The Real Estate Council of Ontario (RECO) is implementing new financial reporting measures to strengthen oversight of real estate brokerages. Effective October 1, 2026, all brokerages will be required to attest to and submit an annual financial filing to RECO.
This proactive oversight model will require brokerages to regularly provide documentation that demonstrates proper financial management and compliance with the Trust and Real Estate Services Act, 2002. RECO will use this data to inform its risk framework and direct regulatory resources to areas where consumer risk is highest.
“Sector leaders agree that RECO must use every tool available to protect consumers from any financial mismanagement by brokerages,” said Jean Lépine, RECO’s administrator and acting CEO. “These changes will help RECO spot red flags earlier, intervene rapidly, and take timely and effective regulatory action where consumer funds and commissions are at risk.”
What brokerages are required to file
All brokerages are required to submit an annual financial filing through RECO’s MyWeb portal. These filings will require standard information regarding the brokerage’s financial health and trust accounts and must include:
- information from the brokerage’s financial statements;
- information about trust assets and liabilities;
- information about unclaimed trust monies held by the brokerage; and
- compliance attestations by the broker of record.
Looking ahead to 2027
The updates align with modern regulatory risk management practices. RECO plans to introduce monthly trust reconciliation reporting requirements in 2027 and will provide brokerages with additional details and guidance in advance of this next phase.
The new annual requirements and future monthly submissions, underpinned by RECO’s audit framework, mark a definitive shift towards a more proactive, data-informed regulator that aligns with best practices across other jurisdictions.
