Consumer Advisory Council

Approval Authority: Senior Management Group
Liaison: Director, Stakeholder Relations

Approval Date: April 26, 2024
Effective Date: April 26, 2024
Revised/Restated: 
Next Review Date: June 2025

Preamble

The Real Estate Council of Ontario (“RECO”) is a not-for-profit corporation that administers and enforces the Trust in Real Estate Services Act, 2002 (TRESA), and its related regulations. RECO acts in the public interest by promoting a safe and informed marketplace and administering the rules that real estate salespeople (agent and brokers) and brokerages must follow.

Under its Administrative Agreement with the Minister of Public and Business Service Delivery (“Minister”), RECO’s Board is required to establish an advisory process for direct input to the Board on issues of importance to consumers.

RECO had previously constituted a joint Consumer and Industry Advisory Group (“CIAG”). The Minister issued an order on January 3, 2024, requiring RECO to establish an Industry Advisory Council (“IAC”) to provide a forum to enable RECO to obtain advice and input from registrants to make informed decisions related to its consumer protection mandate. Concurrent with the creation of a new IAC, RECO has disbanded the CIAG and will create a separate Consumer Advisory Group.

I. Purpose

The purpose of the CAC is to provide guidance and advice to the RECO Board of Directors (“Board”) on issues pertaining to RECO’s consumer protection mandate and activities, as well as issues identified by RECO.

II. Authority

The role of the CAC is advisory. Any advice or recommendations will be reviewed and considered by the Board and may or may not result in action.

The role of the CAC does not include:

• Decision-making on strategic, operational, or policy priorities;
• Decision-making on allocation of financial and human resources;
• Representing RECO to the public, including the media and other agencies; and
• Considering or making recommendations on items that fall into the authority of RECO’s Registrar with respect to enforcement activities.

The CAC Chair will make a report to the Board on an annual basis, or more frequently, as required. Meeting minutes will be available on RECO’s website once approved by the CAC, and a summary of its work will be included in RECO’s annual report.

III. Chair, Vice Chair and membership composition

1. The Committee shall consist of a minimum of five and up to 10 members, subject to the criteria identified in section IV. 
2. The inaugural Chair and Vice Chair will be selected by RECO’s CEO and the outgoing CIAG Chair, and thereafter, the Chair and Vice Chair will be selected by the CAC from among its members. 
3. The selection of the Chair will consider the following criteria:
   • A positive orientation to RECO’s consumer protection mandate, 
   • Prior experience chairing meetings or committee and related meetings,
   • Specific governance experience, knowledge, and training,
   • Experience managing divergent thoughts and discussions,
   • Examples of impartiality or objectivity, 
   • Effective communication with multiple stakeholders, and 
   • Demonstrated decision making and time management skills. 
4. Inaugural members of the CAC will be selected by the CEO and the outgoing CIAG Chair. Thereafter, members of the committee will be selected by the RECO’s CEO, and the CAC Chair and Vice Chair, from a list of candidates provided by RECO’s management, vetted through a selection process. 

IV. Membership criteria

CAC members will be individuals with a variety of backgrounds and demonstrated experience, including but not limited to:

• A basic understanding of buying or selling real estate in Ontario as a buyer or seller; 
• Consumer advocacy or acting on behalf of consumers in the public interest;
• Experience in public service or regulated sectors; or
• Experience in communications, marketing, or consumer education.

Individuals who are considered to be non-sector, for at least a year, as defined by the following:

• Shall not be a registered agents or brokers;
• Shall not be individuals who are directors, officers, employees, or agents of registered brokerages; and 
• Shall not be members, officers, employees, or directors of industry associations. 

Members of the CAC must:

• Possess a positive orientation to RECO’s consumer protection mandate;
• Understand RECO’s mandate and have a commitment to its values, goals, and objectives;
• Represent the interests of consumers; 
• Bring a balanced approach to making recommendations that are effective, practical, and implementable;
• Be willing to adhere to confidentiality obligations and conflict of interest requirements; and
• Have time and availability to prepare for and attend CAC meetings. 

In addition to the requirements outlined above, RECO will endeavour to ensure that members of the CAC:

• Represent diversity in Ontario and include a range of perspectives (ethnic, gender, age, profession;
• Represent geographical diversity in Ontario;
• Have demonstrated credibility, integrity, and high ethical standards in their business dealing;
• Shall not have any disciplinary action recorded against them by any regulatory body;
• Are not employees of RECO nor connected by family or association with employees of RECO;
• Are not a member of the RECO Board or connected by family or association with a RECO Board member, or members of or connected by family or association with a member of any other RECO advisory committees or groups; and
• Are not connected by family or association with a RECO registrant.  

