In addition to the questions answered live during the meeting, RECO received the following questions, which have been published in full for transparency, with responses below.
Why are registrants not able to vote on motions?
Response: On April 30, 2026, RECO announced a governance transition to strengthen oversight, following an order by the Minister of Public and Business Service Delivery and Procurement.
This announcement included an update to RECO’s membership model, moving from an open to a closed model, where only the Board of Directors are members of RECO and have voting rights. This creates a clear separation between decision-makers on consumer protection issues, and the real estate brokerages and agents that RECO oversees.
For more information, please see RECO’s news release.
What is the status of RECO’s technology upgrade process?
Response: RECO is undergoing a digital and technology modernization to help us work smarter, using better data and stronger systems.
A comprehensive current-state technology assessment has now been completed. This work has identified key system gaps, process pain points, data limitations, and opportunities to modernize how RECO manages regulatory activity. The assessment will inform a three-year transformation roadmap, including requirements for a modernized Case Management System and supporting platforms to ensure RECO is fulfilling its consumer protection mandate.
Does RECO plan to expand its team or make changes to the organizational structure?
Response: Earlier this year, RECO announced a new organizational structure to support RECO’s transformational agenda and deliver on its ambitious goals, as well as a new executive team to drive systemic change. RECO is also assessing future workforce and resource needs to ensure the organization has the right capabilities to deliver on its evolving mandate. This includes identifying where new skills, specialized expertise, and additional capacity are required.
For more information, please see RECO’s 2026 Business Plan.
How is RECO demonstrating more transparency with its stakeholders?
Response: 2026 has marked a period of transformation for RECO, following the Minister of Public and Business Service Delivery and Procurement’s appointment of an Administrator to bring systemic change and restore confidence in Ontario’s real estate sector. To deliver these objectives, RECO is modernizing how it operates, and taking concrete action to strengthen consumer protection.
As part of this work, RECO announced that it will be requiring brokerages to submit annual financial filings. By taking a more proactive approach to oversight, RECO will gain insight into the financial health of brokerages, and better identify when consumer and registrant funds are at risk. Annual financial filings will also allow RECO to take a stronger risk-based approach, and target resources where they are needed most.
In addition, a new “Recent regulatory actions” webpage has been launched, which publishes all of RECO’s enforcement action in one place. This not only promotes transparency and accountability but is an important consumer protection resource.
Change is underway, and it’s grounded in a clear plan to strengthen oversight, modernize how we operate, and ensure this system works the way it’s supposed to.
Moving forward will RECO’s AGM be a closed membership model?
Response: Yes, as announced on April 30, 2026, RECO is transitioning its governance framework following Minister’s Orders issued to strengthen regulatory oversight and independence. Under this new structure, RECO's membership model moves from open to closed, meaning only members of the Board of Directors hold voting rights.
RECO will continue to engage registrants through direct communications, industry events, and the renewed Industry Advisory Council as part of its commitment to modernizing sector regulation and enhancing consumer protection.
What will the future role of the Industry Advisory Council be, and how can registrants apply to join?
Response: RECO plans to re-establish the Industry Advisory Council by the end of the year. It will serve as a structured forum for registrants to share advice, expertise and perspectives with RECO on matters affecting the real estate sector.
More information about the Council, including how registrants can learn more, express interest or participate, will be shared in the coming months.
Is RECO considering a direct reporting channel for registrants to flag unethical behaviour, misleading claims, or conduct that harms the public and the industry’s reputation?"
Response: RECO takes concerns about misconduct seriously and encourages anyone who has information about potential non-compliance with the Trust in Real Estate Services Act, 2002 (TRESA) or its regulations to bring it to RECO's attention.
Registrants, consumers and members of the public can report concerns directly to RECO. Information received is reviewed and assessed, and where appropriate, may lead to further inspections, investigations, or enforcement action.
Visit our website to learn more information about submitting a complaint.
Will RECO print " Working with a Real Estate Agent " for registrants so it can be distributed to consumers?
Response: As a modern regulator, the “Working with a Real Estate Agent" document, also known as the RECO Information Guide, is delivered as a digital tool. For ease, RECO provides an online sharing portal so registrants can easily send the guide directly to consumers before providing services. You can access the digital tool, printable PDFs, and full guide online: RECO Information Guide & Sharing Tool.
The Guide explains what buyers, sellers and renters need to know about their rights and responsibilities in a real estate transaction. It also helps consumers understand what to consider before working with an agent or brokerage, or choosing to represent themselves in Ontario.
Does FINTRAC publicly report the volume of reports received, how many lead to investigations, and how many result in charges or enforcement action?
Response: RECO does not receive information from FINTRAC regarding the number of reports submitted, investigations undertaken or charges laid. Questions regarding those activities are best directed to FINTRAC.
The Board of Directors should have real estate experience. How will RECO ensure the Board understands the realities of the industry?
Response: In regard to governance changes that have come into effect, active registrants are not able to be elected to the Board of Directors, to maintain independence between the regulator and those it regulates. However, individuals with real estate experience can apply to be selected by the Board as vacancies arise. To ensure transparency, required skills and qualifications will be published at the time of recruitment.
