Minister’s Order

WHEREAS subsection 5.1(1) of the Safety and Consumer Statutes Administration Act, 1996 (SCSAA) provides that, subject to section 13.7, the Minister of Public and Business Service Delivery and Procurement (the Minister) may, by order, appoint an individual as an administrator of a designated administrative authority for the purposes of assuming control of it and responsibility for its activities;

AND WHEREAS the Real Estate Council of Ontario (RECO) is designated under SCSAA as the sole administrative authority for the purpose of administering the provisions of the Trust in Real Estate Services Act, 2002 and the regulations made under that Act;

AND WHEREAS an independent audit of RECO’s handling of the iPro Realty Ltd. (iPro) matter carried out by Dentons Canada LLP (Dentons) identified significant issues with RECO’s practices, processes, and procedures and serious concerns about the organizational culture within RECO;

AND WHEREAS the Dentons audit findings and recommendations are detailed in the final audit report dated October 30, 2025 (the Report);

AND WHEREAS the Report findings raise questions about RECO’s ability to restore public confidence in the real estate services sector;

AND WHEREAS I am of the opinion that it is advisable to exercise my power to appoint an administrator for RECO in the public interest because the appointment is necessary to prevent serious harm to the interests of the public and consumers by ensuring that the serious concerns identified with RECO’s culture and governance processes are fully addressed and that the necessary steps are taken promptly to properly implement the relevant recommendations from the Report;

AND WHEREAS I provided 15 calendar days’ notice to RECO’s board of directors (the board) of my intention to appoint an Administrator, advised the board that it may provide a response, and reviewed and considered the response provided by the board;

NOW THEREFORE pursuant to section 5.1 of the SCSAA, I hereby make the following Order:

  1. Jean Lépine is hereby appointed as the administrator for RECO (the Administrator), effective as of the date this order is made.
  2. The appointment is at the pleasure of the Minister and shall remain in effect until it is terminated by order of the Minister.
  3. The Administrator shall have the exclusive right to exercise all the powers and perform all the duties of the board, officers, and members of RECO.
  4. RECO’s board members cease to hold office upon the appointment of the Administrator.
  5. The Administrator shall perform their duties and carry out their activities in accordance with, and subject to, the Terms of Reference established by the Minister.
  6. The Administrator shall be paid by RECO in accordance with the remuneration rate and terms set out in this Order, as follows:
  • The Administrator shall be remunerated at the rate of $2,000 per diem, for up to 250 calendar days, beginning as of the date this Order is made, and up to a maximum remuneration rate of $500,000.
  • The per diem rate is based on a 7.25 hour day and five (5) day work week. Per diem is to be interpreted as the amount payable for work periods in excess of three hours. When less than three hours of work is involved, one-half of the established per diem rate must be paid.
  • Only one per diem payment shall be made to the Administrator per calendar day.
  • In addition to the remuneration set out above, the Administrator shall be reimbursed for reasonable work-related expenses that are incurred while carrying out the duties of that position, to a maximum of $35,000, in accordance with RECO’s Reimbursement of Expenses Policy as it read on the day before this Order was made.
  1. RECO shall pay for any external support required and obtained by the Administrator over the term of the appointment that is reasonably necessary to enable the Administrator to carry out their mandate.
  2. The Administrator shall provide updates on the progress of their work to the Minister upon request and report to the Minister as the Minister requires.
  3. The Minister may issue directions to the Administrator with regard to any matter within the jurisdiction of the Administrator, and the Administrator shall carry out any such directions.
  4. For clarity, in the event of conflict, this Order, including the Terms of Reference established by the Minister under paragraph 5 and the Minister’s directions described in paragraph 9, prevails over RECO’s administrative agreement and RECO’s constating documents, by-laws, and resolutions.
  5. This Order comes into effect the day it is made.

Original signed by

The Honourable Stephen Crawford

Minister of Public and Business Service Delivery and Procurement

Date issued

28 November, 2025.

Terms of Reference

Administrator For Real Estate Council Of Ontario

Introduction

Pursuant to an order made under section 5.1 of the Safety and Consumer Statutes Administration Act, 1996 (the SCSAA) dated November 28, 2025 (the Order), the Minister of Public and Business Service Delivery and Procurement (the Minister) has appointed an Administrator for the Real Estate Council of Ontario (RECO).

