There is a general perception that becoming a realtor is as simple as putting together a business card, joining a brokerage and getting down to it. This is the reason that some homeowners think that they can sell their homes themselves: because it’s SO easy.  The reality is that realtors are educated in their field and that education is an ongoing process throughout their careers, to maintain their licensing. That level of education goes up when a realtor wishes to become a broker (who can then employ realtors under them).

Three steps to becoming a realtor in Ontario

Prerequisites — Anyone who wants to become a realtor in Ontario must meet the following standards:

    • Be 18 years of age or older AND
    • Be a resident of Canada ANDHave an Ontario Secondary School Diploma (or equivalent) OR
    • Pass OREA Real Estate College Admissions Test

Details on acceptable diplomas and transferable skills can be found on OREA’s website.

Step 1 — Take mandatory courses through the Real Estate Council of Ontario (RECO) as administered by the Ontario Real Estate Association (until April 2019) and thereafter (beginning July 1) by a consortium and with a program designed by Humber College Institute of Technology and NIIT Canada.

The current courses include:

  1. Real Estate as a Professional Career
  2. Land, Structures and Real Estate Trading
  3. The Real Estate Transaction – General
  4. The Residential Real Estate Transaction
  5. The Commercial Real Estate Transaction
  6. Real Property Law

A candidate has to complete these courses within 18 months.

At this time, the scope of the courses may change with the launch of the new programs through Humber / NIIT and what those look like isn’t a widely known but there are a lot of upsides, according to RECO:

    • Leveraging technology to make e-learning, interactive learning modules and other ‘virtual classroom’ simulations that will give the realtor-in-training a more realistic view of the work that they will be engaging in.
    • These will be followed by in person sessions to see that the candidate has in fact absorbed the material, with true to reality simulations of a real estate transaction.

Step 2 — If all the courses are successfully completed within the 18 month time frame, the candidate should secure employment with a brokerage and through that organization, apply to register at RECO, within 12 months of finishing the required courses. That application process includes the successful completion of a criminal records check. You’ll also have to purchase errors and omissions insurance, through RECO. If that application is approved, the candidate moves on to step 3.

Step 3 — Articling — Following a successful registration with RECO, the candidate will have two years to complete the articling requirements, which is the successful completion of one elective course. With OREA, the options are:

    • Principles of Appraisal
    • Real Estate Investment Analysis
    • Principles of Mortgage Financing
    • Principles of Property Management

After that, you have to renew your registration every two years, with mandatory continuing education requirements having been successfully completed. This ensures that realtors are up to date on current industry requirements and regulations, among other issues.  The mandatory requirements for renewal include an update course (for either residential or commercial real estate sales) and two elective courses. The programs are completed online, so they’re not onerous for a working realtor.

What does all this cost?

The courses currently range from $450 – $600 each, and you also have to consider the fees for registering at RECO, as well as your local board (TREB, for example: Toronto Real Estate Board) and the Canadian association (CREA). In total, you’re looking at around $5,000.

When you join a brokerage, there can be fees associated with that, whether or not you sell anything, and there are the incidental costs such your marketing materials, lawn signs, other office supplies, a car and so on. In addition, you have to remember that while a commission might look great on paper, you’re not getting the entire amount. A percentage will be paid to the brokerage, based on the contract set up with them.

Specialization as a realtor in Ontario

While many realtors elect to work in the area of residential real estate, there are other options and specializations to consider:

    • Commercial real estate — because these are often income generating properties, including apartments (dwellings), office complexes, retail stores and so on, a more in depth knowledge of the commercial market, as well as tax implications, regulations and requirements for purchasing and other areas are important.
    • Appraisers — being a realtor can be a useful first step to becoming an appraiser.
    • Property development — where an individual may want to buy a house to improve it and ‘flip it’, a realtor is in the best position to be part of such a project, because of their in depth knowledge of the markets and the industry as a whole.

It’s clear that becoming a realtor is not just a ‘pie in the sky’ decision: it requires commitment, as well as a willingness to continue learning. The people who choose to do it are interested in making sure that their clients are solidly represented. In a well chosen market and with the right attitude, a realtor is a great career to consider.