$10.5M Missing: Inside Ontario Real Estate’s Biggest Wake-Up Call

Real estate lawyer Mark Morris (legalclosing.ca) joins Paul Micucci me to unpack the iPro/RECO mess: missing $10.5M from trust and commission accounts, how Ontario’s regulator reacted, and why self-regulation is facing its toughest test in years. We break down the nuts and bolts—trust funds as “sacred,” insurance caps (reportedly $4M + $4M), the Dentons forensic review, and why keeping the iPro corporate entity alive could matter for enforcing existing contracts. We also dig into the controversial mass transfer of agents to a successor brokerage and what that says about governance and accountability.

Beyond headlines, Mark flags the sleeper issue almost no one’s talking about: deferred new-build commissions (the “2% on closing”) that could be disputed as projects deliver over the next 12–24 months—potentially tens of millions at stake for agents. We look at what consumers can expect, how agents might protect themselves, the prospects of ombudsman oversight, and what meaningful reform should look like so this doesn’t happen again.