Real Estate Agent and Brokerage Complaints and Discipline in Ontario

When RECO Takes Action

This page is for registrants under the Trust in Real Estate Services Act, 2002 (TRESA). That includes salespersons and brokers, who are registered individually, and brokerages, which are responsible for the conduct of their agents and for trust accounts. A RECO complaint is also sent to your broker of record.

Illustrative example, not an actual RECO letter

“RECO has received a complaint alleging that you did not disclose to the buyer that you were also representing the seller, and that the number of competing offers was misrepresented. Please provide the transaction file and a written response to the complaint.”

RECO can respond in several ways, and they can overlap. The registrar can handle the complaint, an assessor can impose an administrative penalty, the registrar can propose action against your registration before the Licence Appeal Tribunal, or the matter can go to RECO’s discipline committee.

Who Investigates and Who Decides

Regulator: RECO, the administrative authority under TRESA. Its registrar handles registration, complaints and proposals.
Complaints: The registrar may receive complaints, request information, and try to mediate or resolve them. A registrant who receives a written request must provide the information (TRESA, s. 19).
Registrar’s options: A written warning, additional education, referral to the discipline committee, a proposal under s. 13, or other action under the Act (s. 20). RECO says a written warning stays on your file permanently and is considered if future complaints arise.
Discipline committee: Hears whether a registrant contravened TRESA or its regulations, including the code of ethics (s. 21).
Licence Appeal Tribunal: Hears registrar proposals (s. 14), appeals from discipline committee orders (s. 21(6)), and appeals of administrative penalties (s. 43.3). LAT decisions under TRESA can be appealed to the Divisional Court (Licence Appeal Tribunal Act, 1999, s. 11).

Common Issues in Real Estate Investigations

Representation and disclosure

Multiple representation, undisclosed interests in a property, and failing to explain who you act for and what services you provide.

Offers and competing bids

Misrepresenting the number or terms of competing offers. RECO publishes guidance on inquiries about the number of offers on a property.

Advertising

Misleading listings and claims about results or services. RECO says it can require corrective action, such as removing or correcting a non-compliant advertisement, by a deadline.

Trust money and deposits

Deposit handling and trust account record-keeping, which are the brokerage’s responsibility and often lead to referrals or proposals.

Integrity and supervision

Dishonesty, conflicts of interest, and a brokerage or broker of record failing to supervise its agents.

What Can Happen Next

Administrative penalty

The registrar, acting as an assessor, can impose an administrative penalty of up to $25,000 for contraventions specified in the regulations (TRESA, ss. 43.1–43.2). You may appeal by delivering a written notice of appeal within 15 days after receiving the order; otherwise the order is confirmed (s. 43.3(2)–(3)).
Discipline committee

If the committee finds a contravention, it may require education, require a brokerage to fund education for its agents, impose a fine, apply conditions, suspend your registration, revoke it if you are not entitled to registration, and award costs (TRESA, s. 21(3)). The maximum fine is $50,000 for a broker or salesperson and $100,000 for a brokerage, or any lesser prescribed amount (s. 21(4)).

A party may appeal the final order to the Licence Appeal Tribunal within 30 days after the committee sends notice of the order (s. 21(6), (9)). Conditions, suspensions and revocations take effect immediately even if appealed, unless the committee set a different date or granted a stay (s. 21(7)–(8)).
Notice of Proposal

To refuse, suspend or revoke a registration, or impose conditions you have not agreed to, the registrar must serve a Notice of Proposal with reasons (TRESA, s. 14(1)–(3)).

Deadline

You are entitled to a LAT hearing if you mail or deliver a written request to the registrar and the Tribunal within 15 days after service of the notice (TRESA, s. 14(2)). Registered mail is deemed served on the third day after mailing (s. 45(2)). Without a timely request, the registrar may carry out the proposal (s. 14(4)).
Immediate suspension

When proposing a suspension or revocation, the registrar can also suspend your registration immediately if it considers that in the public interest. If you request a hearing, the order expires 15 days after the Tribunal receives your request, unless the hearing has started and the Tribunal extends it (TRESA, s. 15).

Checklist: Responding to RECO

Documents to gather

The complaint, order, proposal or referral, and proof of when and how you received it
The full transaction file: representation and service agreements, disclosures, offers and amendments
Records of competing offers and your communications about them
Listing and advertising materials as they appeared
Deposit receipts and trust records, if money is involved
Emails and texts with clients, co-operating agents and your broker of record

Details to check in the notice

Which process applies: complaint, administrative penalty, discipline referral, or Notice of Proposal
Your deadline: 15 days for a penalty appeal or hearing request, 30 days for a discipline appeal
Who must receive your request: the registrar and the Tribunal for a proposal
Whether you or your brokerage, or both, are named

Rules and resources to consult

Trust in Real Estate Services Act, 2002, ss. 13–21, 43.1–43.3 and 45
The TRESA code of ethics regulation and other regulations
RECO guidance and bulletins on the topic of the complaint
Licence Appeal Tribunal – General Service forms, rules and practice directions
Your brokerage’s errors and omissions insurance, to ask what assistance is available

Frequently Asked Questions

Will my brokerage know about the complaint?

Yes. RECO notifies both you and your broker of record, and sends them a copy of the decision.

Can the discipline committee revoke my registration?

Yes. Under TRESA, the discipline committee can suspend your registration and can revoke it if you are not entitled to registration (s. 21(3)). The registrar can also propose revocation through the Licence Appeal Tribunal process (s. 14).

Is a written warning a disciplinary record?

It is not a discipline finding, but RECO says it stays on your file permanently and will be considered if future complaints are made.

Sources

Statutory references are to the provisions listed below, as consolidated on e-Laws when this page was prepared.

Trust in Real Estate Services Act, 2002, S.O. 2002, c. 30, Sched. C, ss. 14–15, 19–21, 43.1–43.3, 45 — e-Laws consolidation period beginning December 1, 2023; checked November 10, 2026.
Licence Appeal Tribunal Act, 1999, s. 11 (TRESA listed) — Checked November 10, 2026.
RECO, “About RECO’s complaints process” — Checked November 10, 2026.
RECO, “If you are the subject of a complaint” — Checked November 10, 2026.