Former iPro Realty Agents to Receive 100% of Unpaid Commissions, RECO Announces

Former real estate agents who worked with iPro Realty will now receive the full amount of their unpaid commissions, the Real Estate Council of Ontario (RECO) announced Wednesday, reversing an earlier decision that limited payouts to 50 per cent.

The change comes months after RECO ordered the brokerage to shut down in August 2025 following the discovery of significant shortfalls in its trust accounts. At the time, the regulator described the situation as a “serious breach” of iPro’s legal obligations to both consumers and agents, leaving more than 2,400 real estate professionals scrambling to find new brokerages.

In a news release, RECO said it will now enable the full payment of all eligible commission protection claims. To address the funding gap, money from RECO’s insurance program stability fund will be placed into a protected trust.

“RECO is enabling the full payment of all eligible commission protection claims,” said Jean Lépine, administrator and acting CEO of RECO. “Our focus remains on minimizing the financial impact this situation has had on registrants and holding bad actors to account.”

When iPro was forced to close on Aug. 19, 2025, RECO initially estimated the shortfalls in consumer deposit and commission trust accounts at approximately $10.5 million. However, those figures have since grown. RECO’s insurer, Alternative Risk Services, now estimates that total losses submitted as claims could reach about $30 million.

The situation has also raised questions about regulatory oversight. An audit ordered by the Ontario government found that iPro informed RECO of a $10-million trust account shortfall as early as May 2025. Despite this, the registrar did not freeze or closely monitor the brokerage’s accounts for nearly three months, during which time the financial damage worsened.

RECO said it and its insurer are actively pursuing multiple recovery avenues, including the commission protection insurance process and civil legal proceedings aimed at recovering funds missing from iPro’s trust accounts. Some of those trust accounts remain frozen, and the insurer must obtain court approval before accessing the funds.

According to RECO, the court has now authorized access to certain frozen funds specifically to pay commission claims. Agents who filed claims will be required to complete and return payment release documentation before funds can be distributed.

“Commission protection claim payments remain subject to the applicable deductibles and program terms set out in the insurance policy,” RECO said, noting that the process will continue as claims are reviewed and finalized.

Initial payments covering 50 per cent of unpaid commissions are already underway. RECO said additional payments, covering the remaining balance, are expected to begin flowing as early as next week.

Payments will continue even as civil proceedings against those responsible move forward, RECO added, emphasizing its commitment to ensuring affected agents are made whole while accountability efforts remain ongoing.