Update: RECO issues Public Advisory regarding Reio Realty Ltd.
Updated: May 3, 2019
On April 29, 2019, the Real Estate Council of Ontario (RECO) laid 10 charges under the Real Estate Business Brokers Act 2002 (REBBA) against:
- Reio Realty Ltd. (five charges); and
- Lou Grottola, Broker of Record (five charges).
These matters are currently before the court.
During an inspection, RECO discovered a shortfall in Reio Realty Ltd.’s Statutory Real Estate Trust Account.
On April 30, 2019, under the authority of REBBA, RECO issued a Freeze Order, freezing the bank accounts of Reio Realty Ltd.
On May 2, 2019, the Registrar issued a Notice of Proposal to revoke Grottola’s registration as a broker and Reio Realty Ltd.’s registration as a brokerage under REBBA. The Registrar also issued an order to immediately suspend Reio Realty Ltd.’s registration in order to protect the public. The proposal and order may be appealed to the Licence Appeal Tribunal.
Any home buyers or sellers who have representation agreements or deposits with Reio Realty Ltd., and need guidance on next steps, are asked to refer to the contact information below.
Former employees of Reio Realty Ltd. can also refer to the contact information below.
Home buyers and sellers with questions about the impact of the freeze order, including whether a pending sale or purchase will be completed on time should contact:
Dipak Parmar
Phone: (416) 207-3118
Toll Free: 1-800-245-6910, ext. 3118
Email: dipak@reco.on.ca
Questions about consumer deposit claims, or other insurance-related inquiries, should be directed to RECO’s Insurance Department:
Jeremy Meuris
Phone: (416) 207-4841
Toll Free: 1-800-245-6910, ext. 4841
Email: insurance@reco.on.ca
Cooperating brokerages for trades in which Reio Realty Ltd., holds the deposit and/or are owed commissions by Reio Realty Ltd. should contact:
Jeremy Meuris
Phone: (416) 207-4841
Toll Free: 1-800-245-6910, ext. 4841
Email: insurance@reco.on.ca
Employees of Reio Realty Ltd., with questions about commissions should contact the claims adjuster for RECO’s insurance program:
ClaimsPro LP
Toll Free: 1-877-740-1913
Toll Free Fax: 1-866-735-1033
Email: claims@reco-claims.ca
The insurer requires one Notice of Claim Commission Protection form per trade. Claim forms are located on the insurer’s website: www.reco-claims.ca
Employees of Reio Realty Ltd., with questions about the procedures for transferring a registration to a new brokerage should contact:
Michelle Toomey
Phone: (416) 207-4807
Toll Free: 1-800-245-6810 ext. 4807
Email: registration@reco.on.ca
Original Advisory Issued: May 1, 2019
On April 30, 2019, under the authority of the Real Estate Business Brokers Act 2002 (REBBA), the Real Estate Council of Ontario (RECO) issued a Freeze Order, freezing bank accounts of:
Reio Realty Ltd.
Of 5851 Royal Manor Drive, Niagara Falls, ON L2G 1E9
Freeze Orders are invoked by RECO against brokerages, when required, to prevent funds from being withdrawn from a brokerage’s accounts, in order to protect consumer deposits. A RECO inspection revealed irregularities in the finances of Reio Realty Ltd., and the matter is being investigated further. Additional action may be taken and information will be made available through RECO’s website.
For more information about freeze orders, read this FAQ.
