What is the difference between a business broker and a realtor?
The Canadian Real Estate Association says REALTOR® is a trademark that identifies real estate professionals who are its members. Whether a business broker needs a real estate registration is a separate question: Ontario counts a business as real estate, and BC’s real estate law reaches some business sales.
REALTOR® is a trademark. This page sets out what the Canadian Real Estate Association (CREA) says about its trademark, then what Ontario and British Columbia say about when a business sale falls under their real estate laws. It covers only those two provinces. It does not say which kind of professional is better. For any other province, check its rules with a lawyer.
What REALTOR® means
CREA says the trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by CREA and identify real estate professionals who are members of CREA. That is a statement about membership in a national association. CREA’s statement does not describe a licence to trade, and it does not say what a member may sell. For the wider licence question, see do business brokers need a licence in Canada.
When a business sale is a real estate trade
In Ontario, TRESA defines “real estate” to include businesses, and s. 4(1) bars trading in real estate unless registered, subject to the exemptions in s. 5. RECO says real estate is a regulated profession in Ontario, so all real estate agents must be registered with it. In British Columbia, BCFSA says that when a business is sold by asset sale, real estate or rental real estate is included in the business assets, and a licensee is facilitating the sale, the Real Estate Services Act applies. It also says that in a share sale with a real estate component, the licensee involved may still be providing real estate services and must do so in compliance with that Act.
When it is not
BCFSA’s consumer guide lists three cases where a business sale is not a real estate transaction: an asset sale with no real estate component, a sale of all of a company’s shares where the business owns or leases no real property, and a sale of only a portion of its shares. In those cases you are not required to have a licensed real estate professional, and if you choose one, their conduct is not governed under the legislation. BCFSA also says some licensees may act as business brokers where no real property is involved.
Related reading
13 pages on the same subject, grouped by topic.
Brokers
- Expert answerHow do I become a business broker in Ontario?
- Expert answerHow do I become a business broker in British Columbia?
- Expert answerDoes a business broker need a licence in Alberta?
- Expert answerDoes a business broker need a licence in Quebec?
- Expert answerHow do I choose a business broker?
- ComparisonBusiness broker vs M&A advisor
- ComparisonUsing a broker vs selling it yourself
- DefinitionListing agreement
- Expert answerWho does what in a business sale — lawyer, accountant, broker?
Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01The Canadian Real Estate Association (CREA)IndustryCREA | Home
- 02Government of OntarioGovernmentTrust in Real Estate Services Act, 2002, S.O. 2002, c. 30, Sched. C
- 03BC Financial Services AuthorityRegulatorSale of a Business
- 04BC Financial Services AuthorityRegulatorConsumer Guide to Sale of a Business
- 05Real Estate Council of Ontario (RECO)RegulatorBecoming a real estate agent
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