Toronto, September 8, 2025 — The Ontario Real Estate Association (OREA) is urging the provincial government to place the Real Estate Council of Ontario (RECO) under the oversight of the Ontario Ombudsman in response to the ongoing fallout from the iPro Realty scandal.
OREA, which represents nearly 100,000 realtors, argues that RECO — tasked with regulating real estate agents and brokerages — cannot continue to police itself. “Trust accounts are sacred, consumer protection is non-negotiable, and RECO cannot be left to police itself,” OREA president Cathy Polan stated.
The scandal erupted after RECO discovered a shortfall of up to $10.5 million in consumer and commission trust accounts at Mississauga-based iPro Realty Ltd., which employed about 2,400 agents across 17 locations in the GTA. Although some funds were later restored, the brokerage was forced to cease operations in August.
The Ontario Provincial Police are now investigating the matter, while RECO has commissioned Dentons Canada LLP to conduct an independent audit of its handling of the case. RECO’s registrar, Joseph Richer, also resigned as the controversy deepened.
Legal and academic experts say the case highlights regulatory failures. Daniel Tsai, a lawyer and adjunct professor at Toronto Metropolitan University, called the scandal a “textbook example” of government and professional oversight breakdowns, suggesting the province may need to take over RECO or even disband it to restore credibility.
Real estate lawyer Michael Amurjuev called the scandal “shocking” but said it should serve as a catalyst for important reforms to protect buyers, sellers, and realtors. Frank Clayton, a senior research fellow at TMU, emphasized the need for stronger safeguards on escrowed deposit funds, noting that “the system is working, but not fast enough in this instance.”
With public trust shaken, the call for independent oversight through the Ontario Ombudsman is gaining momentum. Advocates stress that restoring confidence in Ontario’s real estate sector — one of the busiest in the world — will require immediate, transparent reforms.