24/ RECO 2017 ANNUAL REPORT/BY THE NUMBERS Real estate professionals (often called “agents”) in Ontario must follow the Real Estate and Business Brokers Act, 2002 (REBBA 2002) including a Code of Ethics. If they breach these rules, there are various discipline paths and outcomes, depending on the severity of the offence. Does RECO have authority to deal with the complaint? RECO reviews/ gathers evidence Minor offences • RECO Registrar makes decision • Examples of potential penalties: - Given a warning - Ordered to take an educational course - Required to make a correction, such as fix an advertisement Misunderstanding between the parties • RECO Dispute Resolution (RDR) • RECO helps the parties discuss the complaint and possible solutions (Breaches of Code of Ethics) • Matter goes to Discipline Hearing • RECO prosecutes • Discipline Committee makes decision • Examples of potential penalties: - Ordered to take educational courses - Salespeople and brokers ordered to pay a fine of up to $50,000; brokerages ordered to pay a fine of up to $100,000 (Breaches of REBBA 2002 other than Code of Ethics) • Matter goes to Provincial Offences Court • RECO prosecutes • Justice of the Peace or judge makes decision • Examples of potential penalties: - Individuals: fines of up to $50,000 and/or prison terms of up to 2 years less a day - Corporations: fines of up to $250,000 More serious offences Is the complaint supported by evidence? No action Complaint closed/ no action RECO receives complaint/ misconduct is alleged. Most serious offences (Breaches of REBBA 2002 or very serious registrant misconduct) • RECO's most serious remedy: Registrar proposes to revoke, refuse to renew, suspend, or attach conditions to registration of registrant • If registrant doesn’t appeal, Registrar carries out proposal • If registrant appeals, Licence Appeal Tribunal makes decision • If the Registrar proposes to suspend or revoke a registration, the Registrar may also issue an immediate suspension order if the Registrar considers it in the public interest to do so 58% OF COMPLAINTS FALL INTO THESE TWO CATEGORIES 33% OF COMPLAINTS FALL INTO THESE TWO CATEGORIES 9% OF COMPLAINTS FALL INTO THESE TWO CATEGORIES Discipline Paths and Outcomes Understanding RECO's Discipline Paths and Outcomes