Ontario’s five largest Realtor associations have banded together in support of the Ford government’s decision to intervene in the review of the Real Estate Council of Ontario (RECO) following the iPro Realty Ltd. investigation.
“Our associations welcome a full review of RECO’s governance and practices. 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 associations in a combined statement.
Toronto Regional Real Estate Board president Elechia Barry-Sproule, Cornerstone Association of Realtors chair Julie Sergie, Ottawa Real Estate Board president Paul Czan, OnePoint Association of Realtors president Bonnie Looby, and Central Lakes Association of Realtors president Christine Riley signed the statement.
“Recent events, including the iPro Realty investigation, have highlighted the need for enhanced transparency and accountability at Ontario’s real estate regulator,” reads the statement. “The handling of trust account breaches by iPro Realty is a serious matter that speaks directly to consumer confidence and professional integrity.”
The statement said the Pro Realty investigation “undermines RECO’s consumer protection mandate,” and damages the reputation of thousands of hardworking and honest Realtors.
The associations note that Ontario would not be the first province to bring its real estate regulator under the Ombudsman’s oversight, noting that counterparts in B.C. and Quebec already fall under the jurisdiction of their respective provincial Ombudspersons.
RECO’s board announced Monday it had ordered an immediate freeze on iPro accounts, to “safeguard funds and secure business operations,” it said, while an independent audit into the matter by legal firm Dentons Canada LLP will begin immediately, according to a statement.
Demands for action are getting louder after Ontario’s real estate regulator said last week that iPro Realty co-founders Rui Alves and Fedele Colucci will not face charges, despite $10.5 million going missing from the brokerage’s trust accounts. The total amount missing is now $8 million, RECO has said.
OREA’s response
Earlier this week, Ontario Real Estate Association interim CEO Sonia Richards also called for RECO to be made subject to Ombudsman oversight, echoing a point made in OREA’s 2024 whitepaper, Continuing to Raise the Bar for Real Estate in Ontario.
Richards said the sudden closure of iPro Realty “has shown the far-reaching impact that regulatory decisions can have on Ontario’s buyers, sellers, real estate professionals, and overall consumer confidence in the real estate market.”
“Last week’s subsequent leadership changes at (RECO) further demonstrate the importance of transparent and independent oversight of government bodies in fostering a trustworthy and durable consumer protection framework for Ontario families,” said Richards.