You can see it in the systems we log into, the rules they embed and the rituals that follow. It governs without ever being named; a living document we inherit but no longer author. 

Over the past several years, new technologies, leadership shifts and branding debates have revealed just how far that constitution has drifted from its original intent.  

What follows isn’t a history – it’s an excavation and, I hope, the beginning of a rewrite. 

I. The illusion of control 

Every morning, Realtors log into the systems that decide what they can say, how they can say it and how visible their work will be. 

We call it technology, but it’s governance by another name; a rulebook written in code instead of bylaws. 

This is about power, and how quietly it moved out of reach. 

Each field, validation rule, and search filter enforces policy in ways few members ever see. 

We think we’re entering data; we’re actually performing compliance. 

The platforms we use don’t just reflect the profession; they define it, and somewhere between the first upload and the latest system migration, control slipped. 

Organized real estate still speaks the language of democracy, but its constitution has already been rewritten inside the software. 

II. From representation to ritual 

Boards were never meant to be monuments. They were tools built by practitioners to solve shared problems. But over time, the procedure became the product. 

Today, most boards operate less like professional communities and more like small parliaments. Quorums small enough to fit in a classroom can amend bylaws for tens of thousands of members. Proxy stacking concentrates control. Consultations are staged after decisions are made. 

This isn’t malice; it’s muscle memory. Every cycle inherits the same playbook: stability first, scrutiny second. “Continuity” becomes “competence.” “Dissent” becomes “disloyalty.” 

And soon, the process itself becomes proof of purpose. 

When power becomes insulated, accountability fades. What follows is a ritual in the absence of reform. 

The ritual looks busy: new logos, new task forces, new vendor contracts. 

But motion isn’t evolution.

Outside, the species looks unchanged.  

III. From bylaw to backend 

Governance didn’t die; it migrated into software. 

Every time a listing rejects an input because a field doesn’t exist, that’s regulation. 

Every time Realtor.ca decides which properties rise to the top of a search, that’s policy. 

Every automatic warning, every hard stop, every required field, every “invalid value” message is a digital descendant of a forgotten committee motion. 

But unlike those committees, code doesn’t interpret intent. It enforces outcomes. 

When a provincial prop-tech collective expanded its MLS infrastructure through subscription agreements in 2024 (a shift that brought most Ontario boards into a unified subscription framework), decisions about listing standards and data structure effectively moved from volunteer committees to contract clauses. 

And when its leadership quietly changed earlier this year through an internal governance realignment, oversight of Ontario’s core MLS infrastructure shifted again. 

No member referendum. No public notice. Just a new slate, appointed internally.   

That’s not scandal. It’s system design. 

Governance didn’t fail; it changed medium.   

Realtors still carry the liability for every misstep the system allows or forbids. 

If an input error misrepresents a property, the board doesn’t face the client. The agent does. The brokerage shoulders the risk. Yet neither has meaningful authority over the infrastructure that defines compliance. 

That’s the quiet inversion of power: the governed held accountable for rules they no longer write. 

IV. Paying to be governed

Membership used to buy representation. Now it buys access. 

Realtors pay dues to boards. Boards pay vendors to manage the systems. Vendors, in turn, enforce compliance frameworks that determine how Realtors work. 

It’s a closed loop of authority without ownership. 

At the national level, the same pattern repeats. CREA licenses the trademarks and operates Realtor.ca; the public face of the profession. 

Yet the listings feeding it come from local systems governed by independent contracts, each with its own structure and rules. 

The result is a federation of dependencies: members finance everything but control nothing. 

Sold as modernization, this consolidation resembles enclosure more than efficiency. 

When Realtor.ca was restructured into a for-profit subsidiary, the move was practical but symbolic. 

It marked the moment the profession’s most visible asset became a product. 

Belonging turned into a business model and representation became a side effect. 

We stopped belonging to the system when the system learned to bill us for belonging. 

V. The relevance test: What is a board for? 

If access to data is all we value, then the question isn’t whether boards are broken; it’s whether they’re still necessary at all. 

Only one board in Ontario owns the technology. The rest are tenants, licensing the systems they claim to govern. 

They administer dues, hold meetings, and issue statements, but their primary role is custodial: collecting money on behalf of platforms they don’t control. 

As a couple of writers have recently debated, the Realtor identity itself is under review. 

