requirement by the Real Estate Council of Ontario (RECO).

The CTA provides a clear understanding of each party`s role in the transaction. It specifies the details like the amount the client is depositing, the date of deposit, and the terms of payment. The CTA also outlines the conditions under which the deposit will be released and what happens if a deal falls through.

The Commission Trust Agreement is a critical document that protects the client`s funds. It ensures that all their money, including deposits and earnest money, is safe and accounted for. Clients can feel confident that their money is in the hands of a trusted professional who is held accountable by law.

In conclusion, it`s important to remember that the Commission Trust Agreement is mandatory and plays a crucial role in protecting both the real estate agent and the client. It is a legal document that outlines the terms of the trust and helps ensure the safe handling of the client`s funds. Always be sure to have a signed and updated CTA before initiating a transaction with a client.

Commission Trust Agreement Orea

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