RECO Discipline Decision Summary: (Decision June 1, 2026 )
A recent discipline decision by the Real Estate Council of Ontario (RECO) highlights the risks registrants face when listing property details that are not properly verified. The case involved inaccurate statements in an MLS listing concerning both
- the size of a residential property and
- the type of flooring installed.
The matter was resolved through a settlement, resulting in an $8,000 fine and mandatory education.
The Listing and Transaction
The registrant represented the sellers of a residential property listed in February 2024. The MLS listing described the home as having approximately 2,000 to 2,500 square feet of living space and stated that the dining room, living room, and bedrooms all featured hardwood flooring.
A floor plan attached to the listing showed a total area of approximately 2,125 square feet, which included finished basement space. The property ultimately sold for $900,000, and the registrant earned a commission of $20,250.
Issues Discovered After Listing
Concerns arose shortly before closing when the buyers completed a walkthrough and questioned whether the bedroom flooring was actually hardwood. The registrant later confirmed that the bedrooms were laminate, not hardwood, while hardwood was present only on part of the main floor.
After closing, the buyers obtained information indicating that the home’s actual size was approximately 1,510 square feet, significantly less than the range stated in the listing. This discrepancy formed a key part of the complaint.
RECO’s Findings
The Discipline Committee found that the listing contained material inaccuracies regarding both:
- The type of flooring, and
- The square footage of the property
The registrant acknowledged the errors.
RECO concluded that the conduct breached multiple obligations under the Code of Ethics, including duties requiring registrants to:
- Act honestly and with integrity
- Ensure representations are accurate and not misleading
- Exercise reasonable skill, knowledge, and judgment in preparing listing information
- Avoid conduct that undermines public confidence in the profession
Penalty Imposed
As part of a settlement, the registrant agreed to the following sanctions:
- An $8,000 administrative fine
- Mandatory completion of a professional practice education course
Considerations for Registrants
This decision reinforces a recurring theme in RECO discipline cases: listing accuracy is not optional, it is a core professional obligation.
Even seemingly routine details such as flooring type or square footage can become material misrepresentations if they are not properly verified. In this case, reliance on incorrect assumptions or unverified information resulted in regulatory consequences.
The decision also underscores the importance of square footage claims, particularly where floor plans or third-party measurements may include basements or non-comparable space. Unless clearly qualified and verified, such figures can easily mislead buyers and expose registrants to discipline.
RECO continues to take a strict approach to listing accuracy. This case is another reminder that registrants must take active steps to verify all material facts before publishing MLS information. In real estate transactions, precision is not just good practice, it is a regulatory requirement
Brian Madigan LL.B., Broker