Ontario's real estate regulator has suspended four affiliated brokerages headquartered in Mississauga and frozen their bank accounts, saying about $2.7 million was improperly taken from accounts meant to hold clients' money.
The Real Estate Council of Ontario announced on Tuesday that it had taken regulatory action against Save Max Real Estate Inc., Save Max First Choice Real Estate Inc., Save Max Supreme Real Estate Inc. and Save Max Ace Real Estate, all listed at 1550 Enterprise Rd. in Mississauga, as well as two brokers of record connected to them.
What the regulator found
RECO said its investigation began after it received a complaint in December 2024 and included inspections and a third-party forensic review of financial records. It found that roughly $2.7 million had been paid out of the four brokerages' real estate trust accounts for purposes not allowed under the law, including loan payments, property management fees, taxes, credit card balances and payments to vendors.
The regulator described the findings as clear and repeated breaches of the Trust in Real Estate Services Act, Ontario's real estate law. It said the money was typically put back before month-end, when brokerages must reconcile their trust accounts.
Freezing trust accounts is the strongest safeguard available to ensure that funds held in trust are protected and not accessed for purposes beyond those they are legally intended to serve.
— Real Estate Council of Ontario
What it means for buyers, sellers and agents
RECO issued immediate suspension orders and notices of proposal to revoke registration for the four brokerages and the two brokers, along with freeze orders on the brokerages' bank accounts. It said consumers and about 400 registered agents working with the brokerages will be affected.
People with money held in the frozen trust accounts, such as deposits on a home purchase, must now go through the insurance claims process to get it back, the regulator said. RECO has posted a resource page for those affected.
The regulator said it has told Peel Regional Police about its findings. No criminal charges have been announced.
In a social media post, broker of record Raman Dua said he was "cooperating fully and proactively addressing each matter raised." He said real estate transactions at the four brokerages are frozen while the regulatory process continues and that the company is working urgently to resolve the matters.
