Protecting Your Deposit

Posted by: Grenville Dungey / Category: Toronto Real Estate, Toronto Realtor

When you work with a registered real estate broker or salesperson, your deposit is protected subject to the terms and conditions of the insurance policy. All brokers and salespersons are required by law to participate in an insurance program that includes consumer deposit insurance. The premium for the insurance program, including the coverage that protects your deposit, is paid for by brokers and salespersons.

COVERAGE
Consumer deposit insurance offers protection in the event of fraud, insolvency or misappropriation of funds by a registrant (e.g. a brokerage). There is no deductible under this coverage. However, the insurance policy contains clauses, which may limit the amount payable if there is a loss. 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 $1,000,000, the amount recoverable by each consumer may be pro-rated and limited to a portion of the maximum amount of $1,000,000 of coverage, subject to the terms and conditions of the insurance policy.

WHAT’S NOT COVERED
Claims arising as a result of a registered broker or salesperson acting as an executor, administrator, trustee, guardian, conservator, or in any other fiduciary capacity other than as a broker or salesperson are not covered under the policy.

HOW TO MAKE A CLAIM
Information related to making a claim is provided below. Before making a claim you may want to contact RECO’s Insurance Department for more information.

Complete the Consumer Deposit Notice of Claim form, attach all relevant documentation and forward this information to:

Attention: Insurance Administrator
Real Estate Council of Ontario
3250 Bloor Street West East Tower, Suite 600 Toronto, ON M8X 2X9
Phone: 416-207-4841
Toll-free: 1-866-757-7772
Fax: 416-207-9020
E-mail: insurance@reco.on.ca

www.reco.on.ca

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