RECO Introduces Brokerage Reconciliation Inspections
In March, the Registrar introduced brokerage reconciliation inspections to complement the current onsite inspection program.
Development and introduction of reconciliation inspections is consistent with RECO’s core purpose of fostering confidence and upholding integrity in real estate transactions.
Randomly selected brokerages will be asked to submit trust account reconciliations for a given period so that the Office of the Registrar may review the reconciliations,
ensuring compliance with the Real Estate and Business Brokers Act, 2002 and its regulations. As each brokerage is already required to prepare a monthly reconciliation statement for its designated real estate trust account, complying with the request should take a minimal amount of time.
Along with the trust account reconciliation, brokerages must include a copy of the bank/financial institution statement for the real estate trust account, a list of the pending trades that make up the trust liability of the brokerage and a letter indicating that the broker of record has reviewed the submission and can attest to its authenticity. A sample letter of reply will be included with the reconciliation request.
Questions about reconciliation inspections can be directed to inspections@reco.on.ca
