What RECO Is Disciplining Agents For in 2026 — and How to Never Be on That List
- Ricky Rathore
- Aug 8
- 3 min read
Updated: 3 days ago
RECO publishes every enforcement action it takes. Read them like a map of where careers go to die. The same handful of mistakes show up again and again — and every one of them is avoidable.
Trust money is the fastest way to lose your licence
The single most common reason RECO revokes a registration is deposits: money into the trust account late, disbursed without authority, or reconciliations that don't add up. It isn't glamorous and it ends careers.
Deposits hit the brokerage trust account on time. Every time.
You never move trust money without written authority.
If a deposit is short or late, your Broker of Record hears about it that day — not at month-end reconciliation.
Letting a buyer into a house alone
A quiet epidemic in the discipline reports: handing a client the lockbox code, or letting them walk a property unaccompanied. Fines run $5,000 to $8,000.
You attend showings. You don't give out codes.
Unaccompanied access isn't a convenience — it's a violation with your name on it.
The listing that says what isn't true
Wrong lot size. Wrong square footage. Wrong taxes. A photo with the hydro towers quietly edited out. RECO fines for listing misrepresentation land at $5,000 to $8,000, and "the seller told me" is not a defence.
Verify before you publish — measurements, taxes, zoning, from the source, not the last listing.
Never edit a photo to hide a material fact. That one is deliberate, and RECO treats it that way.
Two clients, one deal, no disclosure
Multiple representation without proper disclosure and consent is a recurring referral to discipline. The conflict isn't the problem — hiding it is.
Disclose it in writing, get informed consent from every party, or don't do the deal.
Under TRESA you also have designated representation. Use it properly.
What a Broker of Record actually does about all this
Every one of these is preventable with real oversight — that's the job. When your deposit is late, your BoR knows. When your listing is off, it gets caught before it goes live. When a file smells like a conflict, someone with a law degree reads it before you sign. The agents who end up in the enforcement reports almost always had a broker who wasn't watching.
Quick answers
What is the most common reason RECO disciplines agents?
Trust-account problems — late deposits, unauthorized disbursements, and reconciliations that don't balance. They're also the most likely to end in revocation or criminal charges.
Can I give a buyer the lockbox code to see a property themselves?
No. Unaccompanied access is a common RECO fine ($5,000 to $8,000). You attend the showing.
Is "the seller told me the square footage" a defence to a misrepresentation complaint?
No. You must verify material facts before advertising them. Repeating a wrong number is still your violation.
Does multiple representation get agents in trouble?
Regularly — when it isn't disclosed. Disclose in writing, get consent from all parties, and use designated representation under TRESA.
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Ricky Rathore, ABR, SRS, FRI
Founding Partner and Lawyer
Broker of Record and Owner - RE/MAX Metropolis Realty, Brokerage
A note from the lawyer: this is general information, not legal advice, and reading it doesn't make me your lawyer. Rules change and every situation differs - confirm current requirements with RECO and get advice on your own facts before you act.
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