Ontario’s real estate regulator has taken action against four brokerages over the alleged unlawful disbursing of funds from trust accounts.
The Real Estate Council of Ontario (RECO) announced Tuesday it has frozen the accounts belonging to the four Mississauga-based Save Max First Choice Real Estate brokerages and has notified Peel Regional Police about its findings.
“Freezing trust accounts is the strongest safeguard available to ensure that funds held in trust are protected and not accessed for purposes beyond those they are legally intended to serve,” RECO said in a news release.
“To access the funds, individuals must now go through the insurance claims process.”
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RECO alleges roughly $2.7 million was disbursed unlawfully from the accounts, and the money was typically replaced before month’s end, when brokerages are required to complete a reconciliation of a real estate trust account.
“The unlawfully disbursed funds were used outside of the terms of the trust, including for loan payments, property management fees, taxes, credit card balances and vendor services,” RECO alleged.
“Inspections of other Ontario Save Max brokerages found no significant issues with respect to the administration of each of those brokerages’ respective Real Estate Trust Account.”
RECO also suspended two brokers and issued notices of proposal to revoke registration against them and the brokerages.
The freeze is just the latest action taken by RECO in the industry.
In August 2025, RECO ordered iPro Realty to close after shortfalls in its consumer deposit and commission trust accounts were uncovered.
At the time, RECO said the shortfalls amounted to about $10.5 million, calling it a “serious breach” of the agency’s responsibilities under the law and to its customers and agents.
However, an audit ordered by the Ontario government found iPro had told RECO its trust accounts had a $10-million shortfall in May, but the registrar did not freeze or monitor their accounts for nearly three months afterwards.
RECO’s insurer, Alternative Risk Services, said in a statement that it projects the total losses submitted as claims to be approximately $30 million.
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