Registrant guide to discipline/appeal hearings

Legal disclaimer

This guide provides an overview of RECO's discipline and appeals process, but it's not a substitute for the official Rules of Practice - the Trust in Real Estate Services Act 2022 (TRESA) - or legal advice. RECO cannot provide legal advice or refer you to a lawyer. If you need legal assistance, the Law Society of Ontario's Referral Service may be of assistance; visit www.lso.ca for more information.

Please note: For conduct occurring prior to December 1, 2023, only matters involving an alleged failure to comply with the REBBA Code of Ethics regulation can be referred to the discipline committee for a hearing. For conduct occurring on or after December 1, 2023, any alleged contravention of TRESA or its regulations may be referred for a hearing before the discipline committee.

Code of Ethics

Since the introduction of TRESA in December 2023, matters can be referred to the discipline Committee under the Act and the regulations.The Code of Ethics is one of the regulations under the Act. The Code of Ethics is more than just consumer protection; it's a valuable tool for registrants as well. By providing clear guidelines for conduct, it fosters public trust in the real estate industry, making consumers more likely to work with you.

Complaint

If a formal complaint has been made against you and referred for disciplinary action, you will receive an allegation statement. This statement will also be filed with the discipline committee and your Broker of Record will be informed.

Noting that a discipline hearing can significantly affect a registrant’s reputation, it's crucial to thoroughly understand the hearing process.

What is a discipline hearing?

A discipline hearing is a formal process, used for serious cases of professional misconduct where your case will be presented in front of a discipline panel. Here's what you need to know:

1. RECO, as the prosecutor, will be represented by a lawyer or paralegal.
2. You have the right to be represented by a lawyer, paralegal, or an agent (if they meet the Law Society Act requirements). You may also choose to represent yourself. Please note, RECO will not pay for your legal representation.
3. The hearing will not be delayed if you fail to obtain legal representation.
4. The discipline panel consists of three or more members of the discipline committee, including both real estate professionals and members of the public. They have experience with the hearing process and a strong understanding of real estate practices and the legislation.
5. Hearings are generally open to the public, but the discipline panel can close all or part of a hearing in certain circumstances.
6. Hearings are typically scheduled several months in advance.

Preparing for your hearing: what you need to know

You will be contacted in writing by RECO and given at least 45 days’ notice before you are asked to appear. You will also be provided with key information, including:

• An allegation statement outlining the charges against you
• Copies of all documents and other evidence that RECO intends to use
• The names of any witnesses or experts RECO plans to call, and what they are expected to say, and
• Any expert reports that RECO will present.

If you want to present your own evidence (in the form of documents or witnesses, including experts), you must disclose it to every other party and file it with the hearings coordinator at least 15 days before the hearing (see section 11 of O. Reg. 367/22: DISCIPLINE COMMITTEE). Failure to do so may result in the evidence being ruled inadmissible.

Pre-Hearing Conference

Within ten days of being notified that your complaint has been referred to the discipline committee, you (or any other party) can request a pre-hearing conference. This is a private meeting where you can explore options to resolve the issue before the actual hearing. Everyone involved must participate unless the discipline committee directs otherwise.

All discussions are without prejudice, meaning nothing said can be used against you later in the hearing. The goal is to see if the case can be settled, simplify the issues, agree on facts, or find other ways to resolve the matter.

What to Expect on Hearing Day?

• Attendance is essential; if you fail to attend, the hearing may proceed without you and a decision will be made in your absence.
• After witness testimonies and the presentation of evidence, the discipline panel will meet privately to deliberate.
• If the discipline panel finds you in violation of the legislation, the penalties could include required educational courses, fines (up to $50,000 for salespersons and brokers and $100,000 for brokerages), conditions placed on your registration, or even suspension or revocation of your registration.
• You will receive the discipline panel's decision and the reasons for it in writing. A copy will also be sent to the complainant. All hearings are open to the public unless a panel determines otherwise.

Who participates in a hearing?

Knowing who's who at the hearing can help you understand the process. Here's a breakdown of the key people you'll see:

• Discipline panel: This is a group of three or more people from the larger discipline committee. They listen to the evidence (including your testimony) and decide if a registrant has contravened a provision of the legislation. The panel will include both public and registrant members of the discipline committee.
• Independent panel counsel: This is an independent legal counsel who gives neutral legal advice to the discipline panel. They're not on RECO's side or the agent's side – they just help the panel understand the legal matters.
• Counsel/representative for RECO: This is a lawyer or paralegal who represents RECO at the hearing.
• Registrant: This is the real estate salesperson, broker, or brokerage who is responding to the complaint filed against them. The registrant can also referred to as the ‘respondent.’
• Counsel/representative for the registrant: The registrant can have a lawyer, paralegal, or agent represent them at the hearing. They can also choose to represent themselves.
• Hearings coordinator: This person is there to help the hearing run smoothly. They monitor the recording equipment, keep track of all the documents, and provide support to the discipline panel.

Your right to appeal

You have the right to appeal any decision or penalty imposed by the discipline panel to the Ontario Licence Appeal Tribunal within 30 days of the release of the decision.

RECO will publish the decision, including any penalties, on its website for at least 60 months.

Glossary

• The Act: The Trust in Real Estate Services Act, 2002 (TRESA) and its regulations, formerly called the  Real Estate and Business Brokers Act, 2002 (REBBA). RECO administers the law on behalf of the provincial government.
• Adjournment: Postponing proceedings or a hearing by a panel.
• Allegation statement: A statement outlining the specific allegations and the legislative sections you are alleged to have violated.
• Code of Ethics: The ethical standards outlined in Ontario Regulation O. Reg. 365/22 of the Act designed to protect consumers and promote professionalism.
• Decision: The discipline panel's ruling at the end of a hearing.
• Discipline Panel: A panel of three or more members of the discipline committee.
• Disclosure: Providing all relevant documents (evidence, expert reports) to all parties before the hearing.
• Evidence: Documents, witness testimony, expert testimony, expert reports, statements, recordings etc. that are tendered in a hearing and that are used by the discipline panel to make a decision.
• Notice: of hearing: Official notification of a hearing and the scheduled hearing dates issued by the hearings coordinator.
• Parties: The registrant, or registrants, who are the subject of the proceeding, RECO and any other person added as a party of the discipline committee
• Pre-hearing: An opportunity for an informal conference for parties to try to settle factual disputes, narrow issues, and foster dialogue to reach a possible settlement.
• Proceeding: Any step in the discipline process.
• Submissions: Presenting arguments on law, policy, or facts about a case.
• Transcript: A written record of everything said during a hearing. You can request a transcript for a fee.