Industry groups are lauding the Ontario government’s decision to appoint an administrator to watch over the embattled Real Estate Council of Ontario.

Jean Lépine was started work Monday as the administrator after the province heeded calls to rein in RECO following the shutdown of iPro Realty for mishandling millions of dollars worth of client and broker funds.

“This decision by the provincial government will ensure RECO can get back to the basics of fulfilling its consumer-protection mandate,” said Ontario Real Estate Association President Cathy Polan.

“Ontario’s real estate regulatory framework must protect both consumers and registrants, safeguarding families making the biggest financial transaction of their lives and shielding Ontarians from unethical behaviour.”

The province’s move came after Public and Business Service Delivery and Procurement Minister Stephen Crawford gave the regulator 15 days to respond to official notification that he was planning to appoint the administrator in its place.

Katie Steinfeld, RECO’s board chair told Crawford that RECO had begun to address his concerns and defended the regulator’s handling of the iPro case. But Crawford still decided to act.

“Given the severity of these concerns, to prevent serious harm to the interests of the public and consumers, I have determined it is necessary to appoint an administrator to assume control of and responsibility for RECO, including all powers and duties of the board of directors, officers and members of RECO,” Crawford wrote in a letter published on social media.

The Ontario Real Estate Board said it looks forward to working with Lépine.

“This decision by the provincial government reflects the seriousness of the situation and will help restore public confidence,” said OREB.

RECO closed iPro months after the regulator found that $10.5 million had been withdrawn, allegedly illegally, from the former trust accounts. The company later paid back $3 million and co-founders Rui Alves, who is a former RECO board member, and Fede Colucci agreed never to apply to certify a brokerage again or serve as brokers. As a result, they were not fined or charged.

Joseph Richer left his post as RECO’s registrar following criticism for letting RECO off lightly. But industry veterans have contended that he was not the only RECO official who know of iPro’s mishandling of client and broker funds.

Pictured: Former iPro Realty listing.

Photo: Realtor.ca