Under the Trust in Real Estate Services Act, 2023 (TRESA, 2023), when is a registrant permitted to trade in real estate on their own behalf or for an entity in which they have a direct or indirect interest, without requiring specific written agreements outlining the trade with their own client?

Question: Under the Trust in Real Estate Services Act, 2023 (TRESA, 2023), when is a registrant permitted to trade in real estate on their own behalf or for an entity in which they have a direct or indirect interest, without requiring specific written agreements outlining the trade with their own client?

Answer options:

• When the trade involves a commercial property and the registrant has disclosed their interest to the other party via a standard form.
• When the trade is with a sophisticated investor who explicitly waives any requirement for such disclosure.
• Never. A registrant is always required to make specific written disclosures and obtain consent when trading on their own behalf or for an entity they control, if representing another party in the transaction. ✅ When the registrant is acting solely as a principal in the transaction and is not representing any other party or providing real estate services to them.

Correct answer: When the registrant is acting solely as a principal in the transaction and is not representing any other party or providing real estate services to them.

Explanation: TRESA significantly clarifies the rules around registrants trading for themselves. While stringent disclosure and consent requirements apply when a registrant is also providing real estate services to another party in such a trade, these requirements do not apply when the registrant is acting purely as a principal and not providing services to the other party.