Complaints go to RECO, but two limits decide most of them. Section 6 of O. Reg. 367/22 imposes a two-year limitation on referring a matter to the discipline committee, and section 40(4) of the Act gives two years from the director’s knowledge to start a prosecution. Discipline can address a Code of Ethics breach; a prosecution cannot — section 40(1)(c) excludes it, so an ethics breach is never a provincial offence. Discipline fines max at $50,000 for a broker or salesperson and $100,000 for a brokerage; the committee can also apply conditions, suspend or revoke, and those orders take effect immediately even on appeal. Appeals now go to the Licence Appeal Tribunal, not an in-house committee. RECO has no administrative penalty power — Part VI.1 is unproclaimed.
If a real estate agent in Ontario has done something you think is wrong, the complaint goes to the Real Estate Council of Ontario. What happens after that is set out in the legislation with more precision than most people expect — including several limits that will decide whether your complaint goes anywhere.
A disclosure about this page. RECO’s own website returned HTTP 403 to every automated request I made on 2 September 2026 — an affirmative block, not a missing page. So nothing here describes RECO’s internal process from RECO’s own material. Everything below is quoted from the statute and regulations, which govern regardless. For RECO’s current complaint form and timelines, go to reco.on.ca directly in a browser.
The two-year limit that ends most complaints
Section 6 of O. Reg. 367/22 imposes a two-year limitation on referring a matter to the discipline committee. It is in the regulation, not the Act, which is why it is so often missed. If the conduct is older than that, the discipline route may simply be closed regardless of merit.
There is a second two-year limit, on the prosecution side. Section 40(4) of the Act: “No proceeding under this section shall be commenced more than two years after the facts upon which the proceeding is based first came to the knowledge of the director.” Note the different trigger — that clock runs from the director’s knowledge, not from the conduct.
Discipline and prosecution are two different tracks
| Discipline | Prosecution | |
|---|---|---|
| Decided by | The discipline committee | A court |
| What it can address | Contravention of the Act, the regulations or the Code of Ethics | Offences under the Act — but not the Code of Ethics |
| Maximum fine | $50,000 broker or salesperson; $100,000 brokerage | $50,000 and/or two years less a day for an individual; $250,000 corporate |
| Other outcomes | Education, conditions, suspension, revocation, costs | Compensation or restitution on conviction (s.41) |
| Appeal to | The Licence Appeal Tribunal | The courts |
Two exclusions in section 40(1) are widely misstated and both matter:
- Paragraph (c) excludes “a prescribed code of ethics”. Breaching the Code of Ethics is not a provincial offence. It is enforced only through discipline. This is reinforced by section 38 of O. Reg. 567/05.
- Paragraph (b) carves out orders made under section 21 — you cannot be prosecuted for breaching a discipline order.
What the discipline committee can actually order
Section 21(3) gives eight powers:
- Require the broker or salesperson to obtain additional education.
- Require a brokerage to fund, or arrange and fund, education for its registrants.
- Impose a fine, subject to the maximums below.
- Suspend or postpone any of those obligations on terms.
- Apply conditions to a registration.
- Suspend a registration — for a definite period, until conditions are met, or both.
- Revoke a registration, if in the committee’s opinion the registrant is not entitled to registration under section 10.
- Fix and impose costs.
Maximum fines, from section 21(4): $50,000 for a broker or salesperson, $100,000 for a brokerage. Payment is due on the day specified or, if none, on or before the 60th day after the last order made in respect of the fine.
Orders bite immediately. Section 21(7): an order applying conditions, suspending or revoking a registration takes effect immediately even if it has been appealed. The only exceptions in section 21(8) are where the committee specified a different effective date or granted a stay. And under section 21(12), that remains true on a further appeal.
Appeals no longer stay inside RECO
Under the old Code of Ethics regulation there was an in-house appeals committee. That is gone. O. Reg. 580/05 was revoked on 1 December 2023 and nothing continues the appeals committee except a transitional wind-down provision.
