RECO says “Will continue to act decisively in public interest”

RECO recently took action against four brokerages of Save Max and made the following allegations:

RECO takes regulatory action involving four Save Max brokerages

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 four Save Max brokerages and two individuals associated with those brokerages.

Summary of Key Findings

Action is being taken based on investigations of brokerages associated with Save Max, prompted by concerns raised in a complaint to RECO in December 2024. Inspections, investigations, and a third-party forensic review of financial records completed in January 2026 verified that:

Approximately $2.7 million was disbursed unlawfully from four brokerage Real Estate Trust Accounts, demonstrating clear and repeated breaches of TRESA.

Unlawfully disbursed funds were typically replaced before month-end, when brokerages are required to complete a reconciliation of the Real Estate Trust Account.

The unlawfully disbursed funds were used outside of the terms of the trust, including for loan payments, property management fees, taxes, credit card balances and vendor services.

Inspections of other Ontario Save Max brokerages found no significant issues with respect to the administration of each of those brokerages’ respective Real Estate Trust Account.

Regulatory Actions Being Taken

Real Estate Trust Account requirements exist to protect consumers and ensure that real estate transactions close as intended. These funds must be held in trust strictly for their designated purposes: to secure deposits, facilitate the completion of transactions, and be disbursed in accordance with the terms of the trust. They are not to be used for operating expenses, cash flow support, investments, or any other purpose outside what the law expressly permits.

Any deviation from these requirements, intentional or otherwise, is a serious contravention of TRESA. It undermines consumer confidence, jeopardizes the integrity of the transaction process, and ultimately damages the trust the public places in real estate agents.

As a result of the findings, RECO has taken regulatory action, including issuing Notices of Proposal to Revoke Registration, Immediate Suspension Orders, and Freeze Orders against the individuals and brokerages listed below. RECO has also notified the Peel Regional Police about its findings.

Safeguarding Funds Held in Trust

On February 3, 2026, RECO issued Freeze Orders on the bank accounts of the aforementioned brokerages. These orders were issued to protect funds held in the brokerages’ accounts and to prevent withdrawals while safeguarding consumer deposits.

Freezing trust accounts is the strongest safeguard available to ensure that funds held in trust are protected and not accessed for purposes beyond those they are legally intended to serve. To access the funds, individuals must now go through the insurance claims process.

As the province’s real estate services regulator, RECO is taking the necessary steps to ensure both consumers and registrants are protected.

Save Max retained law firm Henein Hutchison Robitaille LLP which questioned the actions taken by RECO and issued the following statement to Y Media:

In relation to Save Max Real Estate Brokerage, Inc

Toronto — Save Max has more than 1,100 real estate agents and 50 real estate brokerages in Canada, serving thousands of clients each year in the purchase and sale of their homes.

The Real Estate Council of Ontario (RECO) recently took unwarranted regulatory action against Save Max, creating the impression that $2.7 million was misappropriated from the brokerage trust accounts. This is not accurate. This did not occur.

Contrary to the rumours circulating about what is in Save Max’s trust accounts, no funds are missing.

It is well known that RECO failed in its regulatory obligations in handling the iPro Realty trust fund misappropriation scandal. Save Max is not iPro. Nor is this an opportunity for RECO to rehabilitate its reputation as a competent regulator. Jobs and people’s homes hang in the balance

These allegations, together with RECO’s disproportionate action, have caused serious harm to Save Max’s business, agents, brokers and clients.

We will respond in the appropriate forum.

• Henein Hutchison Robitaille LLP
  
  

Y Media approached RECO to give their viewpoint on Save Max lawyers statement. RECO replied to Y Media and made the following statement:

To protect the integrity of active regulatory action, RECO cannot comment on the specifics of this matter.

However, the misuse of Real Estate Trust Accounts funds is a serious breach of the law and of public trust. The law is unequivocal: money held in Real Estate Trust Accounts does not belong to brokerages. It cannot be used, temporarily or otherwise, for operating expenses, cash-flow management, or any purpose outside what the law expressly permits. Conduct that undermines these obligations will not be tolerated.

RECO will continue to act decisively in the public interest, protecting consumers and registrants.

Stay tuned to all platforms of Y Media, we will keep up updated on any developments.