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Financial services

iPro Realty Ltd. to Close Amid Financial Shortfall and Inspections

Strategic Insights

— 2 min read

A Mississauga-based real estate brokerage, iPro Realty Ltd., is set to close its operations by August 19, following an inspection that revealed a significant shortfall in its consumer deposit and commission trust accounts. Employing over 2,400 agents across 17 offices in the Greater Toronto Area (GTA), the company has faced scrutiny over its financial management. According to Joseph Richer, the registrar of the Real Estate Council of Ontario (RECO), which oversees real estate professionals in the province, the shortfall in the company's accounts has decreased from $10 million to $8 million.

Key Takeaways:

  • iPro Realty Ltd., a Mississauga-based real estate brokerage, is closing its operations on August 19 due to a financial shortfall in its consumer deposit and commission trust accounts.
  • The company employs over 2,400 agents across 17 offices in the GTA.
  • The shortfall in the company's accounts has decreased from $10 million to $8 million, according to Joseph Richer, the registrar of the Real Estate Council of Ontario (RECO).
  • Real estate brokerages typically have three different bank accounts: a general trust account, a commission account, and an operating account.
  • Brokerages are required to treat consumer deposits as trust funds, not their own money.
  • Deals made with iPro Realty will continue to close in the normal course of business, with new leadership overseeing the windup of operations.
  • Consumers who have a deposit held by iPro Realty should contact their real estate agent and iPro management if assistance is needed.
  • If a deal has already closed, consumers may not be affected, but if a buyer has deposited money for a deal that hasn't closed yet, they may be at risk of losing their deposit.
  • Homebuyers and sellers can check their agreement of purchase and sale to confirm if their deposit was held by iPro Realty.
  • Consumers may be able to claim insurance coverage for their deposit by completing a Consumer Deposit claim reporting form and submitting it to RECO's insurance program.

Statistics:

  • iPro Realty Ltd. employs over 2,400 agents across 17 offices in the GTA.
  • The shortfall in the company's accounts has decreased from $10 million to $8 million.
  • Deals made with iPro Realty will continue to close in the normal course of business.
  • The new leadership overseeing the windup of operations includes representatives from RECO and two individuals approved by the council.

Sources:

  • Manuela Vega, "iPro Realty's GTA expansion hits a snag after inspectors find 'impropriety," The Star, May 2019
  • Real Estate Council of Ontario (RECO), Press Release, August 2023
  • Joseph Richer, Registrar of the Real Estate Council of Ontario (RECO)
  • Matt Mulholland, Lawyer

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