Some call the name baggage, tied to NAR’s scandals and American dysfunction. 

Others defend it as a badge of honour, a symbol of professionalism and trust hard-won over decades. 

I would argue that both sides miss the point. The word isn’t the issue. The structure beneath it is. 

If governance and accountability collapse, even the most sacred title loses meaning. 

The brand can survive scandal; it cannot survive structural irrelevance. 

The Ontario Real Estate Association (OREA)-led call for Ombudsman oversight of the Real Estate Council of Ontario (RECO) exposed that hollowness. 

It sounded bold, but misunderstood the law it invoked. 

The Ombudsman Act excludes self-regulating professions. 

If boards truly want to end self-regulation, they should say so. 

If they don’t, then the campaign misled the very members who fund it. 

Realtors didn’t connect with that letter because it wasn’t written for them. 

It was written to look responsive. It was a performance of relevance, not an act of it. 

VI. The ROI of representation 

If advocacy is the last defense of organized real estate’s layered structure, then it’s fair to ask: what’s the return? 

Every Realtor measures productivity and cost-per-lead.  

But the organizations that preach professionalism can’t quantify their own value. 

OREA’s own disclosures show millions spent annually on advocacy and communications, yet no member-facing metrics explain outcomes or savings. 

In business, unmeasured value isn’t value. It’s overhead. 

The loss of the OREA College exposed that vacuum. 

Education once gave OREA purpose: a tangible service tied to competence. 

When that mandate moved to the regulator, what remained was advocacy without measurement. 

And advocacy without measurement is faith, not strategy. 

Would we, knowing what we know now, voluntarily build a system that compels every Realtor to join an association, fund mandatory insurance and underwrite lobbying whose outcomes we can’t audit? 

If this system didn’t already exist, could you convince anyone to invent it? 

If we built a system today, we would not build this system. 

VII. The case for a controlled burn 

That doesn’t mean demolition. It means renewal. 

The first boards were grassroots cooperatives: small, voluntary networks built on trust and reciprocity. 

They created order before law. Their purpose was cooperation, not control. 

Over time, that cooperative impulse hardened into hierarchy. 

What began as a network of peers became a lattice of dues, committees and closed sessions. 

We now call that professionalism, but is it? 

The future doesn’t need to abolish boards; it needs to release them. 

As one industry commentator recently wrote, even Microsoft now behaves like a startup, forced by AI to relearn how to innovate. 

Real estate could do the same, not by chasing disruption but by rediscovering ownership. 

Innovation without consent isn’t transformation. 

Sunsetting legacy structures isn’t destruction; it’s hygiene. 

A controlled burn clears what it is that protects structure over service. 

The replacement need not be ideological. 

Imagine a platform cooperative: a Realtor-owned, technology-driven utility where brokerages and agents hold real stakes. 

Policy would be ratified by digital referendum. 

Vendor contracts would expire automatically unless renewed by member vote. 

Data standards and governance would be transparent by design. 

Boards that survived such a transformation wouldn’t have to defend their relevance. 

They have already proven it. 

VIII. The constitutional moment 

Every profession has a constitution: an unwritten agreement about who decides what. 

Ours has been rewritten without consent. 

Control migrated from members to boards, from boards to associations, and from associations to vendors. 

Elections continue, meetings occur, minutes are approved, but democracy isn’t procedure. 

It’s consent. 

When governance moves into code, consent becomes a checkbox. 

When advocacy drifts into performance, representation becomes branding. 

When boards mistake data for trust, the profession loses both.   

This isn’t a technical crisis, it’s constitutional.  

The choice ahead is stark but simple:   

1. Continue the drift and let governance consolidate in the hands of those who own the tools. Or;  
2. Reclaim authorship and rebuild from the ground up, guided by the same cooperative instinct that once defined the Realtor. 

If we built organized real estate today, we wouldn’t replicate the layers. 

We’d design a single, accountable, member-governed institution: transparent, data-competent and morally literate. 

IX. The path back to purpose 

Boards were never meant to be monuments. They were instruments built to serve those who work in the field, not to rule over them. 

We still need cooperation. We still need shared data, clear standards and public trust. 

But those don’t require the architecture we’ve inherited. 

They require will, imagination and consent.   

