The Ontario government is contemplating assuming control of the provincial real estate regulator following an audit that uncovered alleged financial improprieties by iPro Realty. The minister of public and business service delivery stated that the review of the Real Estate Council of Ontario revealed significant issues with the regulator’s practices and procedures.
According to the minister, these deficiencies in RECO’s response to the iPro case have eroded confidence in the real estate sector’s oversight. The government is concerned about RECO’s ability to regain public trust in real estate services and safeguard consumers during significant transactions.
The minister has given the RECO board of directors a two-week deadline to address the concerns before a final decision is made. RECO responded on its website, expressing commitment to collaborating with the government and implementing recommendations from the report.
The audit revealed that the former Registrar at RECO did not follow standard procedures when handling the iPro trust fund shortfall, which was reported to be $10 million in May. The board of directors acknowledged the need for greater accountability, transparency, and operational improvements, pledging to implement the recommendations promptly.