Agent and brokerage FAQ

What happened to iPro Realty Ltd.?

Prior to a scheduled inspection, iPro identified to RECO a multi-million-dollar shortfall in iPro’s trust accounts. These funds — consumer deposits and commissions — should have been securely held in trust. Instead, they were misappropriated. This represents a serious and unacceptable breach of trust by iPro’s leadership and a violation of their legal obligations under Ontario law.

RECO’s focus is on safeguarding the interests of all registrants and their clients as this matter is resolved.

Steps RECO has taken to protect you and your clients:

• Frozen iPro’s accounts to stop any potential for further misuse of funds, preserve what remains, and protect funds yet to be deposited.
• Directed affected consumers and agents to file insurance claims to ClaimsPro LP under RECO’s professional liability insurance program, ensuring there is a structured, fair process for payments.
• Worked with the insurer to expedite the insurance review process, protecting buyers, sellers, and agents.
• Commissioned an independent and comprehensive audit (conducted by Dentons Canada LLP) to fully examine what occurred and to ensure accountability. The findings will be made public later this fall.

I am owed commission by iPro Realty Ltd. – how can I recover

Agents are urged to file a commission protection insurance claim form with the insurance claims adjuster, ClaimsPro LP. Claims need to be submitted for each deal with commissions outstanding so they can be assessed promptly.  

Submitting a form earlier will not change the amount of the claim payment – claims will be treated equally and paid, at the earliest, when a transaction closes and commissions are due. The insurer is exploring all avenues to try to pay out commission claims as quickly as possible.

To file an insurance claim form with the adjuster, please complete the following steps:

1. Complete the Commission Protection Insurance claim form.
2. Email it directly to claims@reco-claims.ca and include “Attention: Jan Perkins” at the top of your message.
3. A ClaimsPro representative will contact you.

If you need assistance completing a claim form, please contact ClaimsPro directly. You may fill the form out to the best of your ability, and ClaimsPro will be in touch if they need additional information. You can contact ClaimsPro LP at 1-877-740-1913 or claims@reco-claims.ca. For general questions about iPro, email iproquestions@reco.on.ca.                              

RECO does not handle claims and is not able to provide information about your claim.  

Is there a limit on how much insurance will pay out?

The aggregate limit is $4 million for all Commission Protection claims related to this situation. The limit per claimant is $200,000 per individual, independent of the number of transactions that make up the total claim; it is not $200,000 per deal. 

I need help completing my claims form – who should I contact?

If you need assistance completing a claim form, please contact ClaimsPro directly. You may fill the form out to the best of your ability, and ClaimsPro will be in touch if they need additional information. You can contact ClaimsPro LP at 1-877-740-1913 or claims@reco-claims.ca.                         

RECO does not handle claims and is not able to provide information about your claim.  

How long will the claims process take?

The claims adjuster and insurer understand the urgency of this matter for everyone affected. Agents are urged to file claims as soon as possible so they can be assessed promptly. Once your form is submitted, ClaimsPro LP will contact you directly.

The insurer is also assessing registrant commission claims with a goal of ensuring fair and equal treatment for all affected registrants. They are working tirelessly to expedite assessments and have brought on additional resources to support the review process. However, due to the high volume of submitted claim forms, it could take up to 30-45 days from the time the adjuster receives it before a claim can be acknowledged. 

RECO is not the insurer and cannot determine if there is coverage for your claim.

My brokerage was involved in a transaction with iPro. How do I pay for commissions owed to iPro agents? 

For cheques that you have received or monies that are payable to iPro Realty, please send the cheque to Dipak Parmar at RECO.

Attn: Dipak Parmar
Real Estate Council of Ontario
1400-3300 Bloor St W, West Tower
Toronto ON M8X 2X2

Please send an email to dipak@reco.on.ca when the cheque has been sent. If available, please include in the email a copy of the Agreement of Purchase and Sale, the confirmation of Cooperation and Representation, and the trade record sheet if one exists.

What happens to my current listings?

Representation agreements, such as buyer or seller representation agreements, are between clients and the brokerage. Once the brokerage closes, these agreements become void. You will need to discuss with your clients whether they wish to stay with you and enter a representation agreement with your new brokerage or to use another agent and their brokerage.

How do I change my listing to a new brokerage?

You will have to discuss with your client whether they want to enter a new representation agreement with your new brokerage. If they do, then proceed with a new representation agreement with your new brokerage. Otherwise, your agreement is at an end, and the client can go to another brokerage of their choosing. 

What if I want to go to a new brokerage?

To support agents during this time, RECO will either waive or reimburse transfer fees, including for those agents who may have transferred immediately from iPro to iCloud and wish to transfer to a new brokerage in the coming weeks.

If you have additional questions about the transfer process, please contact information@reco.on.ca.
 

What if I want to start my own brokerage?

Any agent who wants to start a new brokerage should follow the process which can be found here.