When RECO Freezes a Brokerage Trust Account

Key points

• On October 23, 2026, the Real Estate Council of Ontario (RECO) issued a public advisory stating that it had issued a Freeze Order on the bank accounts of Century 21 Royaltors Realty Inc. Brokerage, located at 18 – 170 Wilkinson Road, Brampton, Ontario, L6T 4Z5.

• In the Order, the Director stated, under section 25(2) of the Act, a belief that the Order is advisable for the protection of the Brokerage's clients and self-represented parties, and that proceedings in relation to a contravention under the Act are about to be or have been instituted. This is the Director's stated basis for the Order, not a finding by a tribunal or court.

• For sellers with active listings, as of its October 23, 2026 advisory, RECO said the brokerage is still open, that your agent can continue to market your property for sale or lease, and that there is no need to file any insurance claim at this time.

• RECO had posted no update as of November 9, 2026.

What RECO announced on October 23, 2026

On October 23, 2026, the Real Estate Council of Ontario (RECO) issued a public advisory stating that it had issued a Freeze Order on the bank accounts of Century 21 Royaltors Realty Inc. Brokerage, located at 18 – 170 Wilkinson Road, Brampton, Ontario, L6T 4Z5. RECO said the Freeze Order followed a complaint that prompted an onsite inspection by RECO on October 22, 2026. RECO said that during the inspection it confirmed a shortfall in the brokerage's Real Estate Trust Account. RECO said this action did not stem from a submission in response to RECO's new annual financial filings program. RECO said it issues Freeze Orders in circumstances where consumer deposits held in trust may be impacted, and that by issuing this Freeze Order it took immediate steps to secure remaining account funds. As of the October 23, 2026 advisory, RECO said it is actively engaged in the matter, that further regulatory actions may follow, that the Freeze Order may affect ongoing transactions, and that RECO is actively reaching out to affected consumers.

What the Director's Order covers

A Director's Order dated October 23, 2026, made under section 25(1) of the Trust in Real Estate Services Act, 2002, names Century 21 Royaltors Realty Inc. Brokerage and orders any person having on deposit or controlling any assets or trust funds of the Brokerage to hold those funds or assets; the Brokerage to refrain from withdrawing any asset or trust fund from a person having it on deposit or controlling it; and the Brokerage to hold any asset or trust funds of a client, self-represented party or other person in trust for the person entitled to it. The Order states that it applies specifically to a Brampton branch of TD Canada Trust and directs the bank to hold all assets and trust funds kept for the Brokerage in any account, including its Real Estate Trust Account, Commission Trust Account and General Account. For a financial institution described in the Act, a freeze order under section 25 applies only to the offices and branches named in the order. In the Order, the Director stated, under section 25(2) of the Act, a belief that the Order is advisable for the protection of the Brokerage's clients and self-represented parties, and that proceedings in relation to a contravention under the Act are about to be or have been instituted. This is the Director's stated basis for the Order, not a finding by a tribunal or court.

The statutory power behind a freeze

Section 25 of the Trust in Real Estate Services Act, 2002 provides that the director may in writing order that assets or trust funds of a registrant or former registrant be held, that the registrant refrain from withdrawing them, or that the registrant hold a client's, self-represented party's or other person's asset or trust fund in trust for the person entitled to it. The Order applies with immediate effect from the date of service and remains in effect until the Director revokes it, the Licence Appeal Tribunal cancels the Order, the Director consents to the release of any particular asset or trust fund (or other money) from the Order, or the Superior Court of Justice provides direction or an order relating to the disposition of assets, trust funds or land affected by the order or notice. RECO had posted no update as of November 9, 2026. A person who claims an interest in a frozen asset or trust fund (or who received the order and is unsure whether it applies) may apply to the Superior Court of Justice for a determination about its disposition; the registrant may apply to the Licence Appeal Tribunal to cancel the order in whole or in part; and the director may apply to the Superior Court for directions. Ontario's general rules on how a brokerage must hold a deposit in a Real Estate Trust Account (including TRESA section 27) are explained in Wolf Law's related Insights article on brokerage trust accounts; this article focuses on RECO's Freeze Order fact pattern for Century 21 Royaltors Realty Inc. Related: Your deposit and a real estate brokerage's trust account in Ontario.

