The Ontario government has stepped in to take direct control of the Real Estate Council of Ontario (RECO) following a critical audit that uncovered serious issues in the regulator’s operations and internal culture.
The audit focused on RECO’s handling of iPro Realty, a brokerage that has since closed, and found major lapses in oversight. Despite iPro alerting the regulator in May that its trust accounts were short by $10 million, RECO’s registrar neither froze nor closely monitored the accounts for almost three months — a delay that raised alarms about consumer protection and the regulator’s responsiveness.
Public and Business Service Delivery Minister Stephen Crawford said the findings point to broader concerns about RECO’s ability to safeguard homebuyers and maintain confidence in the real estate sector. He emphasized that consumers rely on strong oversight when making what is often the biggest purchase of their lives.
Given the seriousness of the audit’s conclusions, the province has decided it is necessary to appoint an external administrator to take control of RECO’s operations. Jean Lepine will assume that role starting Monday, with a mandate to stabilize the organization and restore public trust.
The move signals a rare and significant intervention by the province in a regulatory body that oversees tens of thousands of real estate professionals across Ontario.