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Home News & Events Proposal to revert RECO registrant fees to 2022 levels (adjusted for inflation)

August 11, 2026

Proposal to revert RECO registrant fees to 2022 levels (adjusted for inflation)

RECO is seeking stakeholder feedback on a proposal to return registration, processing, and transfer fee rates to 2022 levels, adjusted by 2.1% for inflation. The revised fees are proposed to take effect on January 1, 2027.

Ontario has the lowest real estate services regulatory fees in the country and the largest real estate registrant population. RECO’s core responsibilities — including inspections, investigations, complaint resolution, and enforcement — are vital to protecting consumers and maintaining confidence in Ontario's real estate services sector.

A significant fee reduction was introduced in 2023 which will have resulted in an estimated $30 million in foregone revenue by the end of 2026.

While fees have not increased in nearly a decade, the cost and complexity of regulating the sector continue to grow. At the same time, RECO is investing in modernization that will strengthen regulatory oversight for years to come. Adjusting these fees is necessary to sustain the effective delivery of our mandate and move RECO closer to full cost recovery.

Proposed changes

 

Registration Fee
(Applies to new registrations and biennial renewals)

Processing Fee
(Applies to new applications)

Registration Transfer Fees
(Applies to transfers)

2022 Rate

$390

$200

$100

Current Rate
(As of March 2023)

$306

$50

$25

2027 Proposed Rate
(Reverses the fee reduction and includes an adjustment for inflation at 2.1%)

$398

$204

$102

 

Rationale for fee reversal

The proposed fee reversal is a critical, time-sensitive stabilization measure required to restore RECO’s financial sustainability and support its consumer protection mandate. The significant fee reductions introduced in 2023 will have resulted in an estimated $30 million in foregone revenue by the end of 2026. This contributed to an $8.5 million operating deficit in 2025, which is projected to grow, forcing an unsustainable reliance on reserves and increasing constraints on RECO’s ability to effectively deliver its statutory mandate.

Compounded by rising inflation, broader regulatory expectations, and increased resource demands to transform the organization and rebuild public and the sector’s trust, the current fee structure can no longer support RECO's operations. Returning to 2022 fee levels (adjusted for inflation) reduces the ongoing deficit and protects RECO's capacity to oversee Ontario's real estate services sector effectively while longer-term financial models are explored.

Analysis of impact

RECO’s historical operating results over 2023–2025 show a widening divergence between operating revenues and operating expenses following implementation of the fee reduction in 2023. As set out in the Table below, registrant numbers remained broadly stable over this period, while revenues declined and expenses increased.

 

2023

2024

2025

Number of Registrants

112,014

112,865

111,335

Revenues

$30.8M

$27.6M

$24.5M

Expenses

$23.4M

$27.4M

$33.0M

 

The expenses above reflect limited growth in organizational investment in 2023, marginal increases in 2024, and a more pronounced increase in 2025 driven largely by oversight costs resulting from the iPro Realty matter, including increased legal expenses. RECO generated materially less revenue despite serving a relatively stable  registrant base, highlighting a growing disconnect between recurring revenues and the scale of regulatory oversight being delivered. The cumulative impact of foregone revenue is estimated at approximately $30 million by the end of 2026 if current fee rates are maintained.

The 2026 forecast reflects a continuing structural funding gap. Base operating revenue is projected at only $25.7 million, supplemented by $4.3 million in investment income, for total funding of $30.0 million. At the same time, operating expenses are expected to increase, creating a projected $9.0 million shortfall that must be funded from reserves. This demonstrates that revenue remains well below the cost of delivering RECO’s mandate, while inflation, expanded oversight responsibilities and necessary modernization investments continue to drive expenses higher.

Critical investments (in people, technology and operational modernization), as expected at the time of the fee reduction, were largely deferred, creating an unstable operational foundation for the organization to sustain.

