Realtors impacted by the iPro Realty scandal will begin receiving 50 per cent of their frozen commissions, with initial payouts starting as early as December 17, according to the Real Estate Council of Ontario (RECO).
RECO administrator Jean Lépine said the insurer’s administrator, Alternative Risk Services, will issue payments on eligible commission protection claims at a pro-rated rate of 50 per cent, supported by the professional liability insurance program. Lépine noted RECO’s priority has been to accelerate payments and confirmed that approximately $5 million in consumer deposit claims have already been paid to ensure buyers and sellers were not adversely affected.
However, many realtors say the partial payout falls far short of what they are owed. Maria Florez, a Burlington-based agent who says she is owed $50,000, expressed strong frustration, stating affected agents expect full payment, not half. Florez said she is part of a group of roughly 250 agents preparing to formally raise concerns with RECO and Premier Doug Ford.
According to Alternative Risk Services, total commission claims are estimated at $30 million. The insurer said the combination of the $4 million insurance limit and funds expected to be recovered from frozen iPro accounts will only be sufficient to cover about 50 per cent of total claims, calling the situation the largest of its kind in the insurance program’s 25-year history.
The province assumed control of RECO earlier this month, appointing Lépine as administrator following criticism of the regulator’s handling of the iPro case. An audit found RECO’s registrar departed from standard procedures after iPro disclosed a $10 million shortfall in trust accounts in May. Public disclosure did not occur until August, when iPro agreed to terminate its registration and cease operations.
RECO froze iPro’s trust accounts in August, preventing any funds from being released without a court order. The move prompted protests by realtors demanding access to earned commissions. At its peak, iPro employed about 2,400 agents across 17 locations in Ontario.
Florez and other agents argue the current insurance structure is unfair, noting that realtors are required to pay for insurance despite having no control over brokerage trust accounts. She is calling for greater accountability from brokerages and RECO, saying regulators should bear responsibility for ensuring commissions are paid in full when oversight failures contribute to losses.
Photo Credits : Durham region