If organized real estate still believes it exists to put members first, it must prove it. Not with statements, but with structure. 

If access is all that defines membership, the public will soon ask what defines the Realtor. 

Our constitution isn’t in Ottawa or Toronto. It lives in the collective consent of those who practice. 

The system won’t rewrite itself. 

Brandon Reay

Brandon Reay brings a multifaceted background in real estate practice, policy, and governance. Before stepping into brokerage leadership, Brandon spent several years in organized real estate, contributing to strategic initiatives and advocacy efforts with CREA and OREA, and various Chambers of Commerce. His work has included shaping housing policy, supporting regulatory reform, and improving REALTOR® engagement across the country.

Brandon’s approach blends hands-on brokerage experience with a systems-level understanding of how policy, market forces, and professional standards intersect. He is known for helping professionals navigate evolving market conditions and advocating for higher standards within the industry. In addition to his leadership role at RE/MAX Hallmark Realty Group, he remains an active REALTOR® focused on agent development, business strategy, and client service.

Brandon regularly contributes commentary on market trends to media outlets and industry publications and has served as a spokesperson on housing issues in Ottawa. He is also a frequent speaker at real estate events, offering data-driven insights on brokerage strategy, professionalism, and the future of the industry.

He holds a Master of Business Administration from the Sprott School of Business. Brandon lives in Ottawa, where he remains closely involved in local policy discussions on housing affordability and real estate governance.

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QUICK HITS

• Thirteen per cent of Canadian adults are working towards their first residential property purchase within the next two years; a majority of them plan to buy in the next 12 to 24 months
• More than half (53 per cent) of first-time buyers plan to put at least 20 per cent down on their purchase; while 39 per cent will not
• Forty one per cent of first-time buyers say they will receive financial assistance from family or friends, while 51 per cent will not
• Single-family detached properties remain the most popular housing type among first-time buyers
• Finding a home that is move-in ready is the most important non-price related factor for first-time buyers

Many Canadians in the market for their first home have a clear picture of what they want, and falling interest rates, rising inventory and softening prices are making it more achievable. 

Still, a recent survey from Royal LePage, conducted by research firm Burson, finds that many aren’t ready to pull the trigger just yet.

The survey found that 13 per cent of Canadian adults intend to purchase their first home within the next two years. Of those, the majority (82 per cent) are targeting a purchase timeline between 12 and 24 months, rather than the next year.

More than half (51 per cent) of first-time buyers say they are researching affordable neighbourhoods, while 49 per cent are browsing online listings. Nineteen per cent have started attending in-person showings, and another 19 per cent have contacted a real estate agent.

“Interest rates are trending lower and prices have stabilized or even softened in some markets, creating favourable conditions for long-awaited entry into home ownership,” said Phil Soper, president and CEO of Royal LePage. “Yet, hesitation remains.”

Economic uncertainty and the potential for further rate cuts are encouraging many would-be buyers to delay their entry. According to Royal LePage, 36 per cent of agents report increased first-time buyer activity this year, while 25 per cent say activity levels are unchanged.

Home prices have remained relatively flat. In Q2 2025, the national aggregate price increased 0.3 per cent year-over-year to $826,400, while quarter-over-quarter, prices fell 0.4 per cent, according to the most recent Royal LePage Home Price Update.

More than half (53 per cent) intend to make a down payment of 20 per cent or more, while 39 per cent plan to purchase with less than 20 per cent down and secure mortgage insurance.

Detached dream

Detached homes remain the preferred choice for 49 per cent of first-time buyers, despite higher prices. 

Lifestyle preferences also play a role: 42 per cent of first-time buyers say they will choose a neighbourhood based on lifestyle, even if it means a longer commute. Move-in ready homes, outdoor space and proximity to amenities remain top priorities.

To afford their first home, 60 per cent of buyers are seeking properties in more affordable areas, 40 per cent are downsizing expectations, and 39 per cent are cutting discretionary spending. Nearly 30 per cent plan to use retirement or investment savings to fund their purchase.

Family support, budget pressures shape buying decisions

Family financial support remains a key factor. While 51 per cent of prospective buyers say they will not receive any assistance, 41 per cent say they will.

Among those receiving help, 29 per cent will get a lump sum with no repayment required, 27 per cent will receive a loan, 28 per cent will have a co-signer, and 26 per cent will get help covering monthly payments.

