An Open Letter to the Canadian Real Estate Industry

By Todd Shyiak, EVP, Century 21 Canada

The collapse of iPro Realty (with its 2,400 agents) was more than the failure of a single brokerage. It exposed deep fault lines across Canadian real estate—too many agents without training or oversight, brokerages chasing headcount over quality, and regulators who must strengthen their guardrails. If we want to restore consumer trust and protect agents’ livelihoods, we need structural change.

Here are three of the most pressing problems—and the solutions that can move us forward.

Problem 1: Weak Oversight From RECO

The Real Estate Council of Ontario (RECO) is tasked with regulating our industry and protecting both consumers and agents. Yet the iPro collapse revealed serious gaps in oversight—especially around the management of trust funds. Consumers will likely be made whole. Agents, however, face devastating financial losses from unpaid commissions.

The fact that the offending brokers, according to RECO, will not face charges is truly criminal. If the penalty for looting your trust account is nothing more than surrendering your license and riding off to a beach retirement, other brokers may be tempted to do the same thing.

Without stronger safeguards, we risk seeing more brokerages fail and more livelihoods put in jeopardy.

Solution: Stronger Safeguards and Accountability

1. Enhanced Financial Audits and Reporting
   Increase the frequency and depth of audits for brokerages handling trust funds. Require regular disclosures of trust account balances and transactions to identify irregularities early.
2. Mandatory Trust Fund Management Training
   Require all brokers and agents to complete training on the legal and ethical handling of trust funds. Cover compliance requirements, best practices, and the consequences of mismanagement.
3. Whistleblower Protection and Reporting
   Establish anonymous reporting channels and clear protections from retaliation. Agents and employees must feel safe raising concerns about financial irregularities or unethical practices.

These reforms would bring greater transparency, accountability, and confidence to the industry.

Problem 2: Boards and Associations Rely on Headcount

Real estate boards and associations thrive on membership numbers. In Ontario, agents pay between $2,400 and $3,000+ annually—up front—to remain licensed. Whether those agents close a single deal is irrelevant; the boards collect their money either way.

This creates an industry bloated with unproductive and untrained agents. It also allows boards to step into roles that should belong to brokers—offering training, technology, and events that enable low-cost “warehouse” brokerages to avoid responsibility.

Solution: A Subscription Model That Rewards Professionalism

Replace the annual upfront fee with a monthly subscription. Of that, a portion should be paid back to brokerages for each agent who completes three or more transactions annually.

This would:

• Reward brokers who invest in mentoring, training, technology, and accountability.
• Encourage in-person meetings, workshops, and real oversight.
• Shift boards and associations away from their “agent-first” focus and toward supporting brokers’ efforts to build value and professionalism.

By aligning incentives, boards would no longer profit from sheer headcount. Instead, they would support a culture where professional, productive agents thrive.

Problem 3: Brokerages That Prioritize Quantity Over Quality

Some brokerages focus on building large agent rosters but provide limited training, mentorship, or oversight. Their low-fee models often emphasize independence, which can be attractive to part-time agents but leave others without the guidance needed to build a long-term career in real estate.

This approach can create uneven service experiences for consumers and limit opportunities for agents to grow into confident, capable professionals.

Solution: Minimum Brokerage Standards
Every brokerage in Ontario should be held accountable for delivering a baseline level of professional development and oversight. Transaction fees should be aligned with the value of the brokerage’s service offering, not simply driven by a race to the lowest cost.

Every licensed Realtor should also:

• Attend mandatory in-person training on essential skills—professionalism & ethics, market knowledge, communication & negotiation, problem solving & adaptability, legal compliance, and client service.
• Work under a manager who is available to them and actively supports client interactions, presentation and negotiating skills, and especially the preparation of offers and handling of legal matters.

Brokerages should be recognized for fostering professionalism and agent growth, not just for the number of licensees they host. This ensures clients are well served and brokerages remain financially sustainable.

Rebuilding Trust

Consumers expect Realtors to be competent, ethical professionals. Agents expect their brokerages and regulators to safeguard their livelihoods. Both expectations have been shaken.

But iPro should not just be remembered as a failure. It must be treated as a turning point. By reforming how boards collect fees, raising standards for brokerages, and strengthening regulatory oversight, we can rebuild trust in Canadian real estate.

The solutions are clear. The only question is whether we have the will to act.