What RECO told buyers, sellers and agents

For buyers and sellers, RECO's advisory said to contact your agent or the broker of record at Century 21 Royaltors Realty Inc. RECO said that in the event you need to file a consumer deposit insurance claim, forms are available on the RECO website. For sellers with active listings, as of its October 23, 2026 advisory, RECO said the brokerage is still open, that your agent can continue to market your property for sale or lease, and that there is no need to file any insurance claim at this time. For agents, RECO said agents with outstanding commissions should file a commission protection insurance claim, and that forms are available on the RECO website. RECO's advisory lists separate contacts for questions about pending sales or purchases and commissions owed, consumer deposits and insurance coverage, brokerages involved in trades with Century 21 Royaltors Realty Inc., employees or former employees with commission questions, and agents asking how to transfer registration to a different brokerage.

How RECO describes its consumer deposit insurance

RECO says consumer deposit insurance helps protect a deposit in a real estate transaction when working with a registered real estate agent or brokerage, and that the coverage responds to events such as brokerage theft, fraud, insolvency, or misappropriation of funds, subject to the terms and conditions of the policy. RECO's consumer deposit insurance page sets out per-claim and per-event limits, says claims may be pro-rated when a single event exceeds the per-event limit, and notes the policy contains clauses that may limit the amount payable. RECO says this coverage does not respond where a transaction fails and the parties simply cannot agree on the disbursement of a deposit held in a real estate statutory trust account; in a dispute over ownership of a deposit, a brokerage can only disburse the deposit under a mutual consent and/or release form signed by both the buyer and seller, or by following instructions in a court order. RECO says that if you believe a real estate agent or brokerage may be engaged in an insolvency, theft, fraud, or misappropriation of funds that may put your transaction in jeopardy, report the situation to the RECO Insurance Department immediately, and that before making a claim you may want to contact RECO's Insurance Department for more information. RECO's materials describe completing the Consumer Deposit Insurance Notice of Claim form (which RECO's FAQ calls the Claim Reporting Form), attaching the requested documents, and sending it to RECO's Insurance Department at insurance@reco.on.ca; the FAQ says RECO forwards it to a third-party loss adjuster and that the claim should be reported as soon as you become aware of a problem with the disbursement of the deposit.

What has not been decided

Neither the October 23, 2026 advisory nor the Director's Order states that any tribunal or court has found a contravention. RECO said further regulatory actions may follow, and the Order stays in effect only until one of the events it lists occurs.

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Related: Your deposit and a real estate brokerage's trust account in Ontario | Realtor duty to explain an agreement: Painchaud v. Krimker | Deposit and rescission disputes

This article is general information about Ontario real estate law as of November 9, 2026. It is not legal advice.

Sources: RECO public advisory, October 23, 2026 (https://www.reco.on.ca/news/reco-issues-public-advisory-regarding-century-21-royaltors-realty-inc-brokerage/); Director's Order, October 23, 2026 (https://www.reco.on.ca/wp-content/uploads/Century-21-Royaltors-Realty-Directors-Order-23OCT2026-FINAL.pdf); Trust in Real Estate Services Act, 2002, S.O. 2002, c. 30, Sched. C, s. 25 (https://www.ontario.ca/laws/statute/02r30); RECO consumer deposit insurance (https://www.reco.on.ca/consumers/consumer-deposit-insurance/); RECO consumer deposit insurance FAQ (https://www.reco.on.ca/consumers/consumer-deposit-insurance/faq/); RECO insurance claims (https://www.reco.on.ca/agents-and-brokerages/insurance/make-a-claim/); RECO News (https://www.reco.on.ca/news/).

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