“The gap between those who receive financial assistance and those who do not highlights the deep affordability challenges in today’s market,” said Soper.

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Climate-resilient homes vary by location and the most prevalent risks there. For example, in Calgary, a climate-resilient home may include an impact-resistant roof to protect against hail that is becoming more common in the area. In Toronto, a climate-resilient home may feature protections against flooding, which has worsened in the city in recent years.

Ryan Ness, the research director at the Canadian Climate Institute, told Real Estate Magazine that in the next 10 years, hundreds of thousands of new homes may be built in areas that are high risk for wildfires and floods, adding an average of $2 billion in damages from such perils. 

Ness said that both small towns and larger cities, such as those in the Okanagan in B.C., are at risk of wildfires, and major flooding risks are present in some of Canada’s biggest cities, including Winnipeg, where the Red River poses risks of overflowing. In Montreal and Toronto, old storm sewers can’t handle intense flash rainstorms, causing basements to flood. Plus, more and more development is being pushed close to forested areas prone to fires, according to Ness.

“As climate change continues to increase the risk to housing from floods, wildfires, and other climate-related extreme events, there needs to be more investment in reducing risk,” he said. “Whether it’s at the building level and making homes more resilient, or making sure we don’t build in risky places.”

Consumers not racing to adopt resilient features

Glenn McGillivray, the managing director of the Institute for Catastrophic Loss Reduction, agrees with Ness that homes should be more resilient. 

His organization looks into a wide variety of climate risks to homes, from severe winds and hail to snow and ice storms, and has recommended steps builders or homeowners can take to better protect their buildings.

For example, they recommend an impact-resistant roof and avoiding vinyl siding for homes susceptible to hail, such as in the Calgary area. However, McGillivray said that interest is low among both homeowners and builders in making their homes more resilient.

“People are not tripping over themselves trying to be the first to do this,” he said. “It’s really problematic. Not enough people are taking action to make their homes more resilient.”

Part of the reason may be the cost, even though McGillivray says it can save money in the long run. He said putting class 4 shingles on a roof, which are the most resistant to hail, would cost about an extra $1,500 to $2,000.

Weighing the ROI

McGillivray’s institute has found that homes that are more climate resilient sell for more on the resale market and can benefit from a lower insurance rate.

He noted that it is always cheaper to make a home more resilient during initial construction than to retrofit it, but said that there’s a healthy number of homebuilders who are not entirely on board with taking such steps over concerns that their prices won’t be competitive. 

Relying on insurance to cover the costs of damage may also not be the answer, McGillivray said. Some in Calgary have not been able to get insurance due to the risk of hail, he said.

One factor that could increase home resiliency is the federal government updating its building codes. McGillivray said the next iteration of the Canadian National Building Code is due in 2030 and will include some resiliency features for the first time ever, after a working group was struck to look into it. It will take time for the features to filter down to provincial building codes, though, according to McGillivray.

John Dempster is a living example of how motivation in making homes more climate resilient can be minimal, even after experiencing a close call.

The Re/Max real estate agent based in Drayton Valley, Alta, had to evacuate due to a wildfire in the summer of 2023. Luckily, his home did not get damaged, but even having a wildfire coming in hot hasn’t motivated him to make any changes to his home. He said that if he were asked about doing so a week after the wildfire, his answer might be different because the fear of the natural disaster would still be fresh. But now it isn’t front of mind, and he isn’t alone.

“I’ll be honest, nobody really asks the question,” he said of home resiliency. “Nobody’s going to go upgrade their siding or roof or do a lot of upgrades unless it’s absolutely necessary.”

He said that it is very difficult to get value out of resiliency upgrades compared to the cost of putting them in, and the cost isn’t recouped during resale.

“It’s interesting how time changes and people move on, they’re not as fearful anymore,” he said. “But it’s in the back of their minds for sure.”

Eric Stober

Eric Stober has over 10 years experience as a journalist and writer at publications big and small, including Global News, Toronto Life, Post City Magazine, Greencamp.com, the Toronto Star and The Grid.

The post Extreme weather is worsening, but are Canadians preparing their homes for climate change? appeared first on REM.

The small gain comes as the number of transactions on the resale market continued to rise for the fifth consecutive month, noted senior economist Daren King.

