If you work with a REALTOR®, rest assured, your deposit is protected. All REALTOR® are required to participate in an insurance program that includes consumer deposit insurance. The premium for the insurance coverage, including the coverage that protects your deposit, is also paid your REALTOR®.
You are protected in the event of fraud, insolvency or misappropriation of funds.
The insurance provides coverage up to a maximum of $100,000 per claim. In the event the sum of all claims made by all consumers against a particular registrant related to an occurrence (e.g. a brokerage becomes bankrupt) exceeds $3,000,000, effective September 1, 2016, the amount recoverable by each consumer may be pro-rated and limited to a portion of the maximum amount of $3,000,000 of coverage, subject to the terms and conditions of the insurance policy. Also, absolutely no deductible paid by you.
Not covered under the policy are claims arising from your REALTOR acting as an executor, administrator, trustee or in any other fiduciary capacity other than as a broker or salesperson. For more details, contact RECO’s Insurance Department:
416-207-4841 or insurance@reco.on.ca.
More info: https://www.reco.on.ca/home-buyers-sellers/buying-home/protecting-deposit-2/