Real estate agents formerly employed by iPro Realty will now get 100 per cent of their unpaid commissions.
The Real Estate Council of Ontario (RECO) announced the move Wednesday after declaring in October 2025 that agents could expect 50 per cent of their unpaid commissions – a decision one agent told Global News didn’t go far enough.
“RECO is enabling the full payment of all eligible commission protection claims. Funds from RECO’s insurance program stability fund are being placed in a protected trust to address the shortfall that RECO believes resulted from the misappropriation of trust funds by iPro’s principals, while concerted recovery efforts continue,” Jean Lépine, administrator and acting CEO for RECO, said in a news release.
“Our focus remains on minimizing the financial impact this situation has had on registrants and holding bad actors to account.”
The development comes after iPro was ordered to close on Aug. 19, 2025 by RECO, the industry’s regulator; shortfalls in its consumer deposit and commission trust accounts were uncovered, forcing 2,400 agents to seek new brokerages.
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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.
RECO said Wednesday that it and its insurer have been pursuing “multiple recovery pathways,” including the commission protection insurance process and civil proceedings to recover trust account shortfalls.
The insurer continues to seek court approval to access funds held in frozen iPro trust accounts, which can only be released via court order, RECO said. The court recently authorized access to funds for the purpose of commission claims payments.
“Claimants will be required to complete and return the payment release documentation to enable the insurer to release funds. Commission protection claim payments remain subject to the applicable deductibles and program terms, as set out in the insurance policy,” RECO said.
“Once release documentation is received and processed, eligible commission protection claim payments can be made. With initial 50 per cent pro-rated payments already underway, additional payments are expected to begin flowing as early as next week and will continue as claims are processed and finalized.”
RECO added that payments will continue while civil proceedings are ongoing.
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