Section 21(6) now sends appeals to “the Tribunal”, defined in section 1(1) as the Licence Appeal Tribunal. Section 21(9): an appeal must be commenced within 30 days of notice of the order. Section 21(11): the Tribunal “may by order overturn, affirm or modify the order of the discipline committee and may order anything mentioned in subsection (3)” — which means an appeal can result in a different penalty, not only a reduced one.
What gets published, and for how long
Section 15 of O. Reg. 367/22 requires the registrar to publish final discipline decisions, including reasons where given, on the administrative authority’s website and in at least one other manner, and to keep them available to the public for at least 60 months.
The wider public register under section 11 of O. Reg. 567/05 goes further than most people realise. It requires publication of, among other things:
| Paragraph | What must be published |
|---|---|
| 4 | That the registrar has proposed to suspend, revoke, refuse to renew or apply conditions to a registration, and the reasons, while the proposal is undisposed of |
| 10 | That a registrant is currently charged with an offence, the Act creating it, a description of the charge and the date the information was laid |
| 11 | Where a person was found guilty, the disposition including any sentence and any compensation or restitution order |
| 12 | That a matter has been referred to the discipline committee and not yet disposed of, and the reasons |
| 13 | Any information the registrar considers could assist in protecting the public |
Paragraph 12 is the one to notice: a pending, undetermined discipline referral is publishable. So is a proposal that has not yet been acted on, and a charge that has not yet been tried. Most of this must stay public for at least 60 months. If you are checking an agent, the register may show more than a list of concluded findings.
The penalty power RECO does not have
Part VI.1 of the Act creates administrative monetary penalties — sections 43.1 to 43.5. The entire Part is marked on e-Laws “On a day to be named by proclamation of the Lieutenant Governor”. It has not been proclaimed. RECO has no administrative penalty power today.
The dormant scheme is severe: a maximum of $25,000, absolute liability (section 43.2(7) removes both the reasonable-steps defence and honest mistake), no hearing required, the Statutory Powers Procedure Act disapplied, a 15-day appeal window, and unappealed orders automatically confirmed.
And there is a drafting trap in it. The enabling paragraph — section 51(1) paragraph 19.5 — is also not in force. So nothing could be prescribed under clause 43.2(1)(a). Proclaiming Part VI.1 on its own would leave it inoperable. Both have to be proclaimed together, which is worth watching for if you follow this area.
If a fine is not paid
Section 42(1): after 60 days in default the director may report the defaulter to a consumer reporting agency. Section 43(1): after 60 days the director may create a lien against the defaulter’s property, registrable against real property under section 43(3). Section 43(4) draws the line: “The director shall not initiate sale proceedings in respect of any real property against which he or she has registered a lien.”
Separately, section 39(1) lets the director apply to the Superior Court of Justice for an order compelling compliance, with an appeal to the Divisional Court.
Practical points if you are considering a complaint
- Move inside two years. Section 6 of O. Reg. 367/22 is the constraint that quietly ends the most complaints.
- Say what rule you think was broken. A Code of Ethics breach can be disciplined but not prosecuted; an Act or regulation breach can be both.
- Do not expect compensation from discipline. The section 21(3) powers are education, fines payable to the authority, conditions, suspension, revocation and costs. Compensation and restitution appear in section 41, on conviction, not in discipline.
- Check the public register before you hire. Pending referrals and proposals are publishable, not only concluded findings.
- A civil claim is a separate track. Nothing in this regime resolves money owed between you and a brokerage.
Something went wrong on your transaction and you are not sure where it goes?
There are three different tracks — RECO discipline, prosecution, and a civil claim — and they do very different things. Discipline will not get your money back; only one of the three can. Tell me what happened and I will tell you honestly which track fits, what the deadlines are, and whether it is worth your time. If the answer is that you need a lawyer rather than a broker, I will say so.
connect@jatindua.com · 437-987-1925 · Book a free consultation
Confidential. Read personally and answered within 24 hours. I never share, sell or distribute your information.
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Frequently asked questions
How long do I have to complain about a real estate agent in Ontario?
For the discipline route, section 6 of O. Reg. 367/22 imposes a two-year limitation on referring a matter to the discipline committee. That limit sits in the regulation rather than in the Act, which is why it is easy to miss, and it is the constraint that ends most late complaints. Separately, section 40(4) of the Trust in Real Estate Services Act, 2002 provides that no prosecution may be commenced more than two years after the facts first came to the knowledge of the director — a different trigger, running from knowledge rather than from the conduct.
