‘no Funds Are Missing’: Ontario Real Estate Firm Disputes Regulator’s Sanctions - Beritaja

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An Ontario real estate patient precocious penalized by the industry’s regulator is disputing the “unwarranted” sanctions placed against it.

Henein Hutchison Robitaille LLP, which has been retained by Save Max First Choice Real Estate, said successful a connection Friday that the Real Estate Council of Ontario’s “disproportionate” actions against 4 Mississauga-based brokerages are causing “serious harm” to the firm’s business, agents, brokers and clients.

Earlier this month, RECO froze the brokerages’ spot accounts complete allegations that about $2.7 cardinal was disbursed unlawfully from those accounts.

“This is not accurate. This did not occur,” Henein Hutchison Robitaille LLP’s connection reads.

“Contrary to the rumours circulating about what is successful Save Max’s spot accounts, nary costs are missing.”

RECO alleged the money was typically replaced earlier month’s end, erstwhile brokerages are required to complete a reconciliation of a existent property spot account.

The money, RECO claims, was utilized extracurricular of the position of the trust, including for indebtedness payments, spot guidance fees, taxes, in installments paper balances and vendor services.

RECO besides suspended 2 brokers and issued notices of connection to revoke registration against them and the brokerages.

Henein Hutchison Robitaille LLP said RECO is targeting Save Max successful a bid to prevention its estimation arsenic the provincial authorities considers taking power of it.

“It is good known that RECO grounded successful its regulatory obligations successful handling the iPro Realty spot money misappropriation scandal,” the rule patient said.

“Save Max is not iPro. Nor is this an opportunity for RECO to rehabilitate its estimation arsenic a competent regulator. Jobs and people’s homes bent successful the balance.”

Samantha Pinto, main regulatory modernization serviceman pinch RECO, told BERITAJA they won’t remark connected specifics to “protect the integrity” of progressive regulatory action.

“However, the misuse of Real Estate Trust Accounts costs is simply a superior breach of the rule and of nationalist trust. The rule is unequivocal: money held successful Real Estate Trust Accounts does not beryllium to brokerages,” Pinto said.

“It cannot beryllium used, temporarily aliases otherwise, for operating expenses, cash-flow management, aliases immoderate intent extracurricular what the rule expressly permits. Conduct that undermines these obligations will not beryllium tolerated.”

In November 2025, Ontario’s curate of nationalist and business work transportation said an audit of RECO identified issues pinch its practices, processes and procedures.

The audit investigated RECO’s handling of what it describes arsenic iPro Realty’s “misappropriation” of funds.

RECO ordered iPro to adjacent successful August aft shortfalls successful its user deposit and committee spot accounts were uncovered.

At the time, RECO said the shortfalls amounted to about $10.5 million, calling it a “serious breach” of the agency’s responsibilities nether the rule and to its customers and agents.

However, the province’s audit authorities recovered that iPro had told RECO its spot accounts had a $10-million shortfall about 3 months earlier RECO acted.

RECO’s insurer, Alternative Risk Services, has projected the full losses submitted arsenic claims to beryllium about $30 million.

RECO has said it’s committed to moving collaboratively pinch the state connected reforms.

“These allegations, together pinch RECO’s disproportionate action, person caused superior harm to Save Max’s business, agents, brokers, and clients,” Henein Hutchison Robitaille LLP said.

“We will respond successful the due forum.”

— with files from BERITAJA

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