RECO takes regulatory action against Royal Key Brokerage

The Real Estate Council of Ontario (RECO) has taken regulatory action under the Trust in Real Estate Services Act, 2002, previously the Real Estate and Business Brokers Act, 2002 (collectively “TRESA”), in relation to 2823711 Ontario Limited, trading as Royal Key Brokerage (Brokerage), and its broker of record, Rakesh Kumar (Kumar).

RECO has issued a Notice of Proposal to revoke registration against the Brokerage and Kumar based on an investigation undertaken following a consumer complaint to RECO. It is alleged that Kumar counselled and assisted clients in the preparation of false documents in connection with a real estate transaction.

As Ontario’s real estate services regulator, RECO’s mandate is to protect consumers by ensuring registrants and brokerages understand and comply with the law. RECO will not tolerate misconduct that puts consumers at risk and will take regulatory action when necessary.

Under TRESA, a registrant and brokerage subject to a Notice of Proposal has the right to request a hearing before the Licence Appeal Tribunal. If a hearing is requested, the Tribunal will determine whether the proposed revocation should proceed.

At this time, the brokerage and the real estate agents at the Brokerage may continue to trade pending the outcome of the process. Approximately 30 real estate agents are registered with the Brokerage and are not required to transfer unless and until a revocation decision is made. Currently, there is no impact on consumers’ real estate transactions.

RECO will provide further updates as appropriate.