Ontario’s real-estate regulator is also initiating an outside review of its own conduct.Graeme Roy/The Canadian Press
Ontario’s real-estate regulator announced Monday it was freezing bank accounts related to collapsed brokerage iPro Realty Ltd. and initiating an outside review of its own conduct since it learned that more than $10-million had gone missing from legally protected trust funds.
The announcement follows the Real Estate Council of Ontario’s announcement on Friday that it had parted ways with long-time registrar Joseph Richer, who for 12 years served as the top regulator for the province’s more than 110,000 registered realtors and brokers.
Official from Ontario’s real estate regulator leaves post after collapse of iPro Realty
Ontario regulator shuts down iPro Realty after finding $10-million shortfall in trust accounts
“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 of RECO’s board of directors, who is the broker of record for On The Block Realty Ltd., in a news release.
RECO’s board has retained law 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” and provide a report by Sept. 30. Denton’s will also be tasked with providing legal advice to the board on how it can “ensure greater oversight and governance going forward” under the governing legislation Trust in Real Estate Services Act, 2002, that guides how RECO functions.
The iPro matter has roiled real estate in the province, not least because it was one of the largest brokerages in Ontario with more than 2,400 agents.
Many realtors have expressed outrage that iPro was allowed to continue transacting business for months after RECO learned on May 19, 2025, that owners Rui Alves and Fedele Colucci had used more than $10-million from trust fund accounts designed to safeguard realtor commissions and consumer down payments for real-estate transactions. According to RECO statements, iPro’s owners used this money to pay operating expenses and give payments to their holding company’s investors.
On August 14, RECO announced what it called a “shortfall” in the trust funds, along with an announcement that it had entered into an agreement with iPro, winding up operations and transferring agents to a newly created entity called iCloud Realty Ltd., run by former iPro managers.
Ontario brokerage collapse raises questions about oversight
A week later, RECO confirmed that Mr. Richer had agreed as part of the iPro windup that while Mr. Alves and Mr. Colucci would lose their real estate licences, RECO would take no further disciplinary investigation or use its authority to lay charges for their conduct.
“The failure to hold those responsible fully accountable erodes public confidence in RECO and the entire real estate industry. It is imperative that all who were complicit in this scheme are investigated and prosecuted to the fullest extent of the law,” said Gloria Valvasori, a realtor with Century 21 Signature Service who shared her concerns in a letter to The Globe and also to Ontario’s Minister of Public and Business Service Delivery, Stephen Crawford, who provides government oversight to RECO.
The board announcement also said it would conduct a review of all current compliance files open at RECO.
“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,” said Ms. Steinfeld, in the release.