He said the “very soft” market conditions in Ontario tightened somewhat with the recent spike in activity, allowing prices to rise during the month in Toronto, Hamilton, and Ottawa-Gatineau. 

Prices remain down from 2024

Despite this growth in August, the index still remains 4.6 per cent below its December level, with declines over this period of 7.9 per cent in Toronto, 7.4 per cent in Hamilton, and 1.5 per cent in Ottawa-Gatineau. 

Market conditions also eased significantly in British Columbia, with Vancouver and Victoria posting declines of 7.1 per cent and 0.4 per cent, respectively. 

“Against the backdrop of the current trade dispute, market resilience has depended on differing levels of affordability,” said King. “Indeed, the markets with the highest affordability challenges saw the sharpest declines, as the financial risk of such a large real estate transaction was amplified by economic uncertainty.”

What’s next?

King said it is still too early to say whether the positive trend will continue in the months ahead, even with Bank of Canada rate cuts. The Bank of Canada lowered its key interest rate by 25 basis points to 2.5 per cent on Wednesday, marking its first cut since March.

“Continuing uncertainty, moderating population growth, the risk of persistently high long-term interest rates, and a potentially further deterioration in the labour market will continue to weigh on the housing market,” said King.

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CMHC’s monthly report released Tuesday says the seasonally adjusted annual rate of housing starts came in at 245,791 units in August, down from 293,537 in July.

In a statement, CMHC chief economist Kevin Hughes called the slowdown “notable,” as it’s well below the six-month trend. However, a sustained decline would be consistent with forecasts, he said.

“It is worth noting that current housing starts levels are generally reflective of decisions made when interest rates were receding and investor confidence was higher than it is today,” said Hughes. 

In urban markets, the decline was driven by the multi-family sector, where starts plunged by nearly 50,000 units, compared to July, to 183,000 units. Meanwhile, single-detached starts dipped 1,800 to 40,000 units.

The only province to see a rise in housing starts last month was Manitoba.

A note from TD Bank economist Rishi Sondhi said stable building permits point to a healthy pipeline of housing starts in the near term. 

“However, we expect some moderation in homebuilding in 2026 amid slowing population growth and falling rents,” said Sondhi. “Meanwhile, past declines in pre-construction home sales should keep a lid on construction in the ownership market.”  

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The online poll of 2,000 Canadians, conducted by Pollara Strategic Insights for Mortgage Professionals Canada and the Mortgage and Title Insurance Industry Association of Canada, found that 78 per cent of respondents agree mortgage fraud creates an unfair playing field. Another 64 per cent said it drives up home prices.

Growing concern about fraud

More than half of Canadians — 58 per cent — said they are concerned about mortgage fraud, a figure that rises to 65 per cent among people who plan to buy within the next five years.

Nearly two-thirds, or 65 per cent, said the Canada Revenue Agency should play a role in prevention. And 72 per cent support allowing lenders and mortgage brokers to verify income directly with the tax agency, a view consistent across political lines.

“These findings confirm what mortgage professionals see on the ground every day – Canadians want a fairer, more transparent system that protects honest homebuyers,” said Lauren van den Berg, president and CEO of Mortgage Professionals Canada. “Mortgage fraud not only undermines trust, it drives up housing costs for everyone. Income verification through the CRA is a practical solution that will strengthen trust in the housing market and help ensure everyone plays by the same rules.”

Ontario leads in concern

The survey also pointed to regional differences, with Ontario residents the most concerned. Eight in 10 Ontarians said mortgage fraud creates an unfair market for those who follow the rules.

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That gap is not just about capital or regulation. It’s also about perspective. Canadian housing policy is being made largely without the insight of those closest to its day-to-day failures: the real estate brokers and agents navigating this market in real time.

These professionals – licensed, regulated, and embedded in communities across the country – are not part of advisory panels or roundtables. They are not routinely consulted when legislation is drafted or programs are rolled out. But they are the first to see where housing policy is succeeding, stalling, or simply missing the mark.

That needs to change.

“Real estate professionals are the connective tissue between buyers and sellers, developers and planners, regulation and behaviour.”

Recent federal and provincial housing strategies are built around one shared premise: build more, faster. The federal government has committed to doubling home construction to around 500,000 starts per year by the early 2030s. Ontario has pledged to add 1.5 million homes by 2031, which still will not meet demand. British Columbia has implemented province-wide zoning reforms legalizing up to six units on most single-family lots. Municipalities are being pushed to meet supply targets or risk losing federal funding.

