iPro Realtors win changes to commission settlement agreements

Former iPro Realty Ltd. brokers waiting on unpaid commissions have won changes to controversial settlement agreements issued by the insurance provider for the Real Estate Council of Ontario (RECO).

Three weeks ago – roughly three months after the brokerage’s scandal came to light – RECO and its insurer announced they would begin processing commission protection claims at a pro-rated rate of 50%.

However, many of the roughly 2,400 affected brokers raised concerns that the wording in the settlement agreements could block them from recovering the remaining balance later.

One former iPro Realty broker claimed, “The first part says it’s a full and final release, which I do not agree to accept. They keep saying it’s a standard clause, but this is not a standard situation.”

Following pushback, the agreements have now been revised. The updated language removes the alleged implication that accepting partial commission payments could prevent brokers from receiving further payments in the future. It also adds protections for consumers, ensuring money held in trust will still be paid out.

The revised agreements also remove a non-disclosure clause that brokers said would have prevented them from speaking openly about their concerns with RECO.

PayProp will keep making updates on this story as more information becomes available.

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