In a development sending shockwaves through Ontario’s real estate industry, provincial police have launched a formal investigation into iPro Realty Ltd. following the brokerage’s abrupt closure that has left thousands of agents and countless clients in limbo.
The Ontario Provincial Police confirmed Tuesday that its serious fraud investigation unit has begun examining the circumstances surrounding iPro’s unexpected shutdown. The Mississauga-based brokerage, which housed approximately 2,500 agents across the Greater Toronto Area, ceased operations without warning on Friday, leaving real estate professionals scrambling to secure their commissions and transfer their licenses.
“We can confirm that members of our serious fraud office are investigating matters related to iPro Realty,” said OPP spokesperson Bill Dickson in an email statement. “As this is an active investigation, we cannot provide additional details that might compromise our ongoing work.”
The Real Estate Council of Ontario (RECO), the industry’s provincial regulator, has simultaneously launched its own investigation into potential breaches of real estate legislation. RECO confirmed it is examining whether iPro violated rules regarding the handling of trust accounts and commission payments—concerns that have mounted as agents report missing funds and unpaid commissions totaling millions of dollars.
“Our primary focus is protecting consumers while ensuring real estate professionals can transition their licenses with minimal disruption,” said Joseph Richer, RECO’s Registrar. “We’re working to determine if there were violations of the Real Estate and Business Brokers Act that require enforcement action.”
The fallout has been immediate and severe. Many iPro agents report being owed substantial commissions—some in excess of $100,000—while facing uncertainty about when or if they’ll recover these earnings. RECO has temporarily waived its standard $300 transfer fee to help agents quickly move their licenses to other brokerages, but the financial damage for many appears extensive.
John Pasalis, president of Realosophy Realty and a respected industry analyst, described the situation as “unprecedented in scale” for Ontario’s real estate market.
“We’ve seen brokerages close before, but rarely with this many agents affected and certainly not with such serious allegations of financial misconduct,” Pasalis told CO24. “The real concern now is whether client funds were properly secured in trust accounts as required by law.”
iPro’s ownership structure has come under scrutiny as investigators piece together the events leading to its collapse. The brokerage was reportedly owned by Riza Bundy and operated by her husband, Steve Silverberg. Neither has made public statements since the closure, and attempts by CO24 to reach them for comment were unsuccessful.
Former iPro agents have begun organizing through social media groups and impromptu meetings to share information and explore legal options. Many have secured legal representation and are considering class action lawsuits to recover unpaid commissions.
Susan Mitchell, a real estate lawyer specializing in brokerage disputes, noted the complexity ahead. “These agents may face lengthy legal battles to recover their funds. The investigation will need to determine if this was a matter of mismanagement or if there were deliberate actions to misappropriate funds.”
The crisis extends beyond agents to affect ongoing real estate transactions. RECO has advised consumers with deposits held by iPro to contact their lawyers immediately to verify the status of these funds. While most deposits should be protected in trust accounts, uncertainty remains about whether proper procedures were followed.
The timing couldn’t be worse for Ontario’s real estate market, which has been showing signs of recovery after prolonged interest rate increases dampened activity through 2023. This disruption threatens to undermine consumer confidence just as the traditionally busy spring market approaches.
As investigations unfold and agents scramble to secure new brokerage relationships, the fundamental question remains: how could a major real estate brokerage collapse so suddenly, and what regulatory gaps might have allowed financial irregularities to go undetected? The answers may ultimately reshape oversight of Ontario’s real estate industry for years to come.
