(Jean Lépine/Ontario One Call).

The board of the Real Estate Council of Ontario (RECO) was let go as a government-appointed minister stepped in on Monday, but questions remain about CEO Brenda Buchanan’s role. 

On Friday, Minister Stephen Crawford announced that communications and government relations specialist Jean Lépine would assume authority over RECO as an administrator, effective Dec. 1. 

The move is a response to the $10-million fraud scandal at iPro Realty Ltd., which came to the surface earlier this year, and RECO’s mishandling of the situation. 

In an email on Monday evening, RECO confirmed that “board members cease to hold office upon the appointment of the administrator.”

When Real Estate Magazine asked what the administrator’s appointment would mean for Buchanan, RECO referred to the minister’s order, which says, “The Administrator shall have the exclusive right to exercise all the powers and perform all the duties of the board, officers and members of RECO.”

“We don’t have any further information for you at this time beyond what is set out in the Minister’s order,” said a RECO spokesperson. 

Buchanan was named CEO in July, after covering the role on an interim basis for five months. She previously served as RECO’s chief operating officer for six years. 

Lépine making $2,000 a day

The minister’s order lays out the following compensation terms for Lépine:

• The administrator shall be remunerated at the rate of $2,000 per diem, for up to 250 calendar days, up to a maximum remuneration rate of $500,000.
• The per diem rate is based on a 7.25-hour day and a five-day work week. 
• Only one per diem payment shall be made to the administrator per calendar day.
• The administrator shall be reimbursed for reasonable work-related expenses that are incurred while carrying out the duties of that position, to a maximum of $35,000.

For the last three years, Lépine has served as the chief strategy officer of another administrative authority, Ontario One Call, a public safety authority that aims to prevent the public from hitting underground infrastructure while digging.

He also has served as chair of the Ontario French-Language Educational Communications Authority for more than four years. 

Administrator to deliver a plan by March 31

Lépine is tasked with taking charge of RECO’s operations to ensure the organization can effectively regulate real estate professionals and uphold its consumer-protection mandate. 

According to the minister’s order, he will begin implementing structural and policy changes to restore public trust, strengthen RECO’s governance and culture and address key recommendations from the recent Dentons Canada LLP report, while working with the insurer and others to support those who have been financially affected.

The order states Lépine shall deliver an implementation plan no later than March 31. He is also expected to deliver an initial written report no later than June 30, and a final written report no later than Dec. 31, 2026. The final report will be made public.

Ford publicly pledges to help agents who lost commissions

Speaking at the Ontario Real Estate Association (OREA) Power House Conference on Monday, Premier Doug Ford said he’s going to “fix that whole mess over at RECO.”

“One way or another, we’re going to cover each and every single agent that’s owed every single penny,” he said. 

While consumers are being paid back their lost deposits through insurance, agents have been told by RECO that they will have to wait until the insurance program manager makes more headway in processing claims. 

Courtney Zwicker

Courtney Zwicker is a digital reporter and associate editor for REM. Based in Atlantic Canada, she has over a decade of experience covering daily business news.