Unauthorized use of real estate lockboxes is becoming a growing concern, prompting regulators, brokerages, and real estate boards to crack down on agents who allow unsupervised access to homes.
Designed to securely store keys and facilitate scheduled showings, lockboxes are being misused by some agents who share access codes with clients or third parties—violating professional rules and exposing sellers to serious risks, including theft, privacy invasion, and property damage.
The problem is more than anecdotal. In Ontario, the Real Estate Council of Ontario (RECO) has received 20 to 40 complaints annually over the last five years about agents providing unauthorized access to listed properties.
According to RECO registrar Joe Richer, nearly all substantiated complaints led to disciplinary action, with fines starting at $5,500 and reaching as high as $9,500 for repeat or contested violations.
“You’re giving somebody a key with no idea what they’re going to do with it,” said Richer. “That’s a major breach of trust.”
Efforts to find a solution
The consequences for Realtors go beyond monetary penalties. Industry leaders say misuse of lockboxes erodes public confidence in the profession and can result in legal liability for agents and brokerages.
In response, many brokerages and real estate boards are turning to electronic lockboxes that offer time-restricted access and real-time tracking. Still, the problem persists, with some agents ignoring protocols for the sake of speed or convenience.
“It’s not just wrong—it’s dangerous,” said prominent Toronto Realtor Frank Leo, who replaced traditional lockboxes years ago after incidents involving unauthorized reentry into client homes.
Responsibility lies with seller’s agent
Richer said the lockbox is used to simplify the process. It’s a convenience for Realtors, allowing for easier access with the least amount of intrusion possible. But, ultimately, the seller must be comfortable with using a lockbox, and they need to understand the risks.
The seller’s representative is responsible, first and foremost, for protecting the property on the seller’s behalf. They’re expected to be at the showing—unless the seller has specifically instructed that they don’t need to be there.
The agents have a legal obligation to ensure the property isn’t damaged, that nothing is stolen, and that the seller’s privacy isn’t breached.
The lockbox should only be accessed by licensed agents—unless the seller explicitly instructs otherwise, said Richer.
“It’s a very serious issue for us. We have a number of complaints about this annually. And virtually everybody that we receive a complaint about, if it’s supported by evidence that they actually did provide unauthorized access to a property, every single one of those agents has been referred to discipline.”
The case for electronic lockboxes
Richer said the technology has come a long way, and electronic lockboxes are a much better option. The more advanced systems only provide access codes that are valid for a specific time slot, and sometimes they won’t even allow entry a few minutes early. Others work through Bluetooth and mobile apps, meaning the access is tied directly to the agent’s phone—so you can’t just pass along a code.
There are huge benefits: the listing agent knows exactly when someone enters and leaves. Overlapping showings are avoided, and unauthorized re-entry isn’t possible without a new code.
Richer said there’s no provincial law about which lockbox system to use. That’s determined by the local real estate boards. Members of each board must use the systems authorized by that board.
“The good thing, too, is that the profession as a whole is seeing the importance of it and they’re sick and tired of it, of the people that are doing it (breaking the rules) and so they’re filing complaints about it,” added Richer.
Leo, with Frank Leo & Associates, part of the Re/Max team in Toronto and the Greater Toronto Area, said he’s very concerned about the traditional lockboxes.
The difference is in the control and accountability, he said, adding he’s always taken client safety seriously.
“As soon as the technology became available, I made it a strict policy in my business to stop using traditional lockboxes. We use electronic lockboxes only,” he said.
Changes coming this fall, says TRREB
In a statement, John DiMichele, CEO of the Toronto Regional Real Estate Board, said: “As the real estate profession continues to advance, so too do the tools and technologies we rely on to serve clients and uphold professional standards. At TRREB, we are committed to leading that evolution, and this fall, we will introduce a new electronic lockbox solution for our members to enhance both security and accountability.
“The system will provide each (Realtor) with individual access credentials, enable real-time tracking of property visits, restrict access outside of scheduled appointments, and integrate directly with TRREB’s showing management system. This initiative reflects our broader commitment to delivering innovative solutions that support our members’ success and protect the interests of their clients.”
DiMichele said every Realtor has a legal and ethical obligation to follow the rules, especially when it comes to property access and security.
Lockbox codes must never be shared, and no buyer, appraiser, inspector, or service provider may enter a property unless they are accompanied by a Realtor or have written consent from the seller.
He said the board’s MLS rules clearly state that a Realtor must be physically present for the entire duration of a visit.
“Breaches of these rules are taken seriously. Complaints submitted to TRREB are reviewed by our Professional Standards Hearing Panel, and violations may result in significant penalties, including fines and mandatory training. Members are also encouraged to report serious infractions to the RECO, the regulator responsible for enforcing the profession’s Code of Ethics,” explained DiMichele.
“At TRREB, we take our role in supporting member professionalism seriously. We continue to communicate regularly with members about their responsibilities, including best practices for managing property access and ensuring the safety and security of clients and their homes.”
No issues reported in Calgary
Alan Tennant, CEO of the Calgary Real Estate Board (CREB), said the use of lockboxes is very clearly spelled out. The purpose of access is strictly for showings. It’s a Realtor-to-Realtor environment. Any exceptions need to be approved by the listing agent.
“It’s a major demonstration of consumers’ trust . . . they’re essentially handing over the keys to their home, expecting that it will be used solely to help get the property sold. So access is intended specifically for Realtors,” he said.
Tennant said CREB has had no reports or issues regarding abuse of the process.