V. Terms 

Inaugural members of the CAC will be appointed to serve variable terms of two, three, or four years. Inaugural members may be eligible for reappointment at the end of their term at the discretion of the CEO and the CAC Chair subject to the term limit noted below.

The inaugural CAC Chair will be appointed to serve for a term of up to two years.

The Vice Chair will be appointed for a term of two years.

Upon the completion of the terms of the inaugural CAC members, new members will be appointed to serve a term of three years. Returning members may be eligible for reappointment at the end of their term at the discretion of the CEO and CAC Chair subject to a limit of two terms or maximum seven years.

VI. CAC Chair, Vice Chair, and member responsibilities

RECO will provide an orientation for new members, providing an overview of RECO’s Business Plan, the CAC’s mandate, and member roles and responsibilities.

The CAC Chair is responsible for:

• Liaising with the CEO or delegated RECO staff member to establish CAC agendas, reports to the Board, etc.;
• Presiding over meeting;
• Reviewing meeting minutes and materials in advance of CAC meetings;
• Meeting with the CEO and/or other delegated RECO staff, or CAC members with respect to matters before the CAC; and
• Providing a report to the Board annually on the activities of the CAC. 

The CAC Vice Chair will assume the responsibilities of the Chair in the event of the Chair’s absence.

CAC members are expected to:

• Prepare for, attend, and participate in all scheduled meetings;
• Be responsive and provide timely advice to RECO during and between meetings;
• Be sufficiently familiar with RECO’s mandate and activities to fulfill the purpose and objectives of the CAC;
• Safeguard the confidentiality of materials and discussions, including refraining from posting any details on social media or other electronic platform; and
• Refrain from using participation in the CAC to gain benefit or influence RECO or any other organization in a way that may be considered a perceived, potential, or actual conflict of interest.

Each CAC member shall sign a Confidentiality Agreement and Conflict of Interest Declaration and attest to compliance annually. CAC members may also be required to confirm acceptance of other RECO policies applicable to the CAC.

VII. Meetings and reporting

The CAC will hold at least two meetings per year. Additional meetings may be called at the discretion of the CAC Chair and CEO in the event relevant issues arise between meetings.

Meetings will generally be held virtually. While meetings can take place without a simple majority of CAC members present, formal recommendations to RECO’s Board require a simple majority of those CAC members currently presiding.

The CEO and CAC Chair are responsible for setting the agenda for CAC meetings, with input from members and management. The meeting agenda and supporting materials will be sent to each member in advance of the meeting.

Meeting minutes will be prepared by RECO for approval of the CAC at either its subsequent meeting, or via the approval of a majority all sitting CAC members by email. Upon CAC Chair and CEO approval, minutes will be posted on RECO’s website and will be provided to the Board at its next scheduled meeting.

RECO will provide administrative support to the CAC, such as scheduling meetings, distributing meeting materials, and drafting minutes.

RECO’s CEO and the CAC Chair, upon consultation, may jointly determine that it would be beneficial to the group’s understanding of a specific agenda item to invite an industry professional or other expert to attend a portion of a CAC meeting.

VIII. Termination of membership

Members may resign from the CAC at any time by giving written notice to the CAC Chair or the CEO of RECO.

Membership may be terminated by the CEO, in consultation with the CAC chair, for any of the following reasons:

• Poor attendance, 
• Ineffective engagement and contribution at CAC meetings,
• Breach of confidentiality or conflict of interest requirements, 
• No longer eligible under item IV; or
• Other reasons as determined by RECO. 

IX. Remuneration and expenses

CAC members are eligible to receive a per diems according to RECO’s non-board committee remuneration policy.

Members are able to claim out-of-pocket travel expenses to attend in-person CAC meetings in accordance with RECO’s Policy on Reimbursement of Expenses.

X. Review

These terms of reference will be reviewed every other year, or more frequently, as required.

Jeff Donnelly, LLM, Q.Med (Chair)
Term expires: July 1, 2028 
Chair term expires: July 1, 2026 
 
As Chief Consumer Protection Officer, OMVIC, Jeff is responsible for overseeing all aspects of consumer protection, enforcement, and communications. He has more than 20 years of experience in professional regulation, along with progressive leadership in the areas of consumer protection and regulatory oversight. Jeff is a licensed member of the Law Society of Ontario and holds an LL.M from Osgoode Hall Law School specializing in administrative law, as well as a postgraduate certificate in Dispute Resolution from York University and a certificate in Adjudication for Administrative Agencies, Boards and Tribunals from York University Osgoode Hall Law School. Jeff also holds a Qualified Mediator Designation from the ADR Institute of Canada (ADRIC).

Jeff’s past appointments to regulatory committees include the Registration Appeals Committee of the Ontario College of Teachers, the Discipline and Capacity Committee for the Human Resources Professional Association, OMVIC’s discipline tribunal, and Chair of the discipline tribunal for the Home Construction Regulatory Authority and the Condominium Management Regulatory Authority.  
 
Austin Spademan (Vice-chair) 
Term expires: July 1, 2026 
Vice-chair term expires: July 1, 2026 
 
Austin Spademan works as Head of Partnerships, for Bird, a micromobility company that operates in over 300 cities globally. He has eight years of operations experience with a focus on strategy, and three years in automotive with a focus on marketing. 

Outside work, Austin is a passionate city builder. He is currently serving as a board member for his local residents’ association where he takes an active role in promoting development for Toronto. He is also a board member of the Midtown Ravine Group, an association focused on protecting and improving Toronto’s ravine systems. He previously served as a consumer representative on RECO’s Consumer and Industry Advisory Group (CIAG). 

James (Daniel) Fleming 
Term expires: July 1, 2026 
 
Daniel Fleming is a retired senior air force logistics officer with many years of international and operational experience. He was born in Nova Scotia but now calls Richmond (Ottawa), Ontario home. Although officially retired, Daniel has spent many years as a public member of RECO’s Discipline and Appeals Committee as well as other organizations’ committees. Daniel previously served as a consumer representative on RECO’s Consumer and Industry Advisory Group (CIAG). 
 
Daniel volunteers with the Canadian Adaptive Snowsports (CADS) program in Calabogie teaching skiing to persons with disabilities and as a curling instructor. He has a Bachelor of Arts from the University of Manitoba and a Master’s Certificate in Project Management from Carleton University. 
 
Rahul Malhotra 
Term expires: July 1, 2027 
 
Rahul is the Manager of Pharmacovigilance at Specialty Health Network by Shoppers Drug Mart in Mississauga. He brings more than 10 years of experience in leading teams and managing regulatory processes in the pharmaceutical industry. He holds a master’s degree in Medicinal and Pharmaceutical Chemistry from Panjab University, India, and an Ontario postgraduate certificate in Business Research & Analytics from Centennial College.  
 
Ashish Patel 
Term expires: July 1, 2028 
 
Ashish Patel, from Brantford, Ontario, is dedicated to enhancing client and customer satisfaction in the hospitality industry. With over two decades of experience, he has excelled in improving customer experiences through strategic project management and exceptional customer relations. As Director of Hotel Operations at Mohawk Motel, Ashish has implemented initiatives that have significantly elevated service standards and client satisfaction. His notable achievements include leading successful projects that resulted in significant cost savings and better client service. Ashish’s career is defined by his commitment to operational excellence, team leadership, and client satisfaction. 

SS Rishad 
Term expires: July 1, 2026 
 
Rishad is a dedicated consumer advocate and Chartered Professional Accountant (CPA) with a profound commitment to enhancing financial literacy, particularly within the real estate sector, to safeguard consumer interests. Previously a consumer representative on RECO’s Consumer and Industry Advisory Group (CIAG), Rishad leverages extensive financial services experience gained from notable positions in auditing and banking at KPMG and BMO. 

With a deep-seated belief in the importance of financial literacy and empowerment, Rishad recognizes the critical need for heightened awareness and education surrounding financial aspects of real estate transactions. Rishad actively promotes transparency and accountability within the real estate market, advocating for policies that protect consumers and empower them with the knowledge needed to navigate complex transactions confidently.

Outside of his professional endeavours, Rishad is actively involved in community initiatives aimed at promoting financial literacy among youth and underserved populations, particularly among new Canadians. He frequently participates in workshops and seminars, sharing his expertise and insights to foster a more informed and empowered society. Rishad was a panelist at Broker Fair in New York City on Small Business Financing and was a delegate at the United Nations Climate Change Conference in Denmark. 

