RECO announces governance transition to strengthen oversight following Minister’s direction

The Real Estate Council of Ontario (RECO) is implementing a governance transition following Orders made by the Minister of Public and Business Service Delivery and Procurement, issued under the Safety and Consumer Statutes Administration Act, 1996.

The transition establishes a sequenced path from Administrator-led oversight to a reconstituted, independent, skills-based, interim five-member Board of Directors. This is the first of two phases toward returning to stable governance for RECO and re-establishing a nine-member board of directors.

Key governance changes in the Minister’s Orders include:

• Establishment of an interim five-member Board of Directors no later than December 1, 2026
• Changes in eligibility for elected members of the Board to maintain independence between the regulator and those it regulates, making the following groups ineligible from being elected to the Board of Directors:
  • Registered brokers or salespersons
  • Directors, officers, employees, members or agents of registered brokerages
  • Directors, officers, employees, members or agents of an industry association representing the interest of the registrants.
  • Nominated candidates for elected members to the Board agree in writing that, if they are elected to the Board and hold office, they will not apply for registration under TRESA during the one-year period following the day on which the candidate last ceased to hold office as a member of the Board.
• These restrictions do not apply to members of the Board appointed by the Minister.
• RECO shall establish an advisory council to represent the perspectives of registrants no later than January 1, 2027.

As part of this work, the Administrator will also update RECO’s membership model from an open to a closed model, where only the Board of Directors will be members of RECO and have voting rights. This creates a clear separation between decision-makers on consumer protection issues, and the real estate brokerages and agents that RECO oversees.

The first step in implementing RECO’s governance changes is an independent, skills-focused public recruitment process for three members of the interim Board of Directors. An independent panel, supported by a third-party recruitment firm, will recommend three candidates for the newly constituted interim Board to the Administrator. These members will be joined by two Minister-appointed members, forming a five-member interim Board that will hold office no later than December 1, 2026.

RECO’s governance transition includes the eventual return to a nine-member Board, with additional details to be shared in 2027.

“Ontario consumers deserve a regulator they can trust, and that means one that actually enforces the rules,” said the Honourable Stephen Crawford, Minister of Public and Business Service Delivery and Procurement. “We’ve already taken action, including stepping in during the iPro collapse to protect consumers and hold bad actors accountable. These changes build on that work, strengthening oversight, reinforcing independence, and making sure RECO has the tools it needs to protect people in a complex and evolving real estate market.”

“These reforms support efforts already underway to ensure RECO delivers its mandate with clarity, independence, and accountability. With these changes, the organization can sharpen its oversight of the sector and build the foundation of a modern regulator, one that acts decisively, upholds high professional standards, and earns the trust of Ontario consumers” said Jean Lépine, Administrator and Acting CEO of RECO.

These changes mark a significant step in RECO’s continued efforts to protect the integrity of the real estate services sector, while maintaining stability and public confidence throughout the transition.

Read the Minister’s Orders