Realtors affected by the iPro Realty scandal are planning another protest at Queen’s Park, saying regulatory failures have left them facing significant financial losses from unpaid commissions.
According to a Dec. 29 news release issued by real estate agent Maria Florez, affected agents from across Ontario will gather at Queen’s Park on Jan. 6, beginning at 10:30 a.m. The rally will call for greater accountability, transparency in settlement agreements, and stronger government oversight of the Real Estate Council of Ontario (RECO).
The release says protesters are demanding “accountability for regulatory decisions, fulfilment of public commitments, transparency in settlement terms and effective government oversight” of RECO.
Organizers point to a public pledge made by Doug Ford at the Ontario Real Estate Association’s Powerhouse Conference, where he said 100 per cent of commissions owed to affected realtors would be paid. However, agents now report receiving settlement offers for only 50 per cent of their commissions, contingent on signing non-disclosure agreements.
Protesters argue that oversight has failed to protect realtors, despite the provincial government collecting hundreds of thousands of dollars annually in regulatory and oversight fees from RECO. Organizers stress that the Jan. 6 demonstration is not partisan, but focused on fairness, transparency, and restoring confidence in Ontario’s real estate regulatory system.
The rally is expected to include remarks from affected realtors, industry lawyers, and elected officials, including Ontario NDP MPP Tom Rakocevic.
RECO response and recovery efforts
In a Dec. 24 open letter to affected agents, RECO administrator Jean Lépine said restoring trust in the regulator is his top priority. He said RECO is taking steps to recover trust account funds it believes were systematically misused by former principals of iPro and is working toward full payment of eligible commission claims.
The insurance program manager is currently facilitating prorated payments of 50 per cent of eligible commission protection claims. Lépine said these payments represent an initial step and that signing settlement documents does not preclude further compensation if additional funds are recovered.
Alternative Risk Services, the insurance program manager, has estimated total losses submitted as claims at approximately $30 million.
Lépine said two key actions are underway: seeking court access to frozen iPro trust accounts and initiating civil proceedings to recover funds that should have remained in trust for agents.
“These proceedings are not fast or simple,” Lépine wrote, “but we believe they will allow us to recover funds that should have been protected and paid to registrants.”
RECO issued freeze orders on iPro’s accounts in August, meaning the funds can only be accessed with court approval. Lépine also acknowledged the hardship the situation has caused agents and their families and said RECO is exploring all appropriate legal and financial options to achieve full repayment.
He added that RECO will host a series of virtual town halls for affected agents in the new year and plans to convene a sector-wide summit in January to discuss stronger safeguards for brokerage trust accounts.
Background on the iPro scandal
The provincial government assumed control of RECO on Dec. 1, appointing Lépine as administrator following concerns over the regulator’s handling of the iPro case.
An audit report found that RECO’s registrar deviated from standard procedures when dealing with and escalating issues related to alleged misappropriation of trust funds by iPro. According to the report, iPro disclosed a trust account shortfall of about $10 million to RECO on May 19, but the regulator did not publicly disclose the issue until Aug. 14, when it announced that iPro would terminate its registration and close on Aug. 19.
RECO froze all iPro accounts in August to safeguard remaining funds.
At its peak, iPro employed approximately 2,400 agents and operated 17 locations across Ontario, including Mississauga, Brampton, Burlington, Milton, Georgetown, Woodbridge, Orangeville, and Pickering.
Affected realtors have held multiple protests in recent months, including demonstrations outside RECO’s Etobicoke office and a previous rally at Queen’s Park on Nov. 28. The upcoming Jan. 6 protest marks the latest effort by agents seeking full compensation and systemic reform.