Accountabilities, Powers, and Responsibilities

Minister

The Minister is responsible for RECO’s fulfillment of its Statutory Mandate.

Deputy Minister

The Deputy Minister of the Ministry of Public and Business Service Delivery and Procurement (the Deputy Minister) is accountable for the performance of the ministry in supporting this appointment, and for carrying out the roles and responsibilities assigned by the Minister.

The powers and responsibilities of the Minister set out in the Order and in this Terms of Reference may be exercised by the Minister, the Deputy Minister, or another authorized official of the Ministry of Public and Business Service Delivery and Procurement (the ministry).

Administrator

The Administrator is a statutory appointee and shall not be deemed to be an employee, servant, agent, or partner of His Majesty the King in right of Ontario (the “Crown”), or in a joint venture with the Crown.

The Administrator is accountable to the Minister for carrying out the duties and responsibilities of the Administrator set out in the Order and in this Terms of Reference, and for RECO’s performance in fulfilling its Statutory Mandate.

Pursuant to the Order, the Administrator shall have the exclusive right to exercise all the powers and perform all the duties of RECO’s board of directors (the board), officers, and members. This includes, without limitation, providing direction to RECO’s officers, employees, and agents, and exercising any other powers and performing any other duties of the board and CEO that are set out in RECO By-law No. 1, as it read the day before the Order was made.

The Administrator has the same rights as the board in respect of documents, records, and information held by RECO, pursuant to subsection 5.1(7) of the SCSAA. Further, the Administrator has the same rights as the CEO, officers, and senior management in respect of documents, records, and information held by RECO.

Objectives

The Administrator shall oversee and maintain RECO’s operations to ensure that RECO is equipped to effectively regulate real estate salespersons, brokers, and brokerages and is fulfilling its consumer protection mandate.

In addition, the Administrator shall implement measures to bring about systemic change within RECO and to restore public trust and confidence in RECO and the real estate services sector. The Administrator shall begin to implement effective changes to RECO’s governance and organizational structures, culture, and operational policies to achieve outcomes that address the relevant recommendations from the Report and any other priorities, as identified by the Administrator.

The Administrator shall, to the best of the Administrator’s abilities, work with the insurer and related parties promptly to support those financially impacted.

Deliverables and Reporting

The Administrator shall deliver an implementation plan to achieve the stated objectives to the Minister no later than March 31, 2026.

The Administrator shall deliver an initial written report to the Minister no later than June 30, 2026, and a final written report no later than December 31, 2026. The final report will be made public.

The Administrator will participate in regular meetings to provide updates and discuss issues related to the Administrator’s work with the Minister and/or the Minister’s delegates, including the Deputy Minister and Assistant Deputy Minister of the Policy, Planning and Oversight Division.

The Minister may, from time to time, direct the Administrator to provide additional updates on the progress of the Administrator’s work within a time specified by the Minister.

On a date to be determined by the Minister, the Administrator shall develop a governance transition plan to guide the re-establishment of the board and executive leadership and share it with the Minister.

Ethical Obligations and Conflict of Interest

The Administrator shall:

  • Fulfill the role of Administrator in a professional, ethical, and competent matter.
  • Comply with all applicable federal, provincial, and municipal laws and by-laws while exercising their powers and performing their duties.
  • Fulfill the duties of the appointment in a professional, ethical, and competent manner and avoid any actual, perceived, or potential conflict of interest. In particular, and without limiting the generality of the foregoing obligations, the Administrator shall:
    • Not engage in any activity that creates a conflict of interest (actual, perceived, or potential), in the sole opinion of the Minister (or Minister’s designate).
    • Disclose to the Minister (or Minister’s designate) without delay any situation or potential situation that may be reasonably interpreted as an actual, perceived, or potential conflict of interest.
    • Declare to the Minister (or Minister’s designate) at the earliest opportunity any personal or pecuniary interest that could raise conflict of interest concerns.
    • Not use or attempt to use the appointment for personal benefit.
    • Avoid creating the appearance that preferential treatment is being given to a person or entity that could benefit from the treatment.
    • Not participate in or attempt to influence decision making as an Administrator if the decision could result in an actual, perceived, or potential benefit to the Administrator.
    • Not accept a gift that could influence, or that could be seen to influence, the Administrator in carrying out the duties of the appointment.
    • Not use or disclose any confidential information, either during or after the appointment, obtained as a result of the appointment, for any purpose unrelated to the duties of the appointment, except if required to do so by law or authorized to do so by the Minister.
    • Not use RECO’s premises, equipment or supplies for purposes unrelated to carrying out the duties of the appointment.
    • Comply with such additional requirements, if any, established by the Minister.
  • The Minister’s designate for the purpose of any conflict of interest declarations is the Deputy Minister.

