Strengthening trust account oversight

I would like to thank all those who participated in this week’s first Collaboration Summit. This important event is an example of many forums we intend to host that will help inform solutions for change in key areas such as annual filings, trust accounts, and RECO’s insurance program.

Through my ongoing engagement with the sector, one issue that continues to generate significant concern is the management and use of trust account monies.

As the Minister of Public and Business Service Delivery and Procurement, Stephen Crawford, noted, protecting trust monies — whether consumer deposits or commission-related funds — is non-negotiable.

First, let me reaffirm what the Trust in Real Estate Services Act, 2002 (TRESA) already makes unequivocally clear: trust account requirements exist to protect consumers and ensure that real estate transactions close as intended. These funds must be held in trust strictly for their designated purposes: to secure deposits, facilitate the completion of transactions, and be disbursed in accordance with the terms of the trust, including commissions where authorized. They are not to be used for operating expenses, cash flow support, investments, or any other purpose outside what the law expressly permits.

Any deviation from these requirements, intentional or otherwise, is a serious contravention of TRESA. It undermines consumer confidence, jeopardizes the integrity of the transaction process, and ultimately damages the trust the public places in real estate agents.

We know that oversight of trust accounts needs to be strengthened, ensuring that every brokerage fully complies with trust account obligations, without exception. Further, we need to not only address issues as they arise but also take steps to prevent misuse of funds in the future.

In the coming weeks, we will be assessing oversight measures that reinforce compliance expectations across the sector. We will continue to keep the sector updated as this work progresses. In the meantime, let me assure you: the protection of trust account monies remains an absolute priority, and we will take all necessary steps to safeguard them.

Thank you for your support, and I look forward to continuing our work together.

Sincerely, 

Jean Lépine
Administrator and Acting CEO
Real Estate Council of Ontario (RECO)