Can Realtor Keep License if They Declare Bankruptcy

Can Realtor Keep License if They Declare Bankruptcy

Published: April 2, 2013 Last updated: January 7, 2021 at 0:28 am

Can A Lose Their License After Filing for Bankruptcy?

Hi Ross, I am a local and have been struggling for the past few years. I have some debts that I can not pay plus I owe the government back taxes. I can not get ahead as they are taking 50% of my income every deal.

Can I declare and include back taxes and if I did declare bankruptcy would I lose my license as a Realtor? S.K., Barrie, Ontario

Thanks for reaching out. Interestingly I am working this week with another GTA asking the exact same questions. Yes, you can declare and you can include back taxes. Now, about your licensing question…

If you declare personal bankruptcy, it is not an automatic revocation of your license.

You need to notify The Real Estate Council of Ontario (RECO) within five business days of doing so. They will conduct a review of your application into bankruptcy, your list of creditors, the amount of dollars involved etc.

In almost all cases, the license is preserved, though there would be conditions imposed on your license renewal and maintenance. These would generally pertain to limitations on you in regards to being a Broker of Record or Branch Manager etc.  So if you are currently a Broker of Record, you would likely have to step down for a period of three to five years.

I’d be happy to meet with you and answer more detailed questions. It won’t cost you anything and it sounds like you need this fast!. A or a will, by law, give you immediate relief from garnishments and other collection processes.

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​Ross Taylor
One of /GTA's Most Trusted and Knowledgable Agents

Ross Taylor is recognized by his peers as one of Canada's pre-eminent difficult specialists. His ASKROSS blog and column ​ in Canadian Mortgage Trends are focused on the intersection between mortgage financing and personal credit.

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