Confidentiality and Protection of Privacy

The Administrator acknowledges that the Ministry is bound by the provisions of the Freedom of Information and Protection of Privacy Act (FIPPA). Subject to FIPPA, the confidentiality of any Minister’s directions to the Administrator and all information obtained by the Ministry in connection with the powers and duties of the Administrator shall be at the discretion of the Ministry both during and after the appointment. Except as required by law or court or tribunal of competent jurisdiction, no such confidential information shall be used by the Administrator or divulged in any form without the prior written consent of the Ministry.

In exercising powers and performing duties, the Administrator shall comply with RECO’s Access and Privacy Code (Code), as it read the day before the Order was made or, if the Minister approves amendments to the Code, with the Code as amended.

Records created in the course of the Administrator’s work, including any records created by the Administrator’s external resources or agents, will remain in RECO’s custody and control. The Ministry will not have custody or control over any records or other materials produced by or for the Administrator or provided to the Administrator in the course of the Administrator’s work, with the exception of:

(a) any plans and reports prepared by the Administrator and delivered to the Minister;

(b) any records that the Administrator chooses to provide to the Minister or ministry in the Administrator’s sole discretion throughout the course of the appointment.

The Administrator will ensure that no personal or confidential information is included in the Administrator’s final report to the Minister, which will be made public.

The Administrator will ensure that any individuals and stakeholders consulted in the course of carrying out the Administrator’s duties are made aware that the information they provide to the Administrator may be included or reflected in the Administrator’s reporting to the Minister and that the Administrator’s final report will be made public but shall not include personal or confidential information.

Communications Protocol

Any communications relating to the Administrator’s role as Administrator shall be arranged solely by the ministry. The Administrator shall not make any public statements relating to their role as Administrator without the Minister’s prior written consent.

Remuneration Rate and Terms

The Administrator shall be paid by RECO in accordance with the remuneration rate and terms set out in the Order, as follows:

  • The Administrator shall be remunerated at the rate of $2,000 per diem, for up to 250 calendar days, beginning as of the date the Order is made, and up to a maximum remuneration rate of $500,000.
  • The per diem rate is based on a 7.25 hour day and five (5) day work week. Per diem is to be interpreted as the amount payable for work periods in excess of three hours. When less than three hours of work is involved, one-half of the established per diem rate must be paid.
  • Only one per diem payment shall be made to the Administrator per calendar day.
  • In addition to the remuneration set out above, the Administrator shall be reimbursed for reasonable work-related expenses that are incurred while carrying out the duties of that position, to a maximum of $35,000, in accordance with RECO’s Reimbursement of Expenses Policy as it read on the day before the Order was made.

RECO shall pay for any external support required and obtained by the Administrator over the term of the appointment that is reasonably necessary to enable the Administrator to carry out their mandate.

The Administrator shall forward their invoices to RECO for payment. Invoices must include an itemized statement that includes hours of service performed and copies of receipts for any eligible expenses that are reasonably incurred in the course of carrying out their duties as Administrator. Copies of all invoices shall be sent to the ministry, at TRESA@ontario.ca, on a monthly basis, or more frequently if directed to do so by the ministry.

Termination and Notice

As set out in the Order and pursuant to subsection 5.1(4) of the SCSAA, the appointment of the Administrator is at the Minister’s pleasure and shall remain in effect until it is terminated by order of the Minister.

The Administrator may provide notice of their intent to resign by giving the Minister at least 60 days’ written notice of the intended resignation date or such other notice as the Minister considers appropriate. Following receipt of this notice, the Minister will determine whether to order the termination of the Administrator’s appointment on a date determined by the Minister. For clarity, until the Minister terminates the appointment under subsection 5.1(4) of the SCSAA, the Administrator’s appointment continues to be in effect and the Administrator shall continue to carry out their duties and exercise their powers, subject to the Minister’s directions, if any.