UPDATE: Ontario government to take control of RECO

• By Spencer Rioux
• Posted Monday, Dec 01, 2025 1:14 pm

UPDATE: Ontario government to take control of RECO

The Ontario government will assume control of the Real Estate Council of Ontario (RECO), Minister Stephen Crawford has announced.

In a letter addressed to RECO Chair Katie Steinfeld and CEO Brenda Buchanan, Crawford said Friday morning that he has appointed veteran communications and government relations professional Jean Lépine as the administrator of RECO, effective Monday. 

“Over the past 3 months, I’ve heard from consumers, boards, realtors & brokers who’ve lost confidence in Ontario’s real estate regulator,” Crawford said in a post on LinkedIn.

The decision comes following Crawford’s review of a scathing audit by Dentons Canada LLP of RECO’s handling of the $10-million iPro Realty Ltd. fraud scandal.

“Ultimately, the Dentons final report raises concerns about RECO’s ability to restore public confidence in the real estate services sector and to protect consumers during one of the largest purchases of their lives,” said Crawford’s letter.

RECO found on May 19 that a “significant shortfall” was missing from iPro’s. However, the regulator did not move to shutter the firm and freeze its assets until August. RECO subsequently brought in Dentons to conduct an audit into the iPro matter.

Agents march for answers on when they will be paid

The announcement came as affected agents, some of whom are out six figures in commissions, prepared to march on Queen’s Park in Toronto on Friday morning.

Signs were held with messages such as, “RECO sits on millions. Realtors struggle to eat,” and “Families affected. Thousands of victims. Where is the justice?”

Agents have shared with Real Estate Magazine the heavy emotional and financial toll the situation is having on them and their families. Some have said they are unable to pay for basic living expenses as they wait for compensation.

Consumers have been receiving payouts for their lost deposits from the insurance program funded by Realtors. The Real Estate Trust Account is a statutory trust, which gives consumers legal priority over other creditors, according to RECO’s website.

RECO outlines commission claims plan

RECO said in a memo on its website Friday that the insurer has received more than 1,500 new submissions since early October. Because claims are still being verified, the insurance program manager is not yet able to issue payouts or seek the court approvals required to help distribute trust account funds, it said.

“Before the program can establish its approach to payment of commission claims, we must first understand the balance of funds in iPro’s trust accounts against the total amounts being claimed,” said RECO. “There remains uncertainty due to the scale and complexity of the alleged fraud at iPro, which is requiring detailed diligence, tracing and verification to properly assess all claims.”

RECO said claims will be treated equitably, not first-come, first serve. Some submissions have already been deemed ineligible.

Once assessments and reconciliations conclude, the program will distribute $4 million in available insurance coverage on a pro-rated basis. RECO expects this to take place in early 2026.

“Once the insurance limits have been disbursed, we will work to secure as much of the frozen assets as possible to pay further amounts,” said RECO.

‘Heads need to roll’

Toronto Realtor Sandra Jackson has been publicly outspoken about the debacle since the beginning, critical of RECO’s handling of the situation. 

She told Real Estate Magazine she’s pleased that someone from outside the industry was chosen as the administrator. 

Lépine is described on the Government of Ontario’s website as a “seasoned communications, government relations, investor relations and sustainability executive.”

“I will say that the Ontario government, the ministry, seems to have made a good choice. He’s educated, it appears that he has the experience needed,” she said of Lépine. “I love the fact that’s not industry-related, so no bad buddy-buddy decisions will be made.”

Jackson, who also runs groups teaching real estate law, said she’s hoping Lépine will make bold moves as “heads need to roll on this one,” she said.

Lépine has the right to exercise RECO board, officer powers

The Ministry of Public and Business Service Delivery and Procurement provided details to REM about Lépine’s authority over RECO. The administrator will report directly and provide regular updates to the department and ministry staff.

According to a department spokesperson:

“The administrator will have the exclusive right to exercise all the powers and perform all the duties of RECO’s board, officers, and members and will oversee and maintain RECO’s operations to ensure that RECO is equipped to effectively regulate registrants and is fulfilling its consumer protection mandate.”

Further, “The administrator will work with the insurer and related parties promptly to support those financially....[READ MORE]