Province set to install a RECO administrator amid fallout from the iPro Realty case
Ontario’s government has moved to appoint an administrator to take control of the Real Estate Council of Ontario (RECO), marking a rare intervention in the wake of a damning audit into the regulator’s handling of the iPro Realty trust account scandal.
In a letter to RECO’s board, Public and Business Service Delivery Minister Stephen Crawford wrote, “Given the severity of these concerns, I find it appropriate and necessary to consider appointing an administrator to assume control of and responsibility for RECO, to prevent serious harm to the public and consumers’ interests, and to restore confidence in the organization.”
Crawford gave RECO 15 days to respond before making his final decision.
Today I issued a formal letter to the chair of the board of the Real Estate Council of Ontario.
— Stephen Crawford (@stcrawford2) November 13, 2025
Following my review of the Dentons report on RECO’s handling of the iPro matter, I have notified RECO’s Board of my intention to appoint an administrator to restore public confidence… pic.twitter.com/QGkicaoiEs
The audit, conducted by Dentons Canada LLP, found that RECO’s former registrar “deviated from RECO’s typical approach when dealing with situations involving misappropriation of trust funds.”
The report detailed how the registrar failed to freeze iPro’s accounts or notify the board promptly, leaving consumer deposits and commissions vulnerable for months. “These were significant failings on the part of the Registrar,” the report stated.
The iPro Realty case, which saw roughly $10 million missing from trust accounts, became the largest shortfall in RECO’s history. Despite the gravity, RECO did not lay charges or issue fines, allowing the brokerage to continue operating for four months before its closure.
The Dentons report also flagged a “reasonable apprehension of bias,” as one iPro principal was a former RECO board member.
While the report found no evidence of improper influence, it criticized the registrar for not following standard protocols and for including a “non-prosecution” provision in the agreement with iPro’s principals, a move that risked undermining public trust.
Industry leaders responded swiftly. “We endorse the intention to appoint an administrator to ensure RECO gets back to the basics of fulfilling its consumer protection mandate,” said Cathy Polan, president of the Ontario Real Estate Association (OREA), and Elechia Barry-Sproule, president of the Toronto Regional Real Estate Board (TRREB), in a joint statement.
“OREA and TRREB remain committed to collaborating with the Government of Ontario on reforms that strengthen transparency, accountability, and public confidence in Ontario’s real estate market.”
In September, OREA and its nine largest Member Boards ramped up its demand for independent oversight of RECO.
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