When did RECO announce annual financial filings for real estate brokerages?
June 16, 2026.
When will annual financial filing begin?
October 1, 2026, is the start date for submitting annual financial filings to RECO.
What exactly will brokerages be required to file beginning on October 1, 2026?
Starting October 1, 2026, all Ontario brokerages are required to complete annual financial filings. Annual financial filings must be submitted online through RECO’s MyWeb portal and will require standard information regarding the brokerage’s financial health and trust accounts compliance.
The filing must include:
- Information from the brokerage’s financial statements
- Information about trust assets and liabilities
- Information about unclaimed trust monies held by the brokerage
- Compliance attestations by the broker of record
What will a broker of record be required to provide in attestations?
The broker of record must provide attestations as to whether or not:
- The brokerage maintained sufficient funds in its trust accounts to discharge its trust liabilities;
- The brokerage is keeping trust monies separate and apart from money belonging to the brokerage;
- The brokerage is disbursing trust monies in accordance with the terms of the trust;
- The broker of record authorized all transactions involving trust monies;
- The brokerage maintained a written record of the receipt of money that came into the brokerage’s hands in trust for other persons in connection with the brokerage’s business, and of every transaction relating to that money;
- The brokerage’s trust records were complete, accurate, and up to date;
- The brokerage is completing trade record sheets as required;
- The brokerage prepared a monthly trust reconciliation for all month ends that occurred in the fiscal year;
- The broker of record reviewed and signed the monthly trust reconciliation for all month ends that occurred in the fiscal year;
- The brokerage immediately notified RECO of any shortfall in its real estate trust account and deposited sufficient funds to eliminate the shortfall;
- The brokerage promptly notified RECO of any of the following financial circumstances:
- The brokerage’s liabilities exceed the realizable value of its assets, or the brokerage is unable to pay its liabilities as they become due;
- An insolvency proceeding is commenced by or against the brokerage or the brokerage has received information that such an insolvency proceeding is imminent; or
- A court order or judgment is made against the brokerage in relation to trading in real estate, or misappropriation, fraud or breach of trust; and
- The brokerage notified RECO of all changes in directors, officers, shareholders, or partners.
Why is this filing requirement being introduced now, and what is its purpose?
The annual financial filings requirement directly supports RECO’s mandate to strengthen consumer protection and enhance financial oversight of the sector.
The purpose of annual financial filings, along with the future monthly trust reconciliation reporting requirements and RECO’s inspection framework, is a shift toward a more proactive, data-informed regulator. By establishing this robust financial reporting standard, RECO aligns Ontario with national regulatory best practices, better safeguarding consumer funds and reinforcing long-term confidence across the sector.
More specifically, these filings will help RECO assess financial compliance, identify potential risks and ensure that brokerages are meeting their regulatory obligations. Future monthly trust reconciliation reporting requirements will provide up to date information that will allow RECO to monitor trends, identify early issues and respond quickly to potential risks.
Annual financial filings begin on October 1. What is the timeline for filing with RECO?
As of October 1, 2026, all Ontario brokerages can begin to submit annual financial information for their most recently completed fiscal year. Due dates for filings are as follows:
- Initial filing (based on prior fiscal year) – due October 30, 2026
- Subsequent filings – on or after August 1, 2026 – due within 90 days of fiscal year end
These examples are provided to help Brokers of Record identify filing period & due date that applies to their brokerage:
For brokerages without trade or trust activity in their previous fiscal year, a simplified submission on the annual filing portal will be available as an alternative to the full financial filing.
What if I need more time to file, may I obtain an extension?
We understand that adapting to new processes takes planning, which is why we are sharing these details early and providing proactive resources to support your team. We encourage brokerages to begin preparing early as part of strong governance practices, and our team is fully available to support you through the process.
What if a brokerage doesn’t submit annual financial filing by the due date?
Brokerages that fail to submit the required annual financial filing by the due date may face enforcement action under the Act.
Enforcement actions may include a requirement to provide a financial statement certified by a licensed public accountant, and/or a proposal for suspension, refusal to renew, or revocation of registration.
What happens if a brokerage does not file?
Brokerages that remain non-compliant after the filing deadline of October 30, 2026, should expect progressive enforcement action, which will include:
- potential posting aggregate information of brokerages who are out of compliance with the AFF requirements;
- late filing fees of $300;
- referral to RECO’s Discipline Committee after a defined period of time;
- public posting of the names of registrants subject to discipline proceedings, in accordance with the Trust in Real Estate Services Act, 2002;
- RECO seeking additional fines imposed through the discipline process, which may include a further fine of $2,500 and $1,500 costs award; and
- suspension of registration where the required filing remains outstanding and ultimately, revocation of registration for continued failure to file.
Paying a fee does not remove the obligation to file. Enforcement action may continue for as long as the brokerage remains non-compliant.
My brokerage did not trade in real estate last year. Do I need to complete the annual financial filing?
For brokerages without trade or trust activity during the fiscal year, a simplified submission will be available as an alternative to the full financial filing.
These brokerages will be required to declare no trade activity and upload the trust account statement from their financial institution using the online annual filing tool.
How many brokerages are there in Ontario, and is participation in annual filing expected by all of them?
There are approximately 3,800 brokerages in Ontario and all are required to comply with the annual financial filing requirements.
A simplified submission will be available for brokerages without trade or trust activity during the fiscal year.
Is annual financial reporting a standard regulatory practice?