These are consequential efforts. But many are faltering on delivery.

Ontario housing starts fell 25 per cent in the first half of 2025. Developers across the country are delaying or cancelling projects due to high financing costs, labour shortages and permitting delays. CMHC recently projected that unless conditions shift dramatically, Canada will fall short of its 2030 housing target by 1.3 million homes.

Much of the public discussion focuses on macro factors: inflation, interest rates, tax policy, and immigration levels. But missing from the conversation is the input of those working inside the system every day. Real estate professionals are the connective tissue between buyers and sellers, developers and planners, regulation and behaviour. Their absence from policymaking leaves strategies vulnerable to blind spots and misfires.

Blind bidding debate

Consider the federal proposal to ban blind bidding. It was introduced as a solution to affordability, based on the assumption that bidding wars were artificially inflating prices. But brokers and agents in competitive markets had long observed that blind bidding was a symptom, not a cause, of price escalation. Scarcity, not secrecy, was driving the frenzy.

Studies have since confirmed what agents already knew: jurisdictions with open bidding formats experience similar, sometimes sharper, price increases in hot markets. Ontario’s recent move to allow (but not require) open bidding has seen almost no uptake among sellers. Agents could have predicted that, too: when listings are scarce, transparency does little to change outcomes.

This is just one example. Brokers across Canada are navigating the real consequences of housing policy. They are hearing from buyers who can’t qualify under current stress test rules, builders stymied by slow approvals, seniors unable to downsize because of a lack of local options, and newcomers struggling to find a foothold in overheated rental markets.

Their insight could help shape better policy, but too often, it is left out entirely.

Boots on the ground perspective

There are more than 160,000 licensed Realtors in Canada, many of them operating through franchised brokerages that serve specific communities but also track trends nationally. They see the ripple effects of tax policy, financing rules and regulatory changes not in theory, but in practice; through listing behaviour, client financing challenges, and transaction timelines.

These are not anecdotal inputs. They are early signals of how policy is landing in the real world.

When interest rates rise, brokers don’t just see a decline in demand; they see where deals fall apart, who gets priced out, and what types of housing are sitting longer on the market. When zoning changes are made, they track whether sellers are adjusting expectations and whether buyers are ready to act. When affordability programs launch, they see who qualifies, who falls short… and why.

Real estate agents are not just intermediaries. They are interpreters of policy, friction, and behaviour, and are essential to making the system work.

‘What’s missing is the voice of the front lines’

Housing policy cannot succeed through mandates alone. Execution matters. So does feedback. Governments at all levels should formalize consultation mechanisms with front-line real estate agents,  not just with industry associations, but with active brokers and agents across regions and market segments.

The federal government’s proposed national housing roundtable is a step in the right direction. But it must include representation from the front lines, the people facilitating transactions, fielding client concerns, and tracking policy consequences in real time. Provinces and municipalities should do the same when implementing zoning reform, development charges or buyer protection measures.

This is not about giving industry players veto power. It is about designing better policy with more complete information, and avoiding the lag between drafting and delivery.

If governments do not course correct now, they risk continuing to build policy that looks strong on paper but breaks on contact with the market.

Canada’s housing goals are ambitious, and rightly so. But success won’t be determined in press releases or legislative chambers. It will be measured in permits issued, homes built, and families housed.

Real estate professionals don’t set those goals. But they do see, earlier than most, what’s working and what’s not. If governments want policy to succeed, they need to tap that insight, not after the fact, but from the outset.

There is no shortage of task forces or reports in Canadian housing policy. What’s missing is the voice of the front lines; the brokers and agents navigating the realities policymakers are trying to solve.

If governments are serious about fixing housing in this country, they can’t afford to keep building strategy in a vacuum. If we keep excluding the people closest to the system, we will keep building failure into it. It is time to bring real estate professionals into the room. And not just to listen. To lead.

Paul Abbott

Paul Abbott is the National Vice-President of Franchise Development at Coldwell Banker Canada, where he leads the company’s growth strategy and supports the expansion of its national brokerage network. With a background in franchising, marketing, and operations across multiple sectors, he brings a strategic lens to real estate development and partnerships. Paul works closely with broker-owners across the country to identify opportunities, navigate the franchise lifecycle, and build long-term value within the Coldwell Banker Canada system.

