What the iPro Realty Shutdown Means for Ontario’s Real Estate Market

Written By Jeff Dinsmore

On August 19, the Real Estate Council of Ontario (RECO) ordered iPro Realty Ltd. — one of Ontario’s largest brokerages with about 2,400 agents - to close its doors after what RECO described as an alleged “serious breach” related to a financial shortfall in trust accounts.

According to reporting by Real Estate Magazine and RECO updates among other news sources, iPro’s consumer deposit and commission trust accounts were short by as much as $10.5 million. That figure has since been reduced to under $8 million.

RECO also confirmed that iPro’s co-founders, Rui Alves and Fedele Colucci, have been permanently barred from trading real estate in Ontario.

iPro Realty’s logo

The Allegations and What We Know So Far

  • As of RECO’s latest advisory, criminal charges have not been laid. Peel Regional Police have been notified, and RECO has said it will cooperate fully if a criminal investigation is launched.

  • RECO reported that only a small number of individuals allegedly had access to the trust account funds. This means the majority of iPro’s 2,400 agents had no role in what happened and are now caught in the fallout.

  • RECO also confirmed that iCloud Realty Ltd., a newly registered brokerage, has assumed iPro’s office locations and arranged to take on agents who wish to transfer. Its broker of record, Christopher Regimbal, is a former iPro manager, and RECO emphasized there is no evidence he was involved in any wrongdoing.

What Happens to Agents and Consumers?

  • Agents: Realtors must transfer to a new brokerage to maintain their registration. RECO is facilitating these transfers, waiving or reimbursing fees. Many agents are moving to iCloud Realty under the arrangement set up by iPro. For those not wishing to join iCloud, RECO has confirmed agents can transfer to any registered brokerage in Ontario.

  • Consumers: According to RECO, pending transactions will continue to close in the normal course of business. However, once iPro closes, all representation agreements with iPro become void. Buyers and sellers will need to re-sign with their agent at a new brokerage or select another agent altogether.

The Real Victims: Clients and Realtors

The headlines talk about millions missing and 2,400 agents displaced - but the human cost is even clearer:

  • Clients: Buyers and sellers face uncertainty over their deposits. While transactions already underway are expected to close, RECO has advised that affected consumers may still need to file insurance claims through the insurer. That can mean delays and enormous stress at the worst possible time.

  • Realtors: Commissions are frozen until iPro’s accounts are reconciled and processed through the insurance program. Many agents had tens of thousands of dollars in commissions outstanding, money they may not recover in full. Beyond that, their professional reputation has taken a hit despite having no involvement in the shortfall.

Both groups are victims. Neither had control over how trust funds were managed.

Insurance Coverage and Limits

RECO confirmed that the insurance program can cover up to $8 million in aggregate - $4 million for deposits and $4 million for commissions. However, there is a $200,000 cap per individual claimant, regardless of how many transactions are involved. This means some clients and agents could still face losses above that limit.

Oversight and Accountability

RECO noted that it conducts more than 1,000 brokerage inspections each year, typically once every four years per brokerage. In iPro’s case, its last inspection was in 2021, with the next scheduled for May 2025. The shortfall was disclosed by iPro’s owners just before that inspection.

To oversee the wind-up, RECO has appointed:

  • An independent broker of record registered with RECO to complete pending transactions.

  • A chartered public accountant in good standing with CPA Ontario.

This ensures that existing deals close as planned while the brokerage winds down.

Why This Matters

This isn’t just about iPro Realty. It’s about trust in Ontario’s real estate system. Deposits are supposed to be the safest part of a home transaction. When gaps appear in trust accounts, it shakes confidence not just in one brokerage, but across the entire industry.

As a mortgage broker, I view this as another reminder of why oversight, transparency, and enforcement are non-negotiable. RECO’s next steps - and how effectively it protects consumers and agents - will set the tone for trust in Ontario real estate going forward.

Moving Forward

Here’s what’s been confirmed so far:

  • iPro is closed permanently, and its founders are barred from trading real estate (per RECO).

  • Agents are being transferred to new brokerages, with fees waived or reimbursed (per RECO).

  • Pending transactions will continue to close, though clients may need to re-sign representation agreements at new brokerages.

  • Deposits and commissions will be handled through insurance, subject to a $200,000 per-claimant limit (per RECO).

  • RECO and Peel Police remain involved, and this story will continue to evolve.

The vast majority of Ontario realtors had nothing to do with this situation. They are now picking up the pieces for their clients and rebuilding under new brokerages. Consumers should take this as a reminder: always confirm where your deposit funds are held, get it in writing, and ensure your lawyer is copied on every detail.

What to do next?

Buying a home is stressful enough without worrying about whether your deposit is safe. As a mortgage broker, my role is to help clients navigate the biggest financial decision of their lives with clarity and confidence.

If you’re buying, refinancing, or renewing your mortgage and want a second set of eyes on your deal, reach out for a free mortgage review. It could save you money - and give you peace of mind when you need it most.

Jeff Dinsmore
Mortgage Broker
FSRA # 10315
VeloMortgage.ca
TMG - The Mortgage Group

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Disclaimer

This article is for informational purposes only and is based on information released by the Real Estate Council of Ontario and reputable news outlets as of August 2025. It does not constitute legal or financial advice. Consumers and agents affected by the iPro Realty closure should contact RECO directly or seek professional legal counsel.

Jeff Dinsmore
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