Regulator finds $2.7m improperly taken from trust accounts
Ontario’s real estate regulator has moved against four Save Max brokerages after an investigation found millions of dollars have been improperly taken from their trust accounts and later replaced.
Regulators said they were taking action against the brokerages, with the case stemming from a complaint filed in December 2024 which triggered inspections and a third‑party forensic review completed in January 2026.
“Approximately $2.7 million was disbursed unlawfully from four brokerage Real Estate Trust Accounts, demonstrating clear and repeated breaches of TRESA,” the Real Estate Council of Ontario (RECO) said.
RECO added that the funds were typically put back “before month‑end, when brokerages are required to complete a reconciliation of the Real Estate Trust Account.”
Trust account misuse raised red flags
According to RECO, the money was used “outside of the terms of the trust, including for loan payments, property management fees, taxes, credit card balances and vendor services.”
The regulator issued notices of proposal to revoke registration, immediate suspension orders and freeze orders against Save Max Real Estate Inc., Save Max First Choice Real Estate Inc., Save Max Supreme Real Estate Inc. and Save Max Ace Real Estate, as well as brokers Raman and Nidhi Dua.
On February 3, RECO froze the brokerages’ bank accounts “to protect funds held in the brokerages’ accounts and to prevent withdrawals while safeguarding consumer deposits.”
It called freezing trust accounts “the strongest safeguard available” to ensure funds are not accessed for purposes beyond those legally permitted, with affected consumers now required to claim through insurance.
Part of a wider reckoning on oversight
Trust accounts have already been under intense scrutiny in Ontario. Following the iPro Realty scandal, where about $8 million was reported missing from trust accounts, the province confirmed it will appoint an administrator to assume control of RECO and restore confidence in its oversight.
In a separate case in 2025, RECO also froze the trust and operating accounts of HomeLife Today Realty after finding a significant shortfall of roughly $580,000.
Industry groups pressed for stronger checks even before the Save Max action.
“Trust accounts are sacred, consumer protection is non‑negotiable, and RECO cannot be left to police itself,” the Ontario Real Estate Association said in a 2025 call for independent oversight of the regulator.
RECO itself recently stressed that “trust account requirements exist to protect consumers and ensure that real estate transactions close as intended,” and that funds “must be held in trust strictly for their designated purposes.”
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