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HomeReal EstateMany Ontario brokerages are pocketing interest on trust account funds

Many Ontario brokerages are pocketing interest on trust account funds

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Brokerages using loophole in province’s real estate law to take interest payments owed to homebuyers.

A loophole in the laws regulating real estate in Ontario is allowing millions of dollars in interest payments owed to homebuyers to instead be pocketed by brokerage businesses.

At issue are just a few lines of fine print known as the “Schedule B disclosures” in a typical real estate agreement of purchase and sale contract. By provincial law, brokerages are required to tell buyers if the trust account that will hold their deposit, which can range from 2 to 5 per cent of a home’s purchase price, is an account that collects interest, and if so, at what rate.

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Ethan Radcliffe
Ethan Radcliffe is a senior reporter and digital editor at The Toronto Insider, specializing in Canadian federal policy, GTA urban development, and national economic trends. With over a decade of experience in North American journalism, Ethan focuses on translating complex legislative and economic developments into clear, accessible reporting for Canadian readers. Ethan’s work emphasizes policy analysis, government accountability, and data-driven reporting, with a strong focus on how federal and provincial decisions impact communities across the Greater Toronto Area and beyond. He has covered infrastructure planning, housing policy, fiscal strategy, and regulatory changes affecting Canadian households and businesses. A graduate of Toronto Metropolitan University’s School of Journalism, Ethan brings expertise in investigative reporting, long-form analysis, editorial standards, and digital publishing best practices. His reporting is guided by verifiable sources, public records, and transparent sourcing. In addition to reporting, Ethan has experience in newsroom editing, fact-checking workflows, SEO-informed journalism, and audience analytics, ensuring stories meet both editorial integrity standards and modern digital discoverability requirements. Ethan is committed to objective, fact-driven journalism and adheres to established ethical guidelines, prioritizing accuracy, clarity, and public trust in all reporting.

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