RECO’s board acts to protect homebuyers and sellers; launches immediate independent and comprehensive audit into iPro matter

Freeze ordered on iPro accounts to safeguard funds 

Toronto, ON – August 25, 2025

Protecting the public is RECO’s top priority, and therefore RECO has initiated the following:

• The immediate freeze of iPro’s accounts, to safeguard funds and secure business operations, 
• A comprehensive and independent audit into the handling of the iPro matter, 
• A full review of ongoing compliance files currently at RECO, and
• A thorough organizational review to ensure that RECO is equipped to meet its consumer protection mandate, to assess and improve the regulatory function, and to strengthen oversight and accountability within the organization.

“RECO’s board of directors takes its responsibility to protect consumers and registrants seriously. We have directed the CEO to take clear and concrete action to protect homebuyers and sellers and real estate agents and to strengthen our ability to deliver on RECO’s mandate,” said Katie Steinfeld, Chair. 

Protecting homebuyers and sellers during the windup of iPro Realty Ltd. 

The freeze of iPro's accounts means that all transactions will now be processed through ClaimsPro LP, the insurance adjusters for the professional liability policy administered by RECO. The freeze will ensure safeguards are in place while still permitting a process for closure of real estate transactions. 

RECO will be distributing detailed communications for those with pending transactions, so that they can conclude with clarity. This includes information on next steps for consumers, agents, brokerages, and others. This will be available on the News section of RECO’s website. 

Comprehensive and independent audit

The board has engaged an independent legal firm, Dentons Canada LLP, to: 

• Conduct an independent and comprehensive audit into the iPro matter, including a review of the agreement undertaken by the previous Registrar, 
• Advise the board on legal options under the Trust in Real Estate Services Act, 2002 (TRESA) to ensure greater oversight and governance going forward, and
• Deliver an interim report to the board by September 30, 2025, and then a full final report by October 30, 2025. RECO will release the final report’s recommendations.

An independent accounting firm is being engaged to oversee iPro’s closure/wind up and will ensure oversight for remaining iPro transactions, as well as providing forensic audit services. 

As part of a comprehensive review, RECO’s CEO will assess: 

• All current compliance files, 
• Audit, investigation, and enforcement procedures, and 
• The appropriate authority and responsibilities of the Registrar role. 

“I know that the vast majority of agents and brokers meet the highest level of integrity and deliver professional services to the public. The entire board is deeply committed to the effective regulation of the sector and expects that rogue players be held to account for their actions. The board will work tirelessly to deliver on our commitment to Ontarians. All real estate transactions must be completed with the utmost honesty and integrity and consumers in Ontario must be protected,” added Ms. Steinfeld. 

For further information about the iPro closure, please contact information@reco.on.ca. 

For information about insurance claims, please contact insurance@reco.on.ca.