What penalties can RECO’s discipline committee impose?
Under section 21(3) of the Act the committee may require additional education, require a brokerage to fund education, impose a fine, suspend or postpone those obligations, apply conditions to a registration, suspend a registration, revoke a registration where the registrant is not entitled to registration under section 10, and fix and impose costs. Section 21(4) caps fines at $50,000 for a broker or salesperson and $100,000 for a brokerage. Fines are payable on the date specified or, if none is specified, on or before the 60th day after the last order made in respect of the fine.
Can an agent be charged with an offence for breaching the Code of Ethics?
No. Section 40(1)(c) of the Act makes it an offence to contravene the Act or the regulations other than a prescribed code of ethics. A Code of Ethics breach is therefore not a provincial offence and can only be dealt with through discipline under section 21. This is reinforced by section 38 of O. Reg. 567/05. Section 40(1)(b) contains a second exclusion: you cannot be prosecuted for failing to comply with an order made under section 21.
What are the maximum penalties for an offence under the Act?
Section 40(3) provides that an individual convicted of an offence is liable to a fine of not more than $50,000 or imprisonment for not more than two years less a day, or both, and a corporation is liable to a fine of not more than $250,000. Section 41(1) allows a court, in addition to any other penalty, to order the person convicted to pay compensation or make restitution.
Where do appeals from a discipline decision go?
To the Licence Appeal Tribunal. Section 21(6) provides that a party may appeal a final order of the discipline committee to the Tribunal, defined in section 1(1) as the Licence Appeal Tribunal. The appeal must be commenced within 30 days of notice of the order under section 21(9). Under section 21(11) the Tribunal may overturn, affirm or modify the order and may order anything mentioned in section 21(3). RECO’s former in-house appeals committee no longer exists: it sat in O. Reg. 580/05, which was revoked on 1 December 2023.
Does a suspension take effect while it is being appealed?
Yes. Section 21(7) provides that an order applying conditions to, suspending or revoking a registration takes effect immediately even if it has been appealed. The exceptions in section 21(8) are where the discipline committee specified a different effective date or granted a stay until the appeal is disposed of. Section 21(12) preserves the same position on a further appeal from the Tribunal, subject to the Tribunal granting a stay.
Are discipline decisions published?
Yes. Section 15 of O. Reg. 367/22 requires the registrar to publish final decisions of the discipline committee, including reasons where given, on the administrative authority’s website and in at least one other manner the registrar considers appropriate, and to keep them available to the public for at least 60 months. Publication is prohibited where an order of the committee, the Tribunal or a court forbids it. Section 11 of O. Reg. 567/05 additionally requires publication of pending matters, including a referral to the discipline committee that has not been disposed of, a proposal to suspend or revoke that has not been disposed of, and current charges.
Can RECO issue an administrative monetary penalty?
Not at present. Part VI.1 of the Act, sections 43.1 to 43.5, creates administrative penalties but is marked on e-Laws as coming into force on a day to be named by proclamation, and it has not been proclaimed. The dormant scheme would allow penalties up to $25,000 on an absolute liability basis, with section 43.2(7) removing both the reasonable-steps defence and honest mistake, no hearing required, and a 15-day appeal. There is also a drafting trap: the enabling paragraph, section 51(1) paragraph 19.5, is likewise not in force, so proclaiming Part VI.1 alone would leave it inoperable.
Related reading
- Designated representation in Ontario: what changed
- Competing offers: what a seller can actually let you see
- Representation agreements: what the rules do and do not say
- Deposits and brokerage trust accounts in Ontario
Sources
Every figure on this page traces to one of these, and each was read on 1 September 2026. Primary sources only — statute, regulation, and the government or agency that administers the rule. Where I could not verify something from a primary source, the page says so instead of guessing.
