Five realtor associations representing about 90,000 of Ontario’s roughly 100,000 realtors are calling on the provincial government to reform the Real Estate Council of Ontario (RECO) after the government said Thursday it would intervene in an “extensive review” of the real estate watchdog.
“This process must deliver meaningful reforms, including Ombudsperson oversight, stronger accountability measures, and enhanced enforcement tools to safeguard consumer deposits and restore public confidence,” said the joint statement released Friday by Toronto Regional Real Estate Board, Cornerstone, Ottawa Real Estate Board, OnePoint, and Central Lakes Association of Realtors.
While details of the government’s intervention are expected in the form of a ministerial letter next week, the groups said they welcome a full review of RECO’s governance and practices.
When reached by the Star Friday, RECO said it “will fully support the Minister’s efforts” and “is taking every action to strengthen consumer protection and restore public confidence.”
It added that it will continue with steps it had previously announced, including a third-party, independent audit by the law firm Dentons with the support of an accounting firm.
Additionally, RECO said it’s working with the insurer to expedite claims for consumer deposits and agent commissions, and “the insurer has worked to prioritize and the first consumer deposit claims, which are being paid out today.”
The real estate regulator has come under fire in recent weeks over its handling of the iPro Realty scandal.
In May, a RECO investigation determined the co-founders of the iPro Realty brokerage “illegally disbursed” $10.5 million from its consumer deposit and commission trust accounts. However, RECO waited three months to notify the public and its own industry and facilitated the transfer of 2,400 iPro employees in 17 offices to iCloud Realty, a new brokerage that took over many of iPro’s assets. RECO also cut a deal with the brokerage that would see its co-founders not face charges or fines.
RECO’s iPro investigation “undermines” the regulator’s consumer protection mandate and “damages the reputation” of thousands of hardworking and honest realtors, the realtor groups’ statement said.
Bringing RECO under the oversight of Ombudsman Ontario would not be unprecedented, it noted, as real estate regulators in B.C. and Quebec already fall under the jurisdiction of their provincial ombudspersons.
“This recommendation reflects our associations’ commitment to protecting consumers, enhancing professionalism, and supporting continuous improvements within Ontario’s real estate regulatory system.”
The groups added they are committed to working with the province to ensure the review results in a “transparent, accountable, and effective regulator who will protect consumers and support the integrity of the real estate profession.”
With files from Diana Zlomislic and Clarrie Feinstein
