RECO freezes bank accounts of four ‘Save Max’ brokerages

Ontario’s real estate services regulator has issued a freeze order on the bank accounts of four “Save Max” brokerages in Mississauga after it found that $2.7 million was “disbursed unlawfully” from trust accounts.

The Real Estate Council of Ontario (RECO) announced the action on Tuesday following its investigation into “Save Max,” which was completed last month.

“These orders were issued to protect funds held in the brokerages’ accounts and to prevent withdrawals while safeguarding consumer deposits,” RECO said in a news release. “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.”

The regulator revealed that it has notified Peel Regional Police of its findings.

RECO’s investigation began in 2024 after it received a complaint raising concerns about brokerages associated with “Save Max.”

According to the summary of key findings that RECO released, the $2.7 million was “used outside of the terms of the trust, including for loan payments, property management fees, taxes, credit card balances and vendor services.”

RECO, which also conducted a third-party forensic review of the brokerages’ financial records, noted that the unlawfully disbursed funds were typically replaced before month-end, when brokerages were required to complete a reconciliation of the real estate trust account.

In addition to the freeze order, the regulator has also issued notices of proposal to revoke registration, immediate suspension orders against the four “Save Max” brokerages and two individuals.

RECO said the real estate trust account should be strictly for securing deposits and facilitating the completion of transactions, and funds should be disbursed only in accordance with the terms of the trust.

“Any deviation from these requirements, intentional or otherwise, is a serious contravention of TRESA (Real Estate and Business Brokers Act),” RECO said.

“It undermines consumer confidence, jeopardizes the integrity of the transaction process, and ultimately damages the trust the public places in real estate agents.”

The regulator noted that 400 registrants involved with the four brokerages will be affected by the actions it’s taken.

Buyers and sellers should contact their agent, while agents with outstanding commissions should file a commission protection insurance claim, RECO said.

CP24 has reached out to “Save Max” for comment.