On Tuesday, dozens of realtors gathered at Queen's Park, Ontario, to seek full compensation from the provincial government, following the abrupt shutdown of iPro Realty, one of the province's largest real estate brokerages. This closure, which took effect on August 19, 2025, came after an inspection highlighted a severe shortfall in the brokerage's trust accounts, which hold clients' funds and agents' commissions.
Realtor Jimmy Ghimery, who is among those affected, reported a loss exceeding $200,000. "Christmas was not the best... payments, mortgages are falling behind," he explained, emphasizing the personal toll this financial crisis has taken on his family. He expressed dissatisfaction with how the new year has begun for him and other agents who find themselves in similar predicaments.
The total estimated losses from the closure are around $30 million, impacting about 2,400 agents, many of whom feel let down by the Real Estate Council of Ontario (RECO), the industry’s regulatory body. According to realtor Tom Rakocevic, there is a sentiment of betrayal since the regulator is meant to protect agents from such crises. He stated that the current situation—a regulatory failure—is nothing short of a crisis and called on the government to explore all possible options to address it.
The Ford government assumed control of RECO after an audit revealed significant issues within the organization's practices and culture. The audit found that iPro had informed RECO of a $10 million shortfall in its trust accounts back in May. However, there was a delay of nearly three months before the registrar took action to freeze or monitor the accounts. This oversight has raised serious concerns about the effectiveness of the regulatory framework in protecting those in the real estate profession.
Following the brokerage's shutdown, an administrator named Jean Lépine was appointed to oversee operations. Partial payouts to agents affected by the iPro closure commenced in December; nevertheless, agents are currently expected to receive only about 50% of the funds owed to them. Outside the provincial legislature, numerous realtors demanded the government ensure 100% compensation for their losses.
In an open letter, Lépine detailed the processing of claim forms, stating that prorated payment offers have been made on approximately 700 forms, with payments already executed on 200 of them. Out of a total of 2,650 claim forms submitted, 1,500 have been processed, indicating some progress, albeit insufficient for the affected agents.
The Ontario Provincial Police (OPP) has initiated an investigation into the incident, which began in September, but no updates have transpired since then. The Office of the Minister of Public and Business Service Delivery and Procurement has informed CityNews that the administrator is collaborating with RECO to work towards full compensation for those impacted.
