How do I become a business broker in Ontario?

To become a business broker in Ontario you register with the Real Estate Council of Ontario (RECO) as a salesperson employed by a brokerage, because Ontario’s Trust in Real Estate Services Act, 2002 (TRESA) counts a business as real estate. The RECO pages cited here do not mention business sales, so the link comes from the Act. This page covers Ontario only. Whether a particular sale needs a registrant is a different question, set out in whether a business broker needs a licence in Canada.

Why the route is real estate registration

TRESA says “real estate” includes leasehold interests and businesses, whether with or without premises, and fixtures, stock-in-trade and goods connected with the operation of a business. Under section 4(1), subject to the exemptions in section 5, a person may not trade in real estate as a salesperson unless registered as a salesperson of a brokerage, and the same rule applies to brokers. RECO’s pages use “agent” as the plain word; the registration category is “salesperson”. None of the sources on this page describes a separate business-broker stream, so the route is real estate registration.

The steps RECO sets out

RECO says real estate is a regulated profession in Ontario and that the Real Estate Salesperson Program is the first step. To register, a person must first complete an education program offered by one of RECO’s designated providers: Algonquin College, Humber Polytechnic, Fleming College or Career College Group. The steps run in this order.

• Meet the eligibility requirements. If past conduct such as a criminal record, charges or discipline history with another regulatory body is a concern, RECO points you to its Registration Policy on applicant criminal history to self-assess.
• Complete the pre-registration phase of the Real Estate Salesperson Program, which RECO says must be done in sequence and within its time limits.
• Find a brokerage that will employ you. RECO says you must be employed by a brokerage to be registered, and section 31(1) of TRESA bars a salesperson from trading on behalf of any brokerage other than the one that employs them.
• Obtain a Criminal Record and Judicial Matters Check, which RECO uses to assess suitability for registration.
• Complete the application for new salesperson registration in MyWeb, RECO’s online portal.
• Join RECO’s professional liability insurance program, which RECO says every salesperson and broker must do, then finish the post-registration phase before your first renewal.

Becoming a broker and checking the register

RECO describes the Real Estate Broker Program as being for active salespersons currently registered with RECO, and it starts with the Broker Qualifying Exam. A seller or buyer can search RECO’s public register for an agent or brokerage and confirm the status shows “registered”. Under section 48, the registrar must make available to the public, in the prescribed form and manner, the names of registrants and other prescribed persons, and other prescribed information about them.