Doug Ford’s Tories warn they may take over Ontario’s real estate watchdog
An explosive audit has left the Real Estate Council of Ontario in shambles
The Ford government says it’s considering taking control of the Real Estate Council of Ontario, the watchdog that oversees realtors and brokerages across the province, after an explosive audit criticized the council’s handling of the recent iPro Realty scandal. In a letter sent to RECO on November 13, Minister Stephen Crawford warned that the takeover would proceed by the end of the month unless the organization could present a compelling alternative to restore public confidence.
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The audit found problems with the organization’s practices and internal culture. Its central focus was the collapse of Mississauga-based iPro Realty, one of Ontario’s largest brokerages. In May, RECO discovered that iPro had a shortfall of roughly $10.5 million in its trust accounts—money that was meant for consumer deposits and agent commissions. Instead, iPro’s founders allegedly used those funds to cover operating costs and pay investors. Co-founder Rui Alves maintains that none of the trust money was taken for personal use and that the shortfall was due to the housing market downturn as well as the need to repay high-interest loans.
The audit also alleges that RECO’s former registrar, Joseph Richer, deviated from standard enforcement procedures. Instead of laying charges, Richer allegedly struck a deal with iPro’s founders that let them voluntarily terminate their realty licences and avoid penalties. RECO’s board was not notified of the trust account breach until two days after the deal was signed. Richer left the regulator in August.
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Worse still, iPro was allowed to continue operating for three to four months after RECO discovered the shortfall, completing more than $700 million in transactions during that time. Minister Crawford’s letter said this sequence of decisions eroded the real estate sector’s confidence in RECO’s ability to protect consumers. His letter also gave the RECO board 15 days to address the crisis, but Crawford has already signalled on X that he intends to appoint an administrator to stabilize the organization.
Ali Amad is a Palestinian-Canadian journalist based in Toronto. His work has appeared in publications including Toronto Life, Maclean’s, Vice, Reader’s Digest and the Walrus, often exploring themes of identity, social justice and the immigrant experience.