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These incidents have not only shaken consumer confidence but also exposed critical weaknesses in the regulatory oversight meant to protect the public. As millions of dollars are at stake and trust is eroded, industry leaders emphasize that the damage extends beyond the individuals involved, threatening the integrity of the entire profession.

For many Canadians, buying or selling a home remains one of the most significant financial decisions of their lives, and that process depends fundamentally on trust in Realtors.

What happened

iPro Realty, with 2,400 agents and 17 locations, closed down in mid-August over questions about $10.5 million going missing from the brokerage’s trust accounts. Demands for action grew after Ontario’s real estate regulator the Real Estate Council of Ontario (RECO) said that iPro Realty co-founders Rui Alves and Fedele Colucci would not face charges.

The Ontario Provincial Police have since announced that it is launching an investigation into iPro.

The total amount missing is now $8 million, RECO has said. And last week, the Ontario government said it was intervening with a review of RECO.

Details still unfolding on alleged Calgary Ponzi scheme 

In May, Re/Max Canada dropped its affiliation to Re/Max Real Estate (Central) in Calgary amid allegations surrounding a multi-million-dollar Ponzi scheme run by a former agent. 

The Real Estate Council of Alberta (RECA) completed its disciplinary process for former Realtor Eric Drinkwater. RECA said he admitted to serious breaches, and an independent hearing panel has already found him guilty of conduct deserving of sanction. RECA demonstrated to the panel why a permanent ban is appropriate given the conduct, and it awaits the panel’s final decision on sanctioning. 

RECA hearings for David Lem (broker) and Pat Hare (associate and brokerage owner) are slated for October.

‘Everybody has a part to play’

Janice Myers, CEO of the Canadian Real Estate Association, said when trust in the industry is broken, it doesn’t just impact the individuals directly involved; it threatens the reputation of the entire profession.

“It impacts the entire ecosystem that is designed to ensure situations like this don’t happen,” she says.

“In Canada, the Realtor Code represents the highest standard of professional conduct, and boards and associations were founded to set and uphold those standards of professionalism and ethics. In many provinces, they were actually the ones who pushed for the regulatory oversight we see today.”

She said the vast majority of Realtors embody these values, but when misconduct such as what happened at iPro becomes public, people rightfully have questions about trust and transparency.

She says trust is the cornerstone of real estate. Clients need confidence that their Realtor is acting with integrity, while in turn, Realtors trust their clients to be transparent and realistic. It’s this mutual trust that really makes these successful transactions possible.

“What we want is a highly professional, ethical individual, trained and acting with the utmost integrity, working with consumers. We are all aligned, and government is aligned on that, too,” adds Myers.

“Everybody has a part to play, with the backstop of government and the act that governs Realtors being extremely important, as well as the Realtor Code that CREA has. All of those work together to instill that trust.”

The final backdrop, she said, is government ensuring the legislation is up to date, allowing regulatory authorities to act swiftly and take necessary steps in situations like iPro, “where public trust has been broken and millions of dollars have been obviously misdirected.”

‘RECO has failed’: Crawford

Industry insiders widely agree that the root of these scandals lies in regulatory failures. 

A spokesperson for Ontario’s Minister of Public and Business Service Delivery and Procurement, Stephen Crawford, said in an email: “As the province’s real estate regulator, RECO has a duty to protect consumers and uphold professional standards in Ontario’s real estate sector. In its handling of the iPro Realty case, the largest case of fraud in Ontario’s real estate history, RECO failed to deliver on (its) core mandate.

“As a result of this mishandling, the Minister will step in to oversee a third-party review of RECO to ensure the process meets professional standards, reflects industry expectations, and restores public trust in Ontario’s real estate regulation.”

In response to an interview request, the RECO media team responded: “We are not providing interviews at this time. Please refer to the public statements available on our website.”

Regulators ‘failing’ on their mandate: AREA CEO

Brad Mitchell, CEO of the Alberta Real Estate Association, says a vast majority of members serve the public in a very professional, courteous, and competent manner. But, like every industry, “we have a few in our industry that don’t do that, and it’s very unfortunate.”