Mario Toneguzzi is a contributing writer for REM. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald, covering sports, crime, politics, health, faith, city and breaking news, and business. He now works on his own as a freelance writer for several national publications and consultant in communications and media relations/training. Mario was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list.
What about giving the Buyers Lawyer the code? Since Covid this is the most common practice? Seems wrong to me? (I know with a Sentrilock box you can give a “one day code”)
I just say “no”.
Providing access code to lawyers is a practical application for this technology, despite that the lawyers use of the code should be confirmed by acknowledgement the code share to the buyer is only after the transaction is confirmed closed by the sellers Lawyer.
The Toronto Real Estate Board attempted to move forward with electronic lockboxes in the late 1990s, but the so-called industry leaders, the individuals who ran the national franchises, killed it.
Is this an article about the misuse of lock boxes by registrants. Or a platform for DiMichele to promote TRREB and how great they are. The most misuse of lock boxes I have experienced is with out of town sales reps. Such as TRREB. Sales reps take out of town listings, cannot service them properly and give out codes as a matter of convenience for themselves. Or they choose to show properties out of town and do not want to spend hours driving around. So they just give out the codes to consumers. There should be a rule that a registrant does not take on business they cannot fully service. Typically I go to showings on my listings. And in the listing inform the sales reps they will have to show their RECO registration. A few times I have hear the following. “My sales rep could not make it today.” Really! If a sales rep cannot make it call the Listing Sales rep to inform them and work out a solution.
20-50 complaints annually to RECO? That’s all? What about the complaints filed with the local boards/associations? I believe this is an underreported issue and some just don’t want to rock the boat for fear of offending showing agents and jeopardizing a potential deal.
I have been in the industry as a home inspector for 5 years in Alberta,Edmonton, Red deer, Calgary.
Here is my 2 cents and what I have experienced. And MY opion.
20 to 40 Is such a small percentage. However it’s still 20 to 40 to many. How many of those 20 to 40 are because an agent just went for coffee during the inspection? While technically not allowed, not a serious infraction. 100% access should not be given without permission from the sellers. When I work with a new agent and they’re not able to make it, I ask if they got me permission to be by myself, especially if the client is going to be there too. I dont have an issue with this especially if the place is vacant, but prefer if the agent is there if clients want to be there the whole time. Why not have an association fill in??, like they do with open houses. It gets them some experience with the home inspection process, learn a few things that will help them when they are looking at houses with ther clients.
Edmonton uses the Supra key. They’re pretty strict there, Realtors always there. And Red Deer also the Super Key, Red deer os more relaxed, I meant one agent that said she’s never been to an inspection in 25 years. Calgary has the sentury boxes. Most agents show up for the inspection. Sometimes an agent will show up just to let me in. Leave and then not usually come back. I’m bonded and have a criminal record check for vulnerability. So I don’t worry about asking if they got permission from the seller if it’s just me there. But if the client is also showing up, illnask themnto verify its ok withbthe seller. One time I had the client show up with some trades and I was not told they were going to be there. I did not let them in.
I have Talked to over a thousand Agents and everybody has a different idea on what the rules are. So I think this is one of the issues where they’re being broken because they have different interpretations of them. Of course the other is just being either busy, lazy, or too trusting. I know some brokers are very strict woth their agents and make them be present regardless of situation.. I think this is the best practice, Cya and also the agent gets to learn what to look for during the home inspection side of things.
ANDY ARMSTRONG,CMI
A Buyer’s Choice Home Inspections
Suggest Listing agents be present at properties owners / tenants occupied / furnished. For vacant properties, Listing agents to regularily inspect after showings.
We all know that its wrong to give out codes to our listings to unauthorized people so when this does happen, why not pull the offending registrant’s license instead of making the entire industry pay for that offence! If only 20-40 people offend in a year, why make the other 95,000 (+-) registrants in Ontario pay the price of those few. I have had experience with the electronic lock boxes malfunctioning on a regular basis causing me to call the listing agent for a temporary code – how is this more efficient? Unless these proposed electronic lockboxes are fail-proof, there should be a more efficient method available for the agents to be comfortable with before making them compulsory.
If you don’t know how to use them just say so. Things happen but as someone from Waterloo Region that exclusively uses Sentri – 98% of all issues are the showing agent’s problem
40 incidents out of how many hundreds of thousands of showing by over 70,000 agents. Weed out the bad apples with lic suspensions and stop putting even more expense onto struggling agents. We have over 100 lock boxes that cost about $50 each. These last at least 3 or more years which breaks down to about a $1,600 yr expense. Let’s assume that TRREBs “New E Lockbox” pricing is in line with Sentrilock (Owned by NAR). Replacing our current LBs would be about an $17,000 up front cost, Is there going to be an activation fee $4,000? What is the annual license fee on these $17,500?. How about before this is mandated, Boards provide transparency on contract revenues from vendors like Sentrilock etc???
Electronic lockboxes are terrible. Whoever designed these products obviously have never sold real estate in the real world. Short showing windows are unrealistic in the field, clients are early and late, and stay too long at showings sometimes. If your phone dies then no access, Period. Also the apps are sketchy and don’t always pair with the lock. These products add at least 2 layers of additional things Realtors need to do. Most Realtors are trust worthy, so trust us.
This reads like propaganda. 40 incidents out of how many hundreds of thousands of showings by over 70,000 agents? Instead of imposing costly solutions on already struggling realtors, why not focus on accountability, like suspