‘It’s devastating’: Agents take action amid financial and emotional fallout from unpaid iPro commissions

The Burlington real estate agent said she owes $170,000 in sales commissions, which has affected her ability to pay her bills and even left her in the hospital with anxiety and stress.

“It’s devastating to say the least,” she told Real Estate Magazine. “It has put me in a very bad emotional state.”

Penumarthy, now an agent with Royal LePage, is one of hundreds of agents in Ontario who have been waiting for months to get back their compensation lost in iPro’s trust account.

On August 15, the Real Estate Council of Ontario (RECO) announced that Mississauga-based iPro would close that following week a significant shortage was identified in his accounts. RECO, which oversees real estate agents and brokers in the province, has ordered the freezing of iPro’s accounts to safeguard the funds.

The result was financial turmoil for agents like Penumarthy, who worked at iPro for about a year.

In total, she estimates she’s out almost $200,000, taking into account the $30,000 to $40,000 she paid out of pocket for the staging, photography, cleaning and marketing of her ads for which she has not been compensated.

“I paid off my mortgage again, I paid taxes again. I don’t know how they expect me to pay my income taxes,” she said.

Penumarthy said one of her biggest frustrations is the lack of clarity about when officers will be paid.

Officers organize for peaceful protest

Penumarthy will join her fellow affected agents in descending on Queen’s Park in Toronto on Friday to raise awareness of the financial hardships brokers have faced since the collapse of iPro and to push for stronger government intervention.

Protest volunteer Maria Florez expects a turnout of more than 200 people.

“We need to make noise. We need to get the government to help us,” she said. “They are the only ones who can do something now, because it is very clear that RECO does not want that.”

She said RECO “won’t even talk to us,” and that the community of affected officers has requested to talk to RECO multiple times.

Florez, who works at Right at Home Realty, said she is owed $50,000 after representing a buyer who purchased a home listed by an iPro agent.

She said a community of 250 affected officers gathered on the messaging platform WhatsApp, leading to the planning of the protest.

Consumers paid while agents waited

RECO has instructed agents to file claims through Claims Pro LP. Consumers whose deposits have been lost are already being paid out professional liability insurance program.

“We brokers pay for that insurance annually out of our own pocket. Our insurance covers consumer deposits and commission deposits,” she said. “So we don’t understand why we haven’t seen a cent.”

Florez says she struggles to meet basic needs, such as vet bills and winter tires.

It’s not only financially taxing, but also emotionally, she said, citing sleepless nights and anxiety.

“We were counting on that money to pay our bills because in real estate you live paycheck to paycheck,” she said. “It has been a difficult year for the sector. I had to work very hard for that money.”

Details on the agent payout process will follow soon, RECO says

In an email to REM, RECO said that while It can sometimes take years for commission-related claims to be resolved. The insurance program manager handling the case has stated that his goal is to complete the process within several months. RECO said the insurance program manager has committed to providing the next update by the end of November.

“As with all insurance events, there is a requirement to treat claimants fairly,” a RECO spokesperson said.

Once frozen, the funds in the trust account cannot be accessed without a court order, which requires specific confirmation of the claims, RECO said.

“However, the insurance program manager is not in a position to seek court approval for commission protection claims as claims are still being received and processed. Once all claims have been received and assessed, a plan for the disbursement of funds and next steps in the process will be developed,” RECO said.

RECO said the deadline for filing a claim is two years after the date of the event, May 19, 2025. RECO has encouraged agents eligible for coverage to submit their claim forms as soon as possible to move the process forward.

Steinfeld responds to Crawford: ‘We’re going to work together’

Earlier this month, Minister Stephen Crawford publicly released a letter he wrote to RECO chairman Katie Steinfeld announcing his intention to appoint an administrator to take control and responsibility of RECO, following his review of a damning report on the industry watchdog’s handling of the iPro debacle.

Steinfeld let her go answer on Tuesday, saying: “RECO understands your intentions in seeking to appoint an administrator, and you have my commitment that we will work with the government to advance ongoing reforms and achieve these shared objectives.”

The Dentons LLP report, commissioned by RECO, identifies the organization’s troubling internal culture as a contributing factor to the troubling way in which the iPro issue was handled.

Steinfeld said RECO is addressing this head-on, with a new board-approved organizational structure developed by CEO Brenda Buchanan.

She said the plan aims to “strengthen leadership, improve internal communications and ensure clearer accountability across the organization, relying heavily on the strength of leaders who understand regulatory effectiveness, operations and the root causes of recent issues.”

She said RECO recognizes the work ahead to restore public trust.