The Re/Max Central and iPro Realty cases aren’t small slip-ups, said Mitchell, they’re glaring examples of regulators failing at the part of their mandate that matters most: protecting the public.

When that doesn’t happen, said Mitchell, consumers pay the price, and trust in the industry is shaken.

He said it’s on both government and industry to get regulation right.

“We’ve had a ton of problems with our regulatory body here in Alberta, and they’ve had the same issues in Ontario,” said Mitchell.

Mitchell says some regulators cozy up to the industry, instead of doing their jobs with independence, and that’s where they’ve “lost their way.”

He said governments need to “strip regulatory bodies down to bare bones” and rebuild.

Mitchell argued that the real estate industry needs proper regulation, since most members want to keep out bad actors. He noted that even people arrested for serious crimes have remained licensed as Realtors, while regulators focus on trivial matters like sign details or measurement rules.

In his view, regulators neglect serious misconduct and instead waste effort on minor technicalities.

RECA responds

In an emailed statement, RECA said the assertion that it has not acted is false. RECA said it prioritized the Drinkwater investigation and has already completed its disciplinary process. 

“A profession’s greatest asset is its reputation. The vast majority of industry professionals act with integrity and care for their clients, and we share the frustration and anger felt when fraud occurs,” it said.

“Alberta has strong protections in place. Consumers can use RECA ProCheck to confirm licences and view disciplinary histories. Each sector has distinct education and licensing requirements, and credentials are public. If someone lacks the proper licence, that’s a red flag.

RECA said its processes and mandate are legislated. They’re also guided by case law and legal precedent. Acting without enough evidence (or outside our authority) would invite lawsuits, taint proceedings, and delay justice. 

“We work tirelessly within the bounds that the Government of Alberta has established to meet our mandate in protecting consumers,” it said.

“Albertans expect fair, transparent processes. Skipping due process goes against that and risks judicial review that could overturn decisions and sanctions and delay justice for victims. RECA’s responsibility is clear: act decisively when evidence exists, and ensure sanctions stand. That’s how we help protect consumers and preserve trust in the profession.”

A government spokesperson for Minister of Service Alberta and Red Tape Reduction Dale Nally said “the Minister’s schedule doesn’t allow for an interview at this time,” and there was no response when asked to provide a statement.

A lesson in choosing a brokerage

Todd Shyiak, executive vice president of CENTURY 21 Canada, said the iPro collapse is a reminder that the industry must reset its standards. Agents must re-examine what they demand from the brokerages with which they choose to affiliate.

“The lesson is clear: choosing a brokerage based on cost alone is short-sighted calculation. Agents must invest in their career and align with brokerages that will show their value through stability, leadership, and the resources required to deliver the best standard of service to clients,” he says.

“The future of Canadian real estate depends on setting — and meeting — higher expectations. Agents must demand it. Clients deserve it. And our industry’s reputation requires it.”

The recent scandals take away confidence in the industry. They take away confidence in the oversight of the industry. 

“Oversight means mandatory regular audits and demanding brokers send in monthly balances of their trust accounts to show they’re copacetic.

“The oversight in our industry has failed time and time again to address one of the core problems in my mind. These brokers they charge nothing, they do nothing, they offer nothing and allow agents to wallow.”

Faith in the process

Alan Tennant, CEO of Calgary Real Estate Board, says it’s always upsetting when to see real estate consumers affected when they shouldn’t be.

“That’s a situation where I think we all know that all of our rules and laws governing real estate need to be fully and effectively enforced. And until we know they haven’t been fully enforced, we have to have some faith in these systems and processes and allow them to unfold,” he says.

“And then, if there’s been a lack in enforcement, then I’m very confident the industry will step up. You know, if I have any concerns about these situations, it’s probably more around the potential for an overreaction. My experience has been that when you get a group of Realtors together in a decision-making role, whether it’s creating rules or managing ethics situations, they always consistently have very high standards and a very low tolerance for noncompliance.

“I think all Realtors need to be concerned about the potential damage to the brand. And they all have a role to play in making sure things are corrected.”

Mario Toneguzzi

Mario Toneguzzi is a contributing writer for REM. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald, covering sports, crime, politics, health, faith, city and breaking news, and business. He now works on his own as a freelance writer for several national publications and consultant in communications and media relations/training. Mario was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list.

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