In the past, there have been “clients" and "customers." But to clear up any confusion, TRESA phase 2 removed "customer" and introduced "self-represented party." This simply means someone who isn't working with any brokerage. Realtors cannot provide any services or advice to these folks that would rely on the agent’s judgment, knowledge, or experience.

Once TRESA is effective, real estate consumers can choose to be either a client of the brokerage or self-represented.

A "self-represented party" in a real estate transaction now refers to someone who is active in a transaction without being represented by a real estate agent or brokerage. In this situation, they are not a client of any brokerage, and they are handling the real estate transaction on their own, without the direction or services of a realtor.

Self-represented parties will have to assume all the responsibilities of negotiating the terms of the transaction, understanding the legal and financial requirements, rights, and responsibilities, and finishing the necessary paperwork without professional support from a real estate agent. This designation is used to differentiate people who are not represented by a real estate professional during the buying or selling of a property.

Another big change through TRESA is being able to share the content of competing offers.

Under TRESA, sellers have an additional option when it comes to the offer process and the sale of their property. If the seller provides specific written instructions to the brokerage, TRESA permits the sharing of the contents of competing offers with other potential buyers.

It's important to stress that no personal details or any information that could identify the person making the offer can be shared. However, the brokerage is still obligated to disclose the total number of registered offers to all competing buyers.

A seller can decide which content is to be shared (price and conditions, just the price, etc.) so long as the information disclosed is not personal information.

It is important to note that sellers can do this at any time in the process. For this reason, you need to decide if you are comfortable sharing those limited offer details. If you are opposed to a seller disclosing the terms of your offer, the realtor may want to recommend a condition in the offer to this effect.

TRESA phase 2 introduces “designated representation." This means that in a single transaction (buying or selling,) two agents from the same brokerage can represent both the buyer and the seller.

Typically, the brokerage is said to represent the client, so in this instance, a buyer or seller would designate a salesperson (or specific salespeople) from the brokerage to represent them.

It’s optional so there is no need to choose between multiple or designated representation, but it must be decided at the start of each transaction. If it's designated representation, the brokerage remains neutral but keeps an oversees both agents doing their jobs.

Let's walk through an example to help you understand "designated representation" under TRESA phase 2:

Imagine you're selling your house, and you've hired a real estate agent from RE/MAX Service First Realty. In this scenario, RE/MAX Service First Realty has two agents: Nick and Drew.

In a Designated Representation Scenario, you would

1. Agree to Designated Representation: At the beginning of your home sale process, " RE/MAX Service First Realty " informs you that they offer "designated representation." This means they can assign Nick to represent you as the seller and Drew to represent the buyer, who's interested in purchasing your home.

2. Remain Neutral:  Although Nick and Drew work for the same brokerage, they need to remain neutral. Nick is focused on your interests as the seller, while Drew looks out for the buyer's interests.

‍3. Transaction Oversight:  The brokerage, "RE/MAX Service First Realty” oversees both Nick and Drew to ensure they're fulfilling their respective duties and responsibilities properly throughout the entire transaction.

In this way, both the seller and the buyer get dedicated representation within the same brokerage, making sure your interests are looked after.

This new approach helps simplify the process and provides clarity for all parties involved in the real estate transaction while ensuring both buyer and seller receive impartial service.