An open letter on the actions addressing the iPro matter and upcoming transparency initiatives

Update for former iPro Realty agents and those directly affected

I wanted to provide you with an update on the concrete actions Real Estate Council of Ontario (RECO) is taking to accelerate payments to those impacted by the iPro Realty Ltd. (“iPro”) matter – action over words. Upon assuming the role of Administrator, I committed to working with the sector to restore trust and confidence in RECO and among the real estate professionals impacted by the ongoing iPro matter.

Central to this commitment to rebuilding trust in the regulator is taking all available steps to recover trust account funds that RECO believes were systematically misused by the former principals of iPro, and working toward the full payment of 100% of eligible commission claims owed to registrants as quickly as possible. This remains my top priority. RECO’s approach revolves around three key actions, all of which are currently underway:

• Insurance: As I shared last week, the Insurance Program Manager is facilitating pro-rated payments of 50% of eligible commission protection claims. This represents an important first step toward the full payment of eligible commission claims owed to you.
  
  We want to reiterate that signing and submitting claim forms, along with any associated release documents, does not limit or preclude additional payments to you for eligible claims. As funds are recovered through the additional steps outlined in this letter, the insurer will continue to facilitate further payments. If you have not yet submitted your claim, please do so as soon as possible. If you have not provided release forms out of concern, let me assure you again that this is only a first step, and that proper documentation is a necessary component for accelerating payments to claimants.

• Accessing frozen accounts: RECO issued Freeze Orders against iPro’s accounts to safeguard funds while allowing transactions to close, with the ultimate objective of ensuring registrants are paid. Funds in the frozen accounts, however, can only be accessed with court approval, which the insurer, working closely with RECO, is seeking through court proceedings. If court approval is obtained, these funds can be recovered and subsequently paid to eligible claimants.

• Civil proceedings: RECO has initiated civil proceedings to recover funds that should have remained in trust for the protection of agents but were instead disbursed by iPro. This is a first-of-its kind action for the organization. The objective of these proceedings is to recover and distribute those funds to eligible claimants. It is not a fast or simple process but one we believe will allow us to recover funds that should have been protected and paid to registrants.

These are concrete actions that RECO is taking to recover funds for agents.

I commit to sharing more updates as this process unfolds, with the next update to be provided by January 12, 2026.

I recognize the significant disruption this situation has caused for you and your families. Through no fault of your own, you are facing extremely difficult circumstances, and I want to assure you that RECO is exploring all appropriate financial and legal processes to work toward the full payment of eligible commissions to registrants.

In January, I will invite affected registrants to participate in a series of virtual town halls to share timely updates on these efforts and answer any new questions you might have.

Information for all registrants on our plans and transparency efforts

While securing the payment of commission protection claims remains my primary focus, I will also be sharing information on approaches being considered to strengthen RECO’s oversight of trust accounts, implement annual financial filings, and work with brokerages to prevent similar situations in the future. We will also be providing an update on how the organization is implementing the recommendations of the Dentons audit report.

In addition, I will be inviting sector leaders to a summit in January to discuss measures we can take together to ensure that brokerages of all sizes are fulfilling their commitment to safeguarding funds that are placed in brokerage trust accounts. Once again, thank you for your patience as we continue to work through options to accelerate payments and navigate through these unprecedented times. I look forward to connecting with you directly in the new year.

Sincerely, 

Jean Lépine
Administrator, Real Estate Council of Ontario