When a Brokerage Is Shut Down by RECO: What You Need to Know

In the rare event that a brokerage is shut down by RECO, we understand you may have concerns regarding your commissions and pending transactions. Please review the following information to understand how these situations are managed.

I did a transaction with the brokerage. What will happen to the transaction?
For pending transactions: these will continue to close in the normal course of business.

I am owed commission by the listing brokerage – how can I recover what is owed to me?
Your deal administration team will complete a Commission Protection claim form for each deal, detailing the commission outstanding, and submit it to the insurance claims adjuster, ClaimsPro LP. The limits per individual claimant are $200,000, independent of the number of transactions that make up the total claim; it is not $200,000 per deal. The aggregate limit is $4,000,000 for all Commission Protection claims related to this event.

How long will it take to get the commissions owed to me?
Once claims are filed, the insurer will contact your broker of record directly. The insurer expedites claims as quickly as possible (depending on the volume of claims). RECO is not the insurer and cannot determine if there is coverage for your claim. The insurer/adjuster is through ClaimsPro.

Who can I contact about my insurance claim?
It is best to contact your Broker of Record at BrokerofRecord@HouseSigma.com. The brokerage team will handle the claim process and keep you informed.

Options for Commission Delays
We recognize that delayed payments can cause financial stress. You have two primary options:

Option 1 – Wait for the Release of Funds: We will continue monitoring progress and will process your commission payout promptly once funds are received.

Option 2 – Third-Party Commission Advance: If you prefer not to wait, we can introduce you to an approved third-party commission advance provider. If approved and documentation is complete, funding may be available as soon as the same day via direct deposit (timing depends on provider processing).

Next Steps for Commission Advances
If you choose the advance option, we will coordinate the introduction. Please be prepared to provide a Trade Record Sheet (TRS) signed by the Broker of Record. The provider will then prepare a Commission Advance Agreement detailing the amount you wish to draw for your review and signature.