Realtors Seek Compensation After Brokerage Shutdown
A group of real estate agents, owed thousands of dollars, gathered at Queen’s Park hoping to catch the attention of the provincial government. Their demand for full compensation follows the abrupt closure of iPro Realty, one of Ontario’s largest real estate brokerages.
The closure, triggered by a significant shortfall in trust accounts holding clients’ money and agents’ commissions, left many realtors in financial distress. Broker Jimmy Ghimery shared his personal loss of over $200,000, impacting his family’s financial stability.
Approximately 2,400 agents are estimated to have suffered losses totaling around $30 million. Many feel let down by the Real Estate Council of Ontario (RECO), the industry regulator, accusing it of failing to protect their interests.
Following an audit that revealed systemic issues, the Ford government intervened in the oversight of RECO. The audit highlighted lapses in handling complaints related to iPro Realty, including a significant delay in freezing the trust accounts despite early warnings.
While an administrator has initiated partial payouts to affected agents, frustrations linger as only 50% of owed amounts have been disbursed. The affected realtors are now demanding full compensation, emphasizing the urgency of the situation.
In an effort to address the crisis, the administrator and RECO are working towards resolving the outstanding claims. Despite an ongoing investigation by the OPP, updates on the matter remain scarce.
Keyphrase: real estate compensation crisis