Real Estate Council of Ontario (RECO) has announced that Mississauga-based iPro Realty Ltd., one of the province’s largest brokerages, will permanently close all 17 of its locations effective Aug. 19.
The closure follows the discovery of a $10 million shortfall in the company’s consumer deposit and commission trust accounts during a scheduled inspection. The amount has since declined to less than $8 million, RECO confirmed.
RECO’s registrar Joseph Richer told Real Estate Magazine that the council has not yet confirmed the number of consumers or agents affected.
RECO says it has finalized an undertaking with iPro to wind down operations. The agreement allows for the completion of current transactions under close oversight by RECO, a qualified broker of record, and a chartered public accountant.
iPro regarded itself as one of the fastest-growing brokerages in Ontario, and one of the province’s largest by agent count.
The business was co-founded by Rui Alves and Fedele Colucci. For 23 years, iPro operated as a franchised brand before going independent in 2010.
Upon acquiring three locations and 600 offices in 2019, Alves said they were moving toward an industry trend of becoming a “mega-brokerage,” which “offers competitive rates and improved services to salespeople.”
Impact on agents
The shutdown will affect approximately 2,400 agents working out of iPro’s 17 branches, including offices in Mississauga, Toronto, Orangeville, Georgetown, Milton, North York, Bradford, Baysville, Burlington, Woodbridge, Scarborough, Brampton, Brantford, and Pickering.
To help agents maintain their RECO registration, iPro has arranged for iCloud Realty Ltd. to assume all branch locations. Agents wishing to transfer to iCloud must notify iPro by noon on Aug. 18 to facilitate a no-interruption transfer.
Agents opting for other brokerages must initiate the change through MyWeb before Aug. 19, with a $25 transfer fee payable by either the new brokerage or the agent. Those who fail to transfer by the deadline will have their RECO registration terminated.
Details about iCloud
“RECO can confirm that iCloud is registered as a brokerage with RECO, with different owners from iPro, and has purchased some of iPro’s assets and assumed some of its leases,” said Richer. “There has been no transfer of ownership from iPro to iCloud.”
A search of RECO’s registrants shows iCloud’s broker of record is Christopher Regimbal, who was a broker/manager with iPro.
Guidance for active transactions
When iPro closes, all active representation agreements with the brokerage will become void.
Agents must discuss with their clients whether to sign new agreements under their new brokerage or allow clients to choose another representative.
Brokerages that owe commissions to iPro are instructed to disburse funds as usual during the wind-up period.
Agents who have earned commissions not yet paid by iPro are urged to submit a Commission Protection claim through RECO’s claims adjuster.