The Ontario government will assume control of the Real Estate Council of Ontario (RECO), Minister Stephen Crawford has announced.
In a letter addressed to RECO Chair Katie Steinfeld and CEO Brenda Buchanan, Crawford said Friday morning that he has appointed veteran communications and government relations professional Jean Lepine as the administrator of RECO, effective Monday.
“Over the past 3 months, I’ve heard from consumers, boards, realtors & brokers who’ve lost confidence in Ontario’s real estate regulator,” Crawford said in a post on LinkedIn.
The decision comes following Crawford’s review of a scathing audit by Dentons Canada LLP of RECO’s handling of the $10-million iPro Realty Ltd. fraud scandal.
“Ultimately, the Dentons final report raises concerns about RECO’s ability to restore public confidence in the real estate services sector and to protect consumers during one of the largest purchases of their lives,” said Crawford’s letter.
The announcement comes as hundreds of affected agents, some of whom are out six figures in commissions, prepare to march on Queen’s Park in Toronto.
More to come.
Courtney Zwicker is a digital reporter and associate editor for REM. Based in Atlantic Canada, she has over a decade of experience covering daily business news.