Ontario sets new reporting rules for real estate brokerages

Ontario will require real estate brokerages to submit annual financial filings to the province’s regulator starting Oct. 1, as officials move to tighten oversight after the iPro Realty scandal. The Real Estate Council of Ontario said brokerages will need to attest to and provide information on financial statements, trust accounts, access to trust funds, unclaimed trust money and compliance. RECO said the new system is meant to identify risk earlier and direct enforcement resources where consumer exposure is highest. The change follows allegations that iPro Realty’s cofounders misused millions of dollars from trust accounts for business expenses and investor payments. RECO said the shortfall was about $10.5 million, and the brokerage later closed, affecting about 2,400 agents. The regulator also plans to add monthly trust reconciliation reporting in 2027.