Background Information about RECO

The Real Estate Council of Ontario (RECO) is committed to protecting the public interest and enhancing consumer confidence in the real estate profession. We work to fulfill this goal through the day-to-day regulation of Ontario’s more than 75,000 real estate registrants.

The Ontario government sets the rules that real estate salespersons, brokers and brokerages must follow. Those rules are contained in the Real Estate and Business Brokers Act, 2002 (REBBA) and its associated regulations. RECO enforces these on behalf of the government.

RECO was established in 1997 as a delegated administrative authority (DAA) to enhance professionalism in the real estate industry, increase consumer protection and provide an effective and responsive regulatory framework.

RECO’s Role

RECO remains committed to protecting the public interest through a fair, safe and informed marketplace. This includes:

    • Registration: Enforcing the standards to obtain and maintain registration for brokerages, brokers and salespersons;
    • Education: Establishing education requirements to become a salesperson or broker, or to maintain registration (continuing education);
    • Inspections: Conducting routine inspections of brokerage offices to ensure they comply with REBBA;
    • Complaints: Addressing inquiries, concerns and complaints about the conduct of real estate professionals. Depending on the severity of the offence, RECO conducts a thorough investigation by gathering and reviewing evidence, and determining the appropriate course of action;
    • Insurance: Establishing and administering an insurance program that includes consumer deposit protection; and
    • Consumer Education: Providing helpful buying and selling information to consumers.

 

How RECO is reaching out to consumers

RECO has a number of initiatives to educate consumers about the home buying and selling experience and the value of a regulated real estate sector. Our website has a wealth of information for consumers, including:

    • Real Estate Professional Search: Our search feature allows consumers to confirm whether they are dealing with someone who is legally registered to trade in real estate in Ontario, and whether that person has been the subject of a charge or conviction.
    • Reconnect Newsletter: A newsletter that offers tips and news for home buyers and sellers.
    • Consumer Bulletins: Publications that address common issues that consumers have
    • Complaints: Consumers can submit a complaint if they have concerns about a registered real estate professional or someone holding themselves out as such. The complaint form and information about the process are available on RECO’s website.
    • Ask Joe: ‘Ask Joe’ is a column by RECO Registrar Joe Richer that appears each Saturday in the Toronto Star. Richer answers questions from readers on a variety of topics, including how to spot a former grow-op, protecting your deposit and bidding wars
    • Social Media: RECO maintains an active presence on social media to reach out to consumers and real estate professionals. Twitter/@RECOhelps | Facebook.com/RECOhelps | YouTube.com/RECOhelps | LinkedIn/Real Estate Council of Ontario
    • Consumer Education Campaigns: Each year, RECO engages Ontario’s home buyers and sellers through an educational campaign that includes face-to-face interaction at events, advertisements and online resources.

RECO has made consumer outreach a major priority, and we continue to get better at it every year. Here are some of the ways we have improved our approach, with highlights from our 2016 consumer survey:

Consumer Outreach:

    • As of 2017, 39% of consumers are aware of RECO, up from 37% in 2016;
    • We interacted with about 70,000 people at consumer shows;
    • 20,422 visits to 3 audience-specific microsites geared towards first-time home buyers, move-up buyers and downsizers;
    • Reach of RECO messages: 1.9 million on social media, 7.5 million in news stories, and 51.7 million in paid ads
    • Increased followers on social media channels to 11,725 on Facebook (6.7% increase over 2016), 4,513 on LinkedIn (36.5% increase over 2016), and 7,329 on Twitter (12.9% increase over 2016).


Complaints and enforcement:

Real estate professionals in Ontario must follow REBBA, including a Code of Ethics. If they breach these rules, there are various discipline paths and outcomes, depending on the severity of the offence.

In 2017, we reviewed and closed 2,926 complaints72% of complaints came from consumers, and 28% came from registered real estate professionals. When a complaint is filed, RECO will make inquiries and conduct an investigation as required. There are a number of potential outcomes to the complaint process:

    • In about 33% of cases, the Registrar will determine the appropriate action, which may include mediation, a written warning, educational courses, referral to discipline committee, immediate suspension, or provincial offences prosecution.
    • In about 9% of cases, if RECO’s Registrar believes a real estate professional will not carry out business with honesty, integrity or in accordance with the law, they have the authority to refuse registration or registration renewal, revoke or suspend registration, or apply conditions to a registration to ensure the public interest is protected.
    • In about 58% of cases, complaints are closed with no action because there was not enough evidence to support the complaint or the complaint falls outside of RECO’s authority.


Investigations:

RECO investigates alleged violations of the law (REBBA). In 2017, RECO opened 184 investigations and closed 169.

    • 99 Individual charges laid
    • 38 Prosecutions
    • 34 Convictions
    • $429,700 Total fines
    • $69,156 Total restitution payment ordered
    • 150 months Total probation sentenced


Inspections:

RECO conducted a total of 970 inspections in 2017 to ensure brokerages are following the rules and regulations. Findings from our registrant survey indicate 87% were very satisfied or satisfied overall with RECO’s inspection process.


Outreach and Response:

Our Complaints, Compliance & Discipline Department responded to 23,320 inquiries in 2017:

    • 15,970 were by phone
    • 7,350 were by email


RECO does not…

    • Have the authority to resolve monetary or contractual disputes or to assess or award damages.
    • Have authority over buyers and sellers, or over the valuations of properties.
    • Collect, maintain or distribute sales figures or market data. Sales figures are maintained by the Canadian Real Estate Association (CREA).
    • Regulate the sale of new homes. TARION Warranty Corporation regulates home builders to protect the rights of new home buyers.

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