RECO announces full payment of eligible iPro commission protection claims

• RECO is enabling 100 per cent payment for all eligible iPro commission protection claims.
• RECO is using funds available from its insurance program stability fund to further support the insurer in processing claim payments.
• With initial 50 per cent pro-rated payments already underway, additional payments are expected to begin as early as next week.
• Release documentation is required in order for payments to be issued.

Toronto, ON – The Real Estate Council of Ontario (RECO) today announced that claimants affected by the iPro Realty Ltd. (iPro) matter will be able to receive 100 per cent of their eligible commission protection claims.

From the outset, RECO has been focused on ensuring that all eligible commission protection claims are fully compensated, recognizing the significant financial and personal hardship this situation has caused registrants and their families.

“RECO is enabling the full payment of all eligible commission protection claims. Funds from RECO’s insurance program stability fund are being placed in a protected trust to address the shortfall that RECO believes resulted from the misappropriation of trust funds by iPro’s principals, while concerted recovery efforts continue,” said Jean Lépine, Administrator and Acting CEO for RECO. “Our focus remains on minimizing the financial impact this situation has had on registrants and holding bad actors to account.”

While recovery through the courts will take time, RECO has determined that registrants should not bear further financial responsibility while these efforts continue. Given the nature and scale of the iPro matter, RECO has taken steps to support the work of the insurer by enabling full payment of all eligible commission protection claims.

Stephen Crawford, Minister of Public and Business Service Delivery and Procurement, added:

“From day one, our government has been clear: we will always protect the people of Ontario. That’s why I directed RECO to take strong, decisive action to restore trust in the real estate services sector and to make sure hardworking registrants are not left paying the price for the actions of a few bad actors.”

Minister Crawford continued, “Today’s announcement shows that commitment in action. By ensuring every eligible commission protection claim is paid in full in accordance with the insurance program, we are putting registrants first, strengthening accountability, and delivering the stability people expect and deserve. This is a key step in protecting Ontario’s real estate market and restoring confidence for families and workers across the province.”

Recovery efforts and developments

RECO and the insurer have been pursuing multiple recovery pathways related to the iPro matter, including the commission protection insurance process and civil proceedings to recover trust account shortfalls that RECO believes resulted from the misuse of trust account funds by iPro’s principals.

As part of these efforts, the insurer continues to seek court approval to access funds held in frozen iPro trust accounts, which can only be released pursuant to a court order. The court recently authorized access to funds for the purpose of commission claims payments, representing important progress in the recovery process. Further court applications will continue in parallel.

Payment process

As was the case with the initial 50 per cent pro-rated payments, the insurer, supported by RECO, is working to ensure funds are released as quickly and as efficiently as possible.

Claimants will be required to complete and return the payment release documentation to enable the insurer to release funds. Commission protection claim payments remain subject to the applicable deductibles and program terms, as set out in the insurance policy.

The issuing of payments to individuals will depend on how promptly claimants submit the required information and sign release documents requested by the claims adjuster.

Once release documentation is received and processed, eligible commission protection claim payments can be made. With initial 50 per cent pro-rated payments already underway, additional payments are expected to begin flowing as early as next week and will continue as claims are processed and finalized.

The insurer has worked diligently to assess and verify a significant volume of commission protection claims over a short period of time. Claims continue to be reviewed and adjudicated, with each claim carefully and meticulously assessed to ensure accuracy, legitimacy and fairness. 

Looking ahead

Payments will continue, while civil proceedings to recover trust account shortfalls continue in parallel.

RECO remains focused on bringing this matter to resolution and restoring public confidence.