iPro Realty Ltd. shut down by Ontario’s real estate watchdog

A real estate sign is displayed in front of a house in the Riverdale area of Toronto on Wednesday, Sept. 29, 2021. THE CANADIAN PRESS/Evan Buhler

A Toronto-area real estate brokerage is no more after the province’s industry watchdog said that it discovered a “significant shortfall” in its accounts.

The Real Estate Council of Ontario (RECO) says it has finalized an undertaking with Mississauga-based iPro Realty Ltd. which will lead to the brokerage’s wind-up and closure as of Aug. 19.

In a statement to CTV News Toronto, Joseph Richer, RECO’s registrar, said a total deficit of more than $10 million was identified in iPro’s consumer deposit and commission trust accounts, but has since declined to less than $8 million.

He said the inspection of iPro’s accounts was scheduled, however the owners advised RECO of the shortfall before it took place.

“The funds that were unaccounted for were to have been held in the consumer deposit and commission trust accounts, but we have not yet confirmed the number of consumers or agents affected,” he said.

“This is a serious breach of iPro’s responsibilities under the law and to its consumers and agents.”

Richer explained that all real estate agents in Ontario are required by law to have professional liability insurance which includes consumer deposit and commission protection.

There are 2,400 agents employed at iPro and the brokerage has locations in Mississauga, Toronto, North York, Scarborough, and across the Greater Toronto Area.

RECO will oversee operations at iPro until it closes on Aug. 19.

I sold my property with iPro. Will my deal close?

According to RECO, transactions involving iPro will continue to close in the normal course of business.

“First and foremost, please contact the real estate agent you have been working with. If you need more assistance than your agent is able to provide, ask to speak to the management of iPro,” RECO wrote in a news release.

RECO said it, the new leadership of iPro, and the insurer are working to minimize the impact on consumer deposits.

Those owed a commission by iPro can file an insurance claim, however the limit per individual claimant is $200,000 and the insurance payouts related to this event will be capped at $4 million.

I’m selling my property with iPro and have offers on the table. What happens now?

RECO said that if your negotiations conclude before Aug. 19, the transaction will proceed, as long as you have a signed agreement of purchase and sale (APS).

“If the agreement to buy or sell a property has not been signed by all parties, you will have to sign a new representation agreement with your agent and their new brokerage,” it said.

If my deposit was held by iPro, where is it now?

RECO says that your APS should identify where your deposit is being held. If it is being held with iPro, RECO recommends reaching out the real estate agent you’ve been working with for more assistance.

My agent works at iPro. Can I still work with them?

RECO said many agents from iPro will be transferring to a new brokerage and you can sign a new representation agreement with them at their new brokerage. Alternatively, buyers and sellers can choose to sign a new representation agreement with a new agent if they choose.

CTV News Toronto has reached out to iPro for comment on the situation.