Ontario has taken full control of the Real Estate Council of Ontario after Premier Doug Ford ordered the removal of its entire board of directors. The province dismissed all eight members in response to ongoing concerns about the regulator’s handling of the iPro Realty trust account scandal.
New administrator Jean Lépine began his role this week. RECO confirmed to the Star that all directors “cease to hold office upon the appointment of the Administrator.” Lépine was granted full authority over the board, officers, and members through a directive issued by Public and Business Service Delivery Minister Stephen Crawford.
Lépine said he plans to spend the next several weeks speaking with industry stakeholders. He said these meetings will help him rebuild public confidence in the regulator. A minister’s order made public Monday detailed his mandate and confirmed his compensation of two thousand dollars per day.
Industry officials expect broader staffing changes inside the organization. The order did not specify who else might be removed, but several insiders said they expect Lépine to reorganize RECO’s operations.
The province’s intervention follows intense criticism of RECO’s response to the iPro Realty breach. The brokerage’s co-founders, Rui Alves and Fedele Colucci, reached an agreement with RECO that allowed them to avoid charges and fines despite “illegally disbursing” more than ten million dollars from trust accounts holding consumer deposits. Alves is a former RECO board member.
RECO did not alert the public immediately after uncovering the breach. Instead, it allowed iPro to continue operating for three months, during which the brokerage handled more than seven hundred million dollars in residential sales.
The minister’s directive instructs Lépine, who has extensive experience in communications and government relations, to deliver reforms that strengthen RECO’s governance, internal culture, and operational policies. He must provide a plan by March 31, submit a progress update by June 30, and file a final public report by December 31.
Premier Ford addressed the issue directly during an Ontario Real Estate Association conference in Toronto. He told attendees his government would fix what he described as a “total mess” at the regulator. He said agents who lost commissions in the iPro case should receive every dollar owed.
Ford said he expects daily updates on RECO’s progress. He added that the province will ensure affected agents receive their full commissions. He said the goal is to prevent similar failures and protect consumers and industry professionals going forward.
