The Ford government announced on Friday that an administrator has been appointed to assume control of the Real Estate Council of Ontario (RECO) following an independent audit into alleged funds misappropriation by iPro Realty. This decision came after Ontario’s Minister of Public and Business Service Delivery, Stephen Crawford, gave RECO a two-week deadline to address concerns raised about its practices and procedures.
In a letter shared on social media, Crawford emphasized the need for decisive action to prevent harm to the public and consumers’ interests. He mentioned losing confidence in RECO among consumers, realtors, and brokers over the past three months as a driving factor behind the decision.
To restore confidence and support those affected financially, Jean Lépine has been named as the administrator who will assume control of RECO starting December 1. Lépine, a seasoned executive with experience in various industries, will collaborate with RECO and the government to facilitate a smooth transition and continue ongoing reforms.
The Chair of RECO’s board of directors, Katie Steinfeld, acknowledged the seriousness of the iPro Realty issue and its impact on stakeholders. An audit by Dentons Canada LLP revealed a $10-million shortfall in iPro’s trust accounts in May, which was not monitored or frozen by RECO until nearly three months later. Legal action has been taken against iPro, and efforts have been made to safeguard trust funds and support affected parties.
Steinfeld highlighted the swift and decisive actions taken by RECO upon learning of the situation and mentioned that transactions affected by the iPro incident were successfully completed. The regulator is committed to collaborating with the government to implement reforms and address cultural concerns raised in the audit through a new organizational structure.