Has The Toronto Bubble Finally, Popped?
“This is probably a case study in exactly how not to conduct regulation in the province of Ontario.” – Mark Morris, LegalClosing.ca.
In August 2025, Ontario’s real estate industry was rocked with iPro Realty, a brokerage with over 2,200 agents, was shut down. The reason? An alleged $10 million shortfall in its trust accounts, funds that should have never been touched.
We sat down with real estate lawyer Mark Morris (LegalClosing.ca) to break down what went wrong, who’s at risk, and how the industry rebuilds trust.
As Mark explained on the Fox Marin Toronto Real Estate Podcast, trust accounts are sacred:
“The entirety of our profession relies on the idea that brokerages and lawyers contain a bank account that belongs to other people, not them. They were the guardians of that account.”
The shortfall exceeded RECO’s insurance safety net, creating what Mark referred to as “systemic risk in the system.”
As Ralph noted during the episode: “The public view of real estate agents isn’t that high to begin with … and this does nothing to help. A few bad apples tarnish the entire industry.”
Trust is the profession’s most valuable currency. Consumers don’t hire Realtors for lockboxes and paperwork; they hire them based on the trust that they have their clients’ best interests at heart. When trust accounts fail, the entire industry suffers a significant blow.
RECO’s insurance program caps payouts at $4 million for consumer deposits and $4 million for commissions, with $200,000 limit per individual claim.
For buyers and sellers, the good news is that your deposits are expected to be protected. RECO’s insurance fund and recovery efforts prioritize consumer trust accounts. But protection works best when paired with awareness:
At Fox Marin, we believe clients deserve more than reassurance; they deserve transparency. That’s why we take the time to show every buyer and seller exactly how deposits are handled, safeguarded, and disbursed.
Mark predicts this will be the turning point for real estate regulation in Ontario:
As Mark put it: “We’ve failed. Our regulator has failed. But from that failure can come redemption. Sunlight is the best disinfectant, and over time, the truth will come out.”
At Fox Marin, we know our most significant value isn’t just strategy, staging, or negotiation; it’s trust, and we value and honour our clients’ trust.
If you’re entering the market and want clarify on how real estate deposits work or the process of buying or selling, we’ll walk you through every step. Contact us (we’re nice).
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This article was written by Ralph Fox, Broker of Record and Managing Partner here at Fox Marin Associates. Ralph is a Torontonian native who recognized from an early age that the most successful people in life apply long-term thinking to their investments, relationships, and life goals. It’s this philosophy, along with his lifelong entrepreneurial drive and exceptional business instincts, that help to establish Ralph as a top agent in the real estate market in downtown Toronto.