- Trust in Real Estate Services Act, 2002 (formerly the Real Estate and Business Brokers Act, 2002), S.O. 2002, c. 30, Sched. C. Government of Ontario e-Laws, read 2 September 2026 through the e-Laws JSON API. Consolidation period from 1 December 2023 to the e-Laws currency date, which the currency-date endpoint gives as 28 August 2026. The words designated representative, designated representation agreement, brokerage representation agreement and multiple representation do not appear anywhere in the Act; the regulation-making power is in section 51(1), paragraphs 18 v and 19 to 19.3. Accessed 1 September 2026.
- O. Reg. 567/05, General, under the Trust in Real Estate Services Act, 2002. Government of Ontario e-Laws, read 2 September 2026. Contains the entire operative designated representation regime at sections 1, 2, 13.3.1, 13.4, 22 to 22.0.5, the competing offer rules at sections 22.7 and 22.8, the deposit rules at sections 14 to 19, the disclosure of interest rule at section 22.9 and the financial benefit rule at section 23.1. Amended by O. Reg. 357/22 and O. Reg. 235/23, both effective 1 December 2023. Accessed 1 September 2026.
- O. Reg. 365/22, Code of Ethics, under the Trust in Real Estate Services Act, 2002. Government of Ontario e-Laws, read 2 September 2026. The current code of ethics, in force 1 December 2023. The word customer appears in it zero times. Section 8 imposes the best interests duty on a registrant that represents a client; section 10 prohibits providing services, opinions or advice to a self-represented party; section 12 requires written client consent before disclosing confidential information. Accessed 1 September 2026.
- O. Reg. 367/22, Discipline Committee, under the Trust in Real Estate Services Act, 2002. Government of Ontario e-Laws, read 2 September 2026. Section 6 imposes a two-year limitation on referring a matter to the discipline committee. Section 15 requires the registrar to publish final decisions on the administrative authority website and in at least one other manner, and to keep them available for at least sixty months. Accessed 1 September 2026.
- O. Reg. 579/05, Educational Requirements, Insurance, Records and Other Matters. Government of Ontario e-Laws, read 2 September 2026. Section 19 sets the general record retention period at six years; section 20 requires a brokerage acting for a seller to retain an unsuccessful written offer, or a document containing nine prescribed particulars about it, for at least one year. Section 14 requires trust shortfalls to be reported immediately. Accessed 1 September 2026.
- O. Reg. 580/05, Code of Ethics (revoked). Government of Ontario e-Laws. Carries the notice that the regulation was revoked on 1 December 2023, by O. Reg. 365/22, section 17. This is the former code of ethics, which contained the in-house appeals committee at sections 42 to 45 that no longer exists. Accessed 1 September 2026.
- Licence Appeal Tribunal, General Service — laws, rules and decisions. Tribunals Ontario, page modified 20 February 2026. Lists the Trust in Real Estate Services Act, 2002 among the statutes the Licence Appeal Tribunal hears appeals under, and states that decisions are also posted on the Canadian Legal Information Institute website. Accessed 1 September 2026.
- Legislation Act, 2006, S.O. 2006, c. 21, Sched. F. Government of Ontario e-Laws. Section 87 defines holiday, which is how Sunday is excluded from the five business day deposit rule in O. Reg. 567/05, section 17, even though Sunday is not named in that section. Accessed 1 September 2026.
- Real Estate Council of Ontario. The administrative authority that administers the Trust in Real Estate Services Act, 2002. Every path on this website returned HTTP 403 to automated retrieval on 2 September 2026, an affirmative server-side block rather than an absence, so nothing on this page relies on RECO material. Every rule stated here is quoted from the statute or regulation on e-Laws, which is the authoritative source in any event. Accessed 1 September 2026.
About the author — Jatin Dua, Broker of Record
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke. A broker of record is the person legally accountable for a brokerage’s compliance with the Trust in Real Estate Services Act, 2002 and its regulations, so these pages are written from the rulebook I am personally answerable to.
Everything below is quoted from the statute or the regulation, with the section number, so you can check it yourself rather than take my word for it. Where the law is silent, or where a widely repeated claim turns out not to be in the legislation at all, the page says so plainly. This is general information about the rules, not legal advice about your situation. connect@jatindua.com or 437-987-1925.