These trends indicate that revenues under the reduced fee structure have declined while the cost of RECO’s operations has continued to increase. Combined with RECO’s increased costs relating to transforming the organization into a modern, effective regulator, recurring fee revenues are no longer keeping pace with operating expenses, resulting in increased and unsustainable reliance on reserves to support ongoing operations.  

Submit your feedback

RECO welcomes feedback from stakeholders on the clarity of these proposed fee changes, as well as any practical implementation considerations.

Please share your thoughts by completing this feedback form by 4:00 p.m. on Sept 11, 2026.

RECO will review all feedback received during the consultation period and provide at least 60 days’ notice to registrants and stakeholders before any changes take effect.

For further information, please refer to our FAQ below.

Why is RECO proposing a fee reversal?
RECO is proposing to restore a more sustainable funding baseline by returning registration, processing and transfer fees to the 2022 fee rates, adjusted for inflation. RECO believes this proposed change is needed to support continued delivery of its legislative mandate and advance the modernization work required of a modern regulator, while aiming for cost-recovery.

Why is this necessary now?
Since the fee reduction that took effect in 2023, operating costs, regulatory expectations, and modernization requirements have continued to increase while recurring revenues have remained below the level required to sustainably deliver RECO's regulatory mandate.

Without this change, RECO will continue to operate on a deficit, projected at $9M, which will increase over time despite cost efficiencies.

Has RECO explored alternatives to a fee increase?
Yes. RECO assessed multiple options, including continued reserve utilization and operational efficiencies; however, these measures alone would not provide a sustainable funding solution or adequately support long-term delivery of the organization’s legislative mandate.

Didn't RECO reduce fees a few years ago? Why are you reversing that decision?
A fee reduction was implemented in 2023 with a corresponding strategy to utilize reserves to fund RECO’s operations and invest in modernization efforts. This did not occur.

Reserves are intended to provide financial stability and flexibility.

Continued reliance on reserves to fund ongoing operations is not sustainable and does not align with  cost-recovery principles. The proposed fee reversal would reduce reliance on reserves and create a more measured drawdown over time.

How much are fees changing?
The proposal restores registrant and related service fees to the 2022 fee rates, and adjusts for inflation at 2.1%, effective January 1, 2027.

Is this a redesign of the fee model?
No. While the fee amounts are changing, the proposed fee reversal restores a previously approved funding baseline, adjusted for inflation. At the same time, broader financial sustainability work continues, which includes a review of the current fee model.

How will the additional revenue be used?
The proposed fee reversal would help support ongoing regulatory delivery, consumer protection, compliance oversight, enforcement activities, and modernization investments required to effectively fulfill RECO's statutory mandate.

Learn more about RECO’s Transformation Initiatives and their progress on our website.

Is RECO in a deficit? Will this eliminate RECO's funding gap?
The current fee structure does not align with the resources required to deliver RECO’s mandate sustainably. While the proposed fee reversal would strengthen recurring revenues and narrow the gap, revenues are still below full cost recovery due to increased oversight, enforcement, and modernization costs.

Without this change, RECO will continue to incur annual projected deficits of $9.0M, which will increase over time.

Could fees change again in the future?
The fee reversal is the first step in restoring a sustainable funding baseline. RECO will continue broader financial sustainability work, including a comprehensive review of its fee model to ensure it supports the effective delivery of its consumer protection mandate, reflects the growing complexity of the sector it oversees, and aligns with appropriate cost-recovery principles. Any changes would be transparent and would include an opportunity for the industry to provide feedback and guidance on potential models under consideration.

How were the proposed fee levels determined?
The proposed fees reflect a return to the 2022 fee structure, adjusted for inflation, providing a pragmatic and familiar baseline while broader financial sustainability work is undertaken.

How does this compare to other regulatory jurisdictions?
RECO’s fees account for approximately 9 per cent of a real estate agent’s total annual dues in Ontario, with most costs paid to local boards and industry associations.

Despite regulating the largest number of registrants—and having the highest number of registrants per capita—Ontario currently has the lowest real estate services regulatory fees in Canada.