RECO lost its way — now the industry has a chance to reset

The news of RECO being placed under a provincial administrator has sent shockwaves through Ontario’s real estate community, though the truth is this moment has been years in the making. 

Many are calling it a fiasco. I see it as overdue — a moment of clarity about the state of our profession and the structures meant to govern it. We should not be surprised. And more importantly, we should not be afraid. 

Change only feels threatening when we’ve ignored the warning signs, and as practitioners, we must be honest with ourselves: we have not always shown up the way a self-regulated profession requires.

A mandate lost, and a profession sidelined

RECO lost sight of its dual mandate, and I say this bluntly because it needs to be said. Protecting consumers is the cornerstone of our industry, but protecting the integrity, competence and advancement of the professionals who serve those consumers is equally essential. That balance is what builds a healthy, trusted, self-regulated profession.

Somewhere along the way, RECO stopped balancing anything. Instead of being a partner in raising standards, it evolved into a bureaucratic engine of penalties and fines — heavy-handed on enforcement, completely absent when it came to innovation. 

“The industry slowly stepped back from the conversations that shape our future. Fewer agents spoke up. Fewer participated. Fewer cared about the health of the profession beyond the next deal.”

And worst of all, it became deeply disconnected from the realities we face every day in the field. Roles were staffed with individuals who have never actually practised in this industry, people who do not understand how a real transaction unfolds, how consumers behave or what challenges Realtors navigate in protecting their clients.

That disconnect created a vacuum. Agents became frustrated not because they opposed accountability, but because they felt unheard and unrepresented. The public grew confused, unsure whether RECO was protecting them or simply policing the industry for revenue. Eventually, the government stepped in not because the system was functioning well, but because it failed from the inside. And that failure came at a staggering cost — millions in mismanaged funds and lost confidence.

A shared responsibility for the decline

This wasn’t a theoretical problem. It affected real people — Realtors whose livelihoods depend on a stable regulatory environment, and consumers who rely on trust and transparency when making the biggest financial decisions of their lives. That trust has been shaken, and we need to acknowledge that openly.

But we must also be honest with ourselves, because we contributed to this outcome too. Practitioner engagement didn’t just decline; it collapsed. Too many Realtors stopped following the procedures and protocols designed to protect both the consumers we serve and us. Corners were cut, and shortcuts were rebranded as “creativity.” One by one, the fundamentals of good practice were pushed aside.

The truth is, many agents only paid attention to RECO when a notice of complaint landed in their inbox, not because they were being targeted, but because they were no longer operating with the level of discipline, documentation and compliance our profession requires.

We cannot blame the regulator for everything when our own habits drifted so far from acceptable professional standards. The industry slowly stepped back from the conversations that shape our future. Fewer agents spoke up. Fewer participated. Fewer cared about the health of the profession beyond the next deal. Our collective voice weakened, and in that vacuum, leadership structures drifted away from their core purpose. This moment requires humility, accountability and the willingness to admit the problem was not only external — it was also internal.

“This moment, uncomfortable as it may feel, is not a punishment. It is a call to progress, accountability and higher standards.”

But in every disruption lies opportunity. I welcome this change because it forces us to confront a hard but simple truth: the industry needs an overhaul, and the reset must begin with us. This moment, uncomfortable as it may feel, is not a punishment. It is a call to progress, accountability and higher standards.

It also underscores something we don’t talk about enough: the environment in which a Realtor practises matters deeply because it directly shapes the experience and protection consumers receive. As regulations tighten, technology accelerates, and the stakes in real estate rise, the public wants more than a salesperson. They want a professional backed by a strong brand, strong leadership, real training and a brokerage culture built on accountability.

Consumers may not see what happens behind the scenes, but they absolutely feel the difference. It shows up in the quality of advice they receive, the competence displayed in complex situations, the professionalism during negotiations and the overall value proposition of the Realtor they choose to trust.

Brokerages that prioritize compliance, invest in real education, embrace technology responsibly and uphold high ethical standards produce professionals who serve the public with excellence. Brokerages that cut corners create risk — and that risk lands on the consumer. And now more than ever, people are paying attention.

Leadership, standards and the path forward

This regulatory shakeup is also a reminder that strong leadership at the brokerage level is not just beneficial — it is protective. When RECO falters or hesitates, brokerage leadership must step in with clarity, direction and support. When the regulator struggles to define the path forward, real industry leaders must elevate competency from the inside out.

A brokerage’s responsibility is not to shield agents from the consequences of poor practice, nor to celebrate mediocrity. Its responsibility is to insist on higher standards and to ensure that the professionals representing its name uphold the trust of consumers.

The reality is that Canadians today want real estate advisors who genuinely care about them, communicate clearly, understand their concerns, act with integrity and provide informed guidance rooted in both human understanding and professional excellence. They are watching how we behave as a profession, and they are watching how we respond to these changes. This is our opportunity to restore confidence, reset expectations and elevate the entire industry.

The RECO shakeup is not a crisis for those who embrace truth, accountability and leadership. It is an inflection point — a moment to rethink how we train, how we practise, how we regulate and how we serve the public. It is a chance to rebuild this profession not on fear of fines, but on pride in our craft. To recognize that self-regulation is a privilege. And to prove, through our collective actions, that the real estate profession in Ontario deserves the respect, trust and confidence of the public.

The future will belong to professionals who lead with integrity, communicate with purpose, operate with discipline and align themselves with organizations committed to excellence. The noise will always be there, but the Realtors and brokerages who rise above it will define the next chapter of Canadian real estate.