Yes, implementing annual financial filings brings Ontario in line with the majority of real estate services regulators across Canada, including Alberta, British Columbia, Saskatchewan, Manitoba, Quebec, Nova Scotia, and Newfoundland.
How does annual financial filing align with the Trust in Real Estate Services Act, 2002 (TRESA) governing the conduct of real estate agents and brokerages in Ontario?
TRESA states the following:
- “The registrar may, subject to the regulations, request information from registrants or a group of registrants for the purposes of this Act and may specify the form in which the information is to be given and the time within which it must be given.” (TRESA, section 48.1)
- “Every registrant shall give the information that the registrar requests under this Act or that is otherwise required to be given to the registrar under this Act,
- within the time and in the form specified under this Act or the regulations; or
- if not specified under this Act or the regulations, within the time and in the form specified by the registrar.” (TRESA, section 48.2)
Is RECO doing anything besides annual financial filings to strengthen financial oversight of real estate brokerages?
Yes. Annual financial filings for real estate brokerages is complemented by RECO’s audit and inspections framework. RECO will use this data to inform risk-based action, targeting regulatory resources more effectively to ensure they are deployed where brokerage conduct poses the highest risk to consumers.
To further strengthen oversight of trust monies, RECO plans to introduce monthly trust reconciliation reporting in 2027. Information about this will be provided as soon as it’s available.
Did RECO engage the real estate sector about this change?
Yes, RECO sought feedback in meetings and roundtable discussions with sector stakeholders and industry associations to ensure brokerages are fully prepared for this next phase.
Does this affect real estate brokerages or real estate agents?
Ontario brokerages are required to submit an annual financial filing to RECO beginning October 1, 2026. The requirement does not apply to individual real estate agents.
Do Personal Real Estate Corporations (PRECs) need to complete annual financial filings?
No. Annual financial filing only applies to real estate brokerages, and a broker of record will be required to complete and submit an annual financial filing on behalf of their brokerage.
How will brokerages submit their annual financial filings to RECO?
Annual financial filings will be submitted online through RECO’s MyWeb, a secure, private portal for registrants. Information on how to use the annual financial filing portal to submit annual financial filing is available on RECO’s website.
How is RECO implementing the collection and analysis of brokerage financial filings?
RECO is collecting and analyzing financial filings through a digital platform that supports efficient submission and data analysis. The secure platform, accessible through RECO’s MyWeb portal, incorporates analytics and risk-detection tools to identify anomalies and potential areas of concern.
How does the new annual financial filing requirement address data security?
Filing data is protected by multiple layers of security. Access is secured through Single Sign-On (SSO) authentication and strict role-based permissions, ensuring that brokers can only access the data they are authorized to view. All filing information is encrypted both during transmission and while stored in secure cloud environments, helping keep data safe and confidential at all times.
Will brokerages be required to use the services of a Chartered Professional Accountant (CPA) or Licensed Public Accountant (LPA) to complete or verify the annual financial filing?
At this present time, there is no requirement for a Chartered Professional Accountant (CPA) or Licensed Public Accountant (LPA) to complete any portion of the filing. However, RECO does recommend brokerages engage an accountant to prepare the brokerage’s financial statements.
The broker of record must attest to the accuracy of the information being submitted to RECO.
Are there cost implications of annual financial filing for brokerages?
RECO is committed to minimizing the operational impact where possible, while upholding our mandate to ensure financial responsibility and consumer protection across the industry. An efficient, online, secure platform has been developed to collect the information.
As part of annual financial filing, will we see a publication of information (pass or fail) for brokerages?
No, there will not be publication of pass or fail information related to annual financial filings. However, related enforcement actions, including actions taken in response to a failure to file or a failure to file by the due date, may be published. In addition, general information related to compliance rates and learnings about the sector may be published.
How will information from annual financial filing be used?
Data collected will enable RECO to efficiently identify anomalies and potential areas of concern.
The new annual financial filing requirement, underpinned by RECO’s audit framework along with the introduction of monthly trust reconciliation submissions in 2027, marks a definitive shift towards a proactive, data-informed regulator.
What support will RECO provide to brokerages through this transition?
RECO is committed to supporting brokerages throughout this transition to ensure brokerages are fully prepared.
RECO emailed information to brokers of record and has published instructional guides and a webinar recording on its website to help them prepare and complete their filings early.
How will RECO help brokerages prepare to submit to RECO their monthly trust reconciliation?
RECO continues to work with the sector and seek feedback from stakeholders to ensure brokerages are prepared for this next phase. Details will be provided later this year.
I am a broker of record, will I be able to get training with instructions about how to submit annual financial filing to RECO?
Yes, RECO emailed information to brokers of record and has published instructional guides and a webinar recording on its website to help them prepare and complete their filings early.
When is the first annual financial filing due, and how is it determined for brokerages with different fiscal year-ends?
The filing portal opens October 1st and the submissions deadline for the inaugural filing is October 30, 2026 for a brokerage’s most recently completed fiscal year.
When will more information be available about monthly trust reconciliation reporting?
RECO plans to introduce monthly trust reconciliation submissions in 2027. In advance of implementation, information will be available with ample time to ensure brokerages are fully prepared for this next phase.
How can I confirm that RECO received my filing?
After you submit your filing in the annual financial filing portal on MyWeb, a confirmation message will appear on the screen to confirm it’s complete.
You can also log into MyWeb and select the Documents tab anytime to verify your filing has been submitted.
I have specific questions about annual financial filing for my brokerage, who can I contact?
Please email aff@reco.on.ca.