Real estate agents often mispronounce these words
Real estate terms like ‘registered’ vs ‘licensed’ and ‘under contract’ vs ‘sold conditional’ can confuse agents in Ontario, costing sellers.
Two phrases are tripping up real estate agents in Ontario, and the confusion is costing sellers more than just missed offers. In a profession where every word carries legal weight, the difference between “registered” and “licensed” — and “under contract” versus “sold conditional” — matters more than most agents realize.
Dixie MacDonald, a sales representative with Sotheby’s International Realty Canada who works in Prince Edward County and the Quinte region, has spent years watching colleagues fumble these terms.
The confusion starts with how Ontario regulates its real estate professionals.
Unlike most other provinces and the United States, Ontario doesn’t “license” real estate agents. It “registers” them through the Real Estate Council of Ontario, or RECO, under the Trust in Real Estate Services Act.
“Licensed” is the term used for doctors, lawyers, engineers, and pilots in Ontario. “Registered” is what applies to real estate salespersons, along with psychotherapists, dietitians, and social workers.
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The second problem phrase is “under contract.”
In the United States, that term signals a property is off the market once an offer is accepted. In Ontario, the same phrase appears on listings but means something entirely different — the deal is still conditional, and either party can walk away.
The real problem is practical.
When an agent marks a listing as “under contract” but the deal still has conditions attached — financing, inspection, or a status certificate — potential backup buyers scroll right past it. The seller loses a chance at a better offer or a fallback option.
“Using ‘under contract’ in Ontario is, I would argue, a failure of fiduciary duty,” she wrote. “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.”
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The correct Canadian terms are straightforward.
“Sold conditional” means the accepted offer still has conditions that need to be met. “Sold firm” means everything is clear and the deal is binding. “Conditional on financing” or “conditional on inspection” tells buyers exactly what’s still outstanding.
MacDonald thinks agents should take pride in their own regulatory process rather than imitate American television content.
She believes the answer should be clear.
The two issues — registration versus licensing, and contract language versus conditional language — share a common thread. Both terms shape how consumers understand the market, and both terms can cost sellers real money when used incorrectly.
