/C O R R E C T I O N -- Real Estate Council of Ontario/

In the news release, RECO announces new financial filing requirements to strengthen consumer protection, issued 16-Jun-2026 by Real Estate Council of Ontario over PR Newswire, we are advised by the company that changes have been made. The complete, corrected release follows, with additional details at the end:

RECO announces new financial filing requirements to strengthen consumer protection

Future monthly reconciliation requirements will further enhance financial oversight

TORONTO, June 16, 2026 /CNW/ - The Real Estate Council of Ontario (RECO) is implementing new financial reporting measures to strengthen financial oversight of real estate brokerages. Effective October 1, 2026, all brokerages will be required to attest to and submit an annual financial filing to RECO.

Complemented by RECO's audit and inspections framework, this proactive oversight model will require brokerages to regularly provide documentation demonstrating proper financial management and compliance with the Trust and Real Estate Services Act, 2002. Furthermore, RECO will use this data to inform its risk framework and focus regulatory resources where risks to consumers are greatest. 

"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."

What brokerages are required to file

Starting October 1, 2026, all brokerages are required to submit an annual financial filing through RECO's MyWeb portal. These filings will require standard information regarding the brokerage's financial health and trust accounts and must include:  

• Information from the brokerage's financial statements
• Information about trust assets and liabilities
• Information about unclaimed trust monies held by the brokerage
• Compliance attestations by the broker of record

For more information, please visit the Annual financial filing web page.

"Sector leaders agree that RECO must use every tool available to protect consumers from any financial mismanagement by brokerages. 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," said Jean Lépine, RECO's Administrator and Acting CEO.

RECO is committed to working with brokerages throughout this transition. Detailed information, instructional videos and resources will be sent directly to all brokerages in the coming weeks and will also be accessible on RECO's website.

Looking ahead to 2027 

These updates align with modern regulatory risk management practices. To further strengthen financial compliance, RECO plans to introduce monthly trust reconciliation reporting requirements in 2027. RECO will provide brokerages with additional details and guidance in advance of  this next phase.

Together, the new annual requirements and future monthly submissions, underpinned by RECO's audit framework, mark a definitive shift towards a more proactive, data-informed regulator. By establishing this robust financial reporting standard, RECO aligns Ontario with regulatory best practices in other jurisdictions, better safeguarding consumer funds and reinforcing long-term confidence across the sector.

About the Real Estate Council of Ontario (RECO)

RECO is a not-for-profit corporation established in 1997 to regulate real estate agents and brokerages to ensure consumer protection in Ontario's real estate services sector. RECO administers the Trust in Real Estate Services Act, 2002.

Contact:

Tess Lin, Director of Communications & Stakeholder Relations
Real Estate Council of Ontario
[email protected]

Correction: In the last paragraph under 'What brokerages are required to file,' 'guides' was corrected to 'videos.' 

SOURCE Real Estate Council of Ontario