RECO Gets a Watchdog But Is That Enough?
In the wake of the recent iPro Realty scandal, the Ontario government has stepped in, appointing an external administrator to oversee the Real Estate Council of Ontario (RECO). On December 1, 2025, Jean Lépine officially took on the role, with a mandate to restore transparency and public trust in Ontario’s real estate regulator.
But is this the reform the industry and the public really needs?
What Happened? The iPro Fallout
The iPro Realty scandal raised serious concerns about how real estate brokerages are monitored in Ontario. The alleged mishandling of consumer funds, failure to meet trust obligations, and lack of timely intervention drew sharp criticism toward RECO’s oversight capabilities.
In response, Ontario has taken a rare step: installing an independent administrator to review, supervise, and propose reforms at RECO itself.
What Does This Mean for Consumers and Agents?
This shake-up could be a turning point — or just a temporary fix.
- For consumers:
You may see stronger consumer protections and faster action on complaints.
But will enforcement actually improve — or just the optics? - For agents and brokerages:
Compliance and audit standards may tighten, especially around trust accounting, disclosures, and internal training. - For the industry as a whole:
The move signals that regulatory reform is coming, possibly including a larger shift toward integrating regulatory bodies like BC’s Financial Services Authority (BCFSA) which now governs real estate, insurance, and mortgage brokering under one roof.
Is Centralized Regulation the Future of Real Estate in Ontario?
British Columbia and Alberta have already taken steps to merge financial and housing regulators under single entities. These models offer a more cohesive framework for consumer protection and market oversight.
Ontario may be testing the waters for a similar shift, especially if Lépine’s interim role uncovers systemic gaps in RECO’s structure.
My Take as a Realtor
As someone working on the frontlines with buyers, sellers, and investors every day; I believe transparency, trust, and accountability must be the pillars of this profession.
✅ Stronger regulations = good.
❌ Token appointments = bad.
It’s not just about public confidence, it’s about doing business the right way.