Location
Online (Microsoft Teams)

Present
Jeff Donnelly, Chair
Austin Spademan, Vice-chair
Dan Fleming
Rahul Malhotra
Ashish Patel
SS Rishad

RECO Staff
Michael Beard, CEO
Kym Robertson, Director, Stakeholder Relations (minutes)

MPBSDP observer
Karin Eisen

1. Call to order

The Chair called the meeting to order at 9 a.m.

2. Welcome and roundtable introductions

The Chair welcomed CAC members and thanked them for their interest in participating in the CAC. 

RECO’s CEO provided some background on the creation of the CAC and the evolution from the Consumer and Industry Advisory Group (now dissolved) into the new Consumer Advisory Council and Industry Advisory Council.  

Participants introduced themselves and shared an overview of their current roles and experience.

3. Kickoff

Administrative items
RECO’s CEO referred council members to the advance materials shared, including the CAC Terms of Reference and the process for providing remuneration to CAC members. council remuneration. He further offered a high-level overview of the applicable Conflict of Interest Policy and confidentiality requirements, as well as requirements under RECO’s social media policy.

4. Initial Q&A and impressions of CAC/Industry issues for potential IAC consideration
The Chair led a round-table discussion seeking initial impressions from members about their participation in the CAC. RECO management provided a brief summary of key consumer protection components of the recent legislative and regulatory updates that came in force in December 2023 under the Trust in Real Estate Services Act, 2002 (TRESA), including:

• The RECO Information Guide (a copy of which was provided to council members), which provides a plain language explanation to consumers of their rights and responsibilities, and those of a real estate agent.
• The elimination of the complex customer/client relationship structure into a much clearer definition in that the consumer is either represented by a real estate agent, or self-represented.

The CAC noted that, given the challenges in the housing market, there is a greater and potentially increasing involvement of real estate agents in the rental market; the council was supportive of greater information to be made available to consumers to help them understand their rights and responsibilities when working with a real estate agent in the rental of real estate. 

Other issues for potential future discussion include:

• greater clarity in some of the forms provided to consumers in transactions;
• specific disclosures in forms about fees and taxes (particularly taxes on commissions) and whether this is made sufficiently clear to consumers;
• information for consumers about “cash for homes” offers, taking into account the limits of RECO’s mandate when dealing with developers or other non-registrants looking to purchase properties for development or renovation; and
• clarity about what happens to consumer deposits when a transaction fails.

5. RECO brand positioning strategy

RECO’s CEO kicked off a discussion about the importance of RECO differentiating itself as the regulator from among the many different organizations that exist in the real estate services industry in Ontario. 

The Director of Stakeholder Relations briefly recapped RECO’s work to date on a branding initiative. A consulting company was engaged, the firm conducted interviews with key stakeholders, and recommended a refined brand positioning. This recommendation was to shift RECO’s positioning closer toward, but not exclusively for, consumers – clarifying its important role in consumer protection for those engaging in the sale or purchase of real estate.

Key portions of the narrative to support the brand positioning were presented to the CAC for discussion. There was strong support among CAC members for the overall direction of the brand narrative. The particular elements that stood out to members were: the specific language “we protect consumers” along with an emphasis on clarity, transparency, and fairness. 

The council noted that registrants have multiple bodies to support their interests and agendas – such as real estate associations including OREA – so the importance of RECO as the regulator supporting consumers is important.  

Feedback from the CAC included that RECO should consider that the shift in language does not push expectations of RECO beyond its regulatory mandate. While there was further discussion of personalizing the brand narrative to speak exclusively to consumers (what you can expect from RECO), RECO management noted that it has multiple stakeholders and is unable to speak exclusively to one of them at the expense of others. Further CAC feedback was that the brand narrative merits a greater public profile, and RECO management noted that this is the intended goal of this process. 

6. Determine next meeting date

Members were asked about their interest in meeting in person, however there was consensus the next meeting to take place virtually. 

One member expressed a desire for a greater understanding of RECO’s Board’s expectations of the council. The council was reminded that the CAC’s role is advisory, and the process of that advice flowing to the board through the CAC Chair is set out in the CAC Terms of Reference. For certainty, the CAC is not a committee of RECO’s board of directors. The Chair confirmed his intention to involve the council in finalizing his report to RECO’s Board. The Chair and RECO staff agreed to discuss and follow-up on this item at the next CAC meeting. 

7. Closing remarks and adjournment

The Chair thanked all for their active participation and closed the meeting at 11:45 a.m. 

ACTION: RECO management will notify members of the next meeting date.