The words real estate agents keep getting wrong

Imagine a consumer scrolling through listings and seeing “under contract” on a property they love. They move on. But the deal wasn’t firm — it was sold conditionally, and your client just lost a potential backup offer. That’s not a technicality. That’s a failure of fiduciary duty.

Language matters in real estate, and two terms have come up repeatedly in my work as a real estate educator: are we “registered” or “licensed” as real estate salespersons in Ontario, and is a property “sold conditional” or “under contract”?

Registered or licensed — and why does it matter?

“Registered” and “licensed” are not interchangeable in Ontario real estate, and using the wrong term isn’t just a technicality — it can be a Real Estate Council of Ontario (RECO) issue. “Licensed” is the term used in many other provinces (B.C., Alberta, etc.) and in the United States, which is why it slips into everyday language so easily. But Ontario has always used registration, not licensing, as its legal framework.

Licensed in Ontario: lawyers and paralegals (Law Society of Ontario); physicians and surgeons (College of Physicians and Surgeons of Ontario); nurses (College of Nurses of Ontario); engineers (Professional Engineers Ontario); architects (Ontario Association of Architects); pharmacists (Ontario College of Pharmacists); electricians and plumbers (Ontario College of Trades); teachers (Ontario College of Teachers); mortgage agents and brokers (Financial Services Regulatory Authority of Ontario, or FSRA); insurance agents and brokers (FSRA).

Registered in Ontario: real estate salespersons and brokers (RECO under the Trust in Real Estate Services Act, or TRESA); psychotherapists (College of Registered Psychotherapists of Ontario); dietitians (College of Dietitians of Ontario); massage therapists (College of Massage Therapists of Ontario); registered practical nurses; social workers (Ontario College of Social Workers and Social Service Workers).

Perhaps the most relevant comparison is between mortgage agents and real estate salespersons: mortgage agents are licensed by FSRA, and real estate salespersons are registered by RECO. Both terms ultimately mean the individual is authorized to perform the activities essential to their profession. I’m not a lawyer, and I won’t presume to debate the niceties of the law — but I do care about what works.

In consumers’ minds, the difference between “licensed” and “registered” is subtle but significant. A licence carries more weight because of the professions it’s associated with: doctors, lawyers, engineers, pilots. I believe we should replace “registered” with “licensed” — there is no compelling reason not to. And if the argument against it is that TRESA says “registered,” then let’s change the wording in TRESA.

‘Under contract’ or ‘sold conditional’?

Simply put: “under contract” is American.

In the U.S., once an offer is accepted, the property is “under contract,” meaning both parties are bound by an agreement of purchase and sale. The same is technically true here — but the term is far less understood in Canada than it is south of the border. When salespersons advertise a listing as “under contract,” what they really mean is “sold conditionally.” When a seller accepts an offer in Ontario, the parties have a binding agreement of purchase and sale, but if there are conditions attached — financing, inspection, status certificate — the deal is not firm. Either party can still walk away if conditions aren’t met or waived.

In an informal survey of Ontario consumers (friends and family), I asked what “under contract” would imply if they saw it on an MLS listing. They uniformly said they would infer the property was no longer available. Interestingly, they were more familiar with “under contract” than “sold conditional” — thanks largely to HGTV — which makes the confusion all the more consequential.

The correct Canadian terms: sold conditional (accepted offer with conditions outstanding); sold firm (all conditions waived or met, fully binding); conditional on financing, inspection or status certificate (specifying what still needs to happen). These terms are informative to consumers considering your client’s property. “Under contract” is not.

Using “under contract” in Ontario is, I would argue, a failure of fiduciary duty. In your eagerness to declare a successful outcome, you’ve failed to consider your seller — and failed to protect and promote your client’s best interest by allowing consumers to infer the listing was no longer available. You’ve put self-promotion before client interest.

Ask yourself: do you want to be pale imitators of American HGTV content, or proud proponents of our own regulatory processes?

So — registered or licensed? Under contract or sold conditional? Yes, words matter.

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