New annual disclosure requirements take effect October 1 as regulator moves to rebuild consumer trust
Ontario's real estate regulator has released full details of its upcoming brokerage financial filing regime, confirming that all approximately 3,800 registered brokerages in the province must submit annual financial information to the Real Estate Council of Ontario (RECO) starting October 1, 2026.
The filings should be submitted through a reporting tool integrated into RECO's existing MyWeb portal. It will require each brokerage to provide information from its financial statements, details on trust assets and liabilities, data on unclaimed trust monies, and compliance attestations from the broker of record.
Brokerages with fiscal years ending between August 1, 2025 and July 31, 2026 face an initial deadline of October 30. Those with fiscal year-end dates on or after August 1, 2026, must file within 90 days of that date.
Non-compliance carries serious consequences, including fines, suspension, refusal to renew registration, or revocation.
"Sector leaders agree that RECO must use every tool available to protect consumers from any financial mismanagement by brokerages," said Jean Lépine, RECO's administrator and acting CEO.
"These changes will help RECO spot red flags earlier, intervene rapidly, and take timely and effective regulatory action where consumer funds and commissions are at risk,"
The announcement arrives as RECO continues working through the fallout from the iPro Realty Ltd. trust account scandal that shook Ontario's real estate sector. It saw approximately $10 million go missing from protected trust accounts and prompted the Ontario government to appoint Lépine as administrator in December 2025.
More than 1,100 commission claims have since been made available for payment, representing roughly 50% of cases where commission is owed on closed transactions.
Read more: RECO cracks down on real estate brokerage finances after trust scandals rock Ontario market
A data-driven oversight shift
Rather than replacing inspections, the filings are designed to sharpen them. RECO will use the data to inform its risk framework and focus regulatory resources where consumer exposure is greatest.
RECO will not publish pass-or-fail results. However, enforcement actions that arise from non-compliance, consistent with RECO's recent action against Save Max brokerages over unlawful trust account withdrawals, will be made public.
"Ontarians buying or selling a home should have complete confidence that deposits are protected," said Stephen Crawford, minister of Public and Business Service Delivery and Procurement.
"This initiative delivers on our government's commitment to strengthen consumer protection, improve oversight and address risks before they escalate."
Read more: RECO cracks down on four more real estate brokerages
Annual filings are framed as the foundation for a second phase: monthly trust reconciliation reporting, expected in 2027 and targeted at higher-risk brokerages rather than applied industry-wide.
The regime aligns Ontario with provinces including British Columbia, Saskatchewan and Nova Scotia, where annual brokerage filings are already standard.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
