The Real Estate Council of Ontario (RECO) is the delegated administrative authority responsible for registering real estate salespersons and brokerages, setting the rules they must follow under the Trust in Real Estate Services Act, 2002 (TRESA), and investigating and disciplining registrants who breach those rules. Penalties can include warnings, fines, mandatory education, suspension, or revocation of registration.
- RECO administers TRESA and regulates real estate salespersons and brokerages across Ontario, including Toronto.
- Most complaints RECO receives are resolved through informal resolution rather than a full discipline proceeding.
- Discipline penalties can include fines, mandatory education, suspension, or revocation of registration, along with costs in some cases.
- A breach of the Code of Ethics is the most common basis for RECO discipline action.
- Acting quickly and getting legal advice early materially affects how a RECO complaint is likely to resolve.
- A finding against you can affect your ability to register or work with a brokerage going forward, beyond any immediate penalty.
The Short Answer
Real estate salespersons and brokers in Ontario are regulated by the Real Estate Council of Ontario (RECO), which administers the Trust in Real Estate Services Act, 2002 (TRESA). RECO sets the standards registrants must follow, investigates complaints from the public and other registrants, and can impose a range of penalties — from a warning to revocation of registration — where it finds a breach.
What Is RECO?
RECO is a not-for-profit corporation delegated by the Ontario government to administer TRESA. It registers everyone who trades in Ontario real estate, maintains the Code of Ethics registrants must follow, and handles both registration and enforcement — including complaints and discipline. This dual role means RECO is both your licensing body and the entity responsible for investigating conduct concerns.
What Kinds of Complaints RECO Investigates
Complaints to RECO commonly involve alleged breaches of the Code of Ethics — misrepresentation, undisclosed conflicts of interest, failure to properly document an agreement, mishandling of trust funds, or conduct that misleads a client or another party to a transaction. Complaints can come from clients, other registrants, or members of the public involved in a transaction.
RECO's Complaint and Investigation Process
When RECO receives a complaint, it assesses whether an investigation is warranted, which can involve requesting records and statements from those involved. Many complaints are resolved through informal resolution. Where RECO believes a serious breach occurred, the matter can be referred for formal discipline action — see our general guide on what happens when a complaint is filed for the broader framework that applies across Ontario regulators.
As with any Ontario regulatory investigation, your response to a RECO inquiry becomes part of the record. A measured, accurate, legally reviewed response gives you the best chance of an early, favourable resolution.
Possible Penalties
RECO's enforcement powers include warnings, fines, mandatory education, suspension of registration, and revocation — along with costs in some cases. The severity of a penalty generally reflects the nature of the breach, whether it was deliberate, and whether the registrant has a prior discipline history. See our general guide on the full range of discipline penalties Ontario regulators can impose.
Your Brokerage's Role
Brokerages themselves are also registered and accountable to RECO, and a complaint against an individual salesperson can sometimes implicate the brokerage as well — for example, where supervisory failures are alleged. Understanding how your matter may affect your brokerage relationship, not just your personal registration, is part of a complete defence strategy.
Protecting Your Registration
Your registration is your ability to earn a living in real estate. If you have received a complaint notice or inquiry from RECO, treat it with the same seriousness you would any other regulatory matter — respond carefully, preserve your records, and get legal advice before submitting anything in writing.
Facing a RECO complaint or inquiry? Call 416-274-2222 for a free, confidential consultation.
Frequently Asked Questions
The Real Estate Council of Ontario is the not-for-profit body Ontario has delegated to administer the Trust in Real Estate Services Act, 2002 — it registers everyone who trades in Ontario real estate, sets the rules they must follow, investigates complaints, and disciplines registrants who breach those rules.
Anyone — a buyer, seller, another registrant, or a member of the public — can submit a complaint to RECO. RECO reviews the complaint and decides whether an investigation is warranted.
RECO can issue warnings, impose fines, require mandatory education, suspend a registration, or revoke it entirely, along with costs in some cases. The severity generally reflects the nature and seriousness of the breach.
Many complaints are resolved through informal resolution rather than proceeding to a full discipline hearing, though this depends heavily on the nature and severity of the allegations.
Yes. A discipline finding, suspension, or revocation can affect your relationship with your current brokerage and your ability to register with a new one in the future.
You are not required to have one, but given the potential consequences to your registration and career, legal advice — ideally before you respond to RECO's initial inquiry — is strongly recommended.