RECO also plans to re-establish the Industry Advisory Council by the end of the year, and it will provide ongoing advice and practical industry perspectives to management. More details on the governance changes.
Why is automatic mortgage merging not mandated for long-term payers, despite arguments that consolidating second and third mortgages after two years lowers monthly payments, reduces interest burden, and protects consumers from default?
Response: The proposal described relates to mortgage lending practices and the regulation of financial institutions. RECO's mandate is to regulate real estate professionals under the Trust in Real Estate Services Act, 2002 (TRESA), including ensuring registrants meet professional standards and comply with their legal obligations when providing real estate services to consumers. RECO does not have the authority to establish or require mortgage lending policies.
Are unclaimed deposit funds held by RECO in an interest-bearing account? If so, who is entitled to the interest generated? If not payable to the depositors, how does RECO account for and use the interest? Is there legislation or regulation governing the interest on unclaimed deposit funds?
Response: Unclaimed trust funds held by RECO are deposited into an interest-bearing account. The use of the interest is outlined under TRESA, section 27 (9), which states:
(9) If money has been paid to the administrative authority under clause (4) (a) or (5) (a), the administrative authority shall allocate any interest that is earned after it has received the money to a separate account and may use the money from that account only to cover the costs of administering the trust fund and processing claims for the recovery of money held in trust. 2002, c. 30, Sched. C, s. 27 (9).
Is RECO aware of any criminal prosecutions that the principals of iPro are facing and were they ordered to pay back all the deficits in their trust account?
Response: There has been significant action regarding the iPro matter, including supporting claims processing, recovery and accountability efforts, and strengthening financial oversight of Ontario’s real estate services sector.
RECO is pursuing civil proceedings to recover trust account shortfalls believed to have resulted from the misuse of funds by iPro’s principals. This matter has also been referred to the Ontario Provincial Police who are investigating.
More information is available in RECO’s recent iPro update.
Now that the Errors and Omissions (E&O) insurance program has paid out all the shortfalls to agents and brokers for the misconduct of iPro and their principals, how will this impact the E&O insurance registrants will have to pay moving forward? Will the payment increase, and if so, by how much?
Response: RECO’s professional liability insurance program is a critical safeguard that protects consumers and supports market stability. This year’s insurance renewal is currently underway, and the payment remains $500 unchanged since 2022. Research is currently being conducted by RECO, including consultation with real estate errors and omissions (E&O) insurance programs across Canada, to inform potential future policy proposals. As this work advances, RECO will continue to assess policy options that balance stronger protection, fairness, and long-term market confidence.
Why are there no education / training or governance of regarding business brokers?
Response: RECO is currently undertaking a broader review of its education program as part of its education modernization initiative. The work is intended to ensure that the delivery of education supports high professional standards and consumer protection. Feedback regarding business brokerage education will be considered as part of that work.
Why hasn't there been a mandatory Commission Trust Account requirement for brokerages?
Response: In June 2026, RECO announced new measures to strengthen oversight of funds held and managed by real estate brokerages. Starting this fall, RECO will require Ontario brokerages to submit annual financial filings. By taking a more proactive approach to oversight, RECO will gain insight into the financial health of brokerages, and better identify where there is risk to consumer and registrant funds. This approach will allow RECO to react earlier, before harm is done. Further, RECO also plans to introduce monthly trust reconciliation reporting requirements in 2027 to provide additional real-time oversight.
RECO recognizes the importance of strong financial oversight and is examining whether stronger safeguards are needed to better protect commissions owed to registrants, including the potential benefits and practical implications of any policy changes associated with trust accounts.
How does RECO reconcile the consumers' desires for insider information/trading conflicts and the regulator's desire to avoid/eliminate those conflicts of interest?
Response: Consumers may value early access to information, market insight or opportunities that arise through a real estate professional’s network. However, those benefits cannot come at the expense of fairness, confidentiality or the professional’s duties to their clients.
Registrants must comply with the Trust in Real Estate Services Act, 2002 (TRESA), including rules related to conflicts of interest, disclosure and professional conduct. RECO’s role is to ensure that real estate agents are acting in accordance with their legal obligations and that any potential conflict is identified, disclosed and appropriately managed. Real estate professionals must not misuse confidential information, place their own interests ahead of a client, or act where a conflict prevents them from providing objective and competent service.
How will service quality be measured and improved to match fees, considering the 2022 fee reduction was a reaction to the Auditor General's report on poor value for money? How will the regulator ensure transparency and accountability?
Response: RECO is required to operate on a cost-recovery basis. This means fees must be sufficient to fund the regulatory services, oversight, systems and expertise needed to protect consumers and administer the legislation effectively.
The 2022 fee reduction lowered revenues below the level required to sustainably deliver RECO’s mandate. Any fee changes that are considered intend to restore financial sustainability, not to generate a profit. Fees are calculated based on the reasonable cost of regulation and supported by disciplined budgeting, expenditure controls and ongoing financial oversight.
RECO will remain accountable by publicly reporting on its financial position, service standards, regulatory performance and the outcomes achieved with fee revenues. This will allow consumers, registrants, the Board and Government to assess whether resources are being used effectively and whether RECO is delivering on its consumer protection mandate.