More than 94 per cent of Ontario real estate brokerages submitted their initial annual financial filings on time, according to a notice released Monday by the Real Estate Council of Ontario (RECO).

The regulator reported a compliance rate of 94.4 per cent for the first year of its new mandatory Annual Financial Filing program, which was announced in June. The program is intended to provide greater insight into brokerage financial health, strengthen trust account oversight and improve consumer protection. 

“Achieving 94.4% on-time compliance for initial filings is a significant result and reflects the commitment of Ontario’s real estate brokerages to meet their regulatory obligations,” said Jean Lépine, interim CEO of RECO, in a statement.

 “We are building a more modern, proactive and accountable regulator. Timely financial reporting helps RECO identify potential risks earlier, strengthen trust account oversight, and better protect consumers. We appreciate the sector’s response and the collaboration that helped make this first phase of the program a success.”

The program was introduced as part of sweeping new measures taken by RECO to tighten oversight in the wake of the iPro Realty Inc. trust account scandal. 

 

OREA and local boards recognized for their role

 

RECO credited the Ontario Real Estate Association (OREA) and local real estate boards for helping raise awareness of the new requirement and encouraging brokerages to submit their filings on time.

The regulator said it will continue working with sector associations and real estate board leaders to promote compliance, provide guidance and support professional accountability.

“This result is indicative of what can be accomplished when the regulator and industry work together toward a shared objective,” Lépine said.

 

Late filings could lead to fines, suspension and revocation

 

RECO says it is following up with brokerages that missed the Oct. 30, 2026, filing deadline and will take progressive enforcement action against those that remain non-compliant.

Enforcement measures may include a $300 late filing fee and the potential publication of aggregate information about brokerages that have not met the Annual Financial Filing requirements.

Brokerages that remain non-compliant after a defined period could be referred to RECO’s Discipline Committee. The names of registrants subject to discipline proceedings may be publicly posted in accordance with the Trust in Real Estate Services Act, 2002.

RECO may also seek additional fines through the discipline process, including a further $2,500 fine and a $1,500 costs award.

Where the required filing remains outstanding, brokerages could face suspension of registration and, ultimately, revocation for continued failure to file.

 

Financial data to inform future oversight

 

RECO says the Annual Financial Filing program will help it identify emerging risks, direct regulatory resources more effectively and strengthen accountability across Ontario’s real estate sector.

The information collected will provide a clearer picture of brokerage financial health and support a more proactive, risk-based approach to regulation.

RECO says it will continue analyzing the financial data submitted by brokerages and assessing the program’s effectiveness to determine whether improvements are needed for future filings.