Ontario government to take over RECO

The Ontario provincial government has confirmed it will appoint an administrator to assume control of the Real Estate Council of Ontario (RECO), stepping in as the fallout over its handling of a high-profile real estate crisis rumbles on.

A letter by public and business service delivery and procurement minister Stephen Crawford, sent to RECO and its chief executive officer, said Jean Lépine would take over as the real estate regulator’s administrator on December 1.

Earlier this year, an independent audit criticized RECO’s approach to the iPro Realty scandal, which saw the real estate brokerage’s two co-founders allegedly misappropriate millions of dollars of funds intended for realtor commissions and customer downpayments.

Crawford said “consumers, boards, realtors, and brokers” had lost confidence in the regulator, and said the administrator would seek to rebuild that trust, work with the insurer and support financially impacted individuals.

The RECO audit – conducted by Dentons – exposed “significant issues” about RECO’s practices and procedures, Crawford added. He signalled his intention to appoint an administrator earlier this month.

Lépine, whose last role was as chief strategy officer with public safety authority Ontario One Call, has about two decades of experience as a communications executive.

The decision was welcomed by the Ontario Real Estate Association (OREA), which issued a statement applauding the government’s move on Friday.

“This decision by the provincial government will ensure RECO can get back to the basics of fulfilling its consumer protection mandate,” the association said.

“Ontario’s real estate regulatory framework must protect both consumers and registrants, safeguarding families making the biggest financial transaction of their lives and shielding Ontarians from unethical behaviour.”

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