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.
Thank God there is some common sense at our large boards… where is OREA? They have been missing in action on this issue…. Aren’t they supposed to be calling for this kind of action? …. totaly weak and not showing member anger.
Hi Chris, you’ll see at the bottom of this article that OREA made a statement earlier this week.
TRREB youtube channel: “Buying a home is likely the largest single financial decision homebuyers make and that’s why TRREB has fought for higher professional standards and better consumer protection under TRESA.”
Daniel Steinfeld, Director and in-coming President of the Toronto Regional Real Estate Board: “TRESA…is really built upon making sure consumers understand that as an industry we need to not just expect but earn the trust of the consumer…all if not most of the rules are built on transparency, clarity… (Alex Rascanu youtube channel)
Katie Steinfeld, Chairperson RECO: “With 15 years as a broker, brokerage owner and 5 years as a RECO Director, I bring bother governance and leadership in the real world industry insight to the table…Now I’m running for re-election to continue the work ahead. (Her Instagram’s 2025 re-election campaign video)
John DiMichele, CEO, Toronto Regional Real Estate Board: “The Toronto Regional Real Estate Board is applauding Minister Thompson and the provincial government for the successful passage of the Trust in Real Estate Services Act, 2020. This significant effort will help enhance professional standards, create a more fair and efficient business environment, and better protect consumers dealing with those who trade in real estate in Ontario.”
Paul Baron (when) President, TRREB: From day one, TRREB’s work to reform REBBA and eventually introduce TRESA has been focused on raising the bar for the real estate profession in Ontario and providing even better protections to real estate consumers… here’s what TRREB is fighting for under phase three:
[]Creating a Real Estate Council of Ontario (RECO) ombudsperson. RECO is not subject to the same oversight as other self-regulated/managed organizations. “REM Dec. 22,2023
Are we to take it then that all of the bragging about the input for stronger oversight was just mere platitudes? Considering too the commentary within media circles and social media recently, an ombudsman is sorely needed at the board. They might want to take their own advice before pointing fingers.
President-Elect Steinfeld might want to keep the spotlight on the Mrs. for as long as possible — anything to keep eyes off the storm brewing under his watch.
If you needed proof of that before, well…TSHHTF!
The Toronto Star has latched on to this story and is not letting go. Never before have I seen a real estate debacle hit the news cycle every single day and sometimes twice a day likethis one has. Public commentary is also serious and thoughtful, not the usual, hate on agents, rhetoric.
But I’m very puzzled why these boards and associations got into the fray. The 5 board publication subliminally tried to suggest they had no input into TRESA over the 5 years it was in the works except for PRECs and a call for an ombudsman. They started up the bus and headed out of town. meanwhile the tire tracks are all over search engines.
OREA then fled into the bus, put it in reverse and absolutely trounced RECO, laying waste to every director and committee member past and present for those last 5 years. You’d think neither of them they know not the directors they all have in common with RECO. That same OREA Timmy Huhired dak who, as did the Toronto Regional Real Estate Board, made no bones that they were a driving force behind the new legislation and the strengthened protections put in place for the public.
Both missives were issued the very same day the Minister advised Chairperson, Katie Steinfeld that RECO’s investigation into this is out of their hands, fully into Dentons, that he is the guy to whom the lawyers will report and if he doesn’t like what he sees, he’s taking over the whole shebang. Ms. Steinfeld only published her response, not the letter itself.
Tell us, boards and OREA, Is it pure coincidence then that on that same day, 2 weeks after the first disclosure that the boards and RECO finally said something? You have to know that every email, letter and maybe even DM between RECO and you is going to be read, right? That’s going to be one heck of a discovery if it ever gets to court.
I have my doubts about it being coincidence. It’s not like none of the characters on RECO’s board or advisory committees have no connection to the directors on either of the 5 boards or RECO. Is it mr. 2025 president?
I predict come the October report that is going to be made fully public, they’ll all be saying, RECO who? We know them not.
It is said, loyalty has no rewards. I feel for all those directors who are falling under the wheels, even though they are responsible for this whole problem. They cannot well serve two masters – the one they served as directors in a board or association and then the one they served in RECO yet that is exactly how the boards and associations have operated for decades. Promoting their own is found everywhere in the annals of those search engines.
Yes indeed!
The registrar had zero real estate experience and should never had gotten that that position.