The Compliance Time Bomb - How Small Mistakes Become Big Risk for Brokerages
- Mark Cadesky
- Dec 9
- 2 min read
Every brokerage has compliance processes, but not every brokerage has compliance systems.
And unfortunately, that difference can mean:
Thousands of dollars in penalties
A damaged reputation with RECO
Legal risk to the brokerage
Long-term brand harm with clients
The scary thing?
Most compliance issues don’t happen because someone is intentionally cutting corners - they happen because everyone assumes someone else is handling it.
“Invisible” Compliance Gaps
In AskMark’s audits of Ontario brokerages, the most common compliance risks include:
Deal paperwork submitted after closing
Missing signatures
Unapproved advertising
Unlicensed assistants involved in communication
Incomplete FINTRAC records
Late trade record sheets
Incorrect trust accounting details
Lack of written disclosures
These aren’t dramatic mistakes - they’re tiny cracks that get missed again and again.
Compliance Is NOT an Admin Problem - It’s a Brokerage Problem
The compliance burden typically lands on:
The Broker of Record
The admin staff
And (sometimes) the agents
So when responsibility is unclear, one of these things happens:
The Broker assumes the admin is reviewing files
The admin assumes the Broker will review files later
The agent assumes compliance will be “checked eventually”
That’s how a minor paperwork gap becomes a risk event.
Why Compliance Falls Apart in Growing Brokerages
Most compliance failures have the same root cause:
Too many deals, not enough structure
Not enough training for agents
No standardized checklist
No systemized deal review timeline
No accountability measures
People don’t fail compliance because they don’t care - they fail because there’s no system guiding them.
When compliance starts slipping, it’s rarely intentional. It’s the natural result of rapid growth without the structure to support it. But the longer a brokerage waits to correct this, the more expensive the mistakes become: re-training staff, fixing transaction errors after the fact, responding to complaints, or even navigating RECO investigations. Compliance doesn’t just protect you - it protects your agents, your brand, and the future saleability of your brokerage. And every day it goes unaddressed, risk quietly compounds.
How AskMark Strengthens Compliance Systems
AskMark helps brokerages replace guesswork with clarity and confidence by implementing:
A mapped compliance workflow from offer to closing
Automation reminders for document submission
Checklists that agents actually follow
Standard file review timelines
Clear task ownership for staff and leadership
Scripts and training so agents know exactly what’s required
A compliance calendar to prevent backlog
With proper structure, compliance becomes predictable, fast, and stress-free.
Why Compliance Isn’t Just a Risk Issue - It’s a Culture Issue
When agents see the brokerage run with precision:
They respect the brand more
They represent it better
They follow processes more diligently
Compliance isn’t just about avoiding trouble. It’s about building a brokerage that agents are proud to belong to.
The Bottom Line
Compliance isn’t optional, but stressful compliance is. Most brokerages are one missing document away from a financial or legal problem… and they don’t even know it.
If compliance keeps you up at night - or worse, if you aren’t thinking about compliance - it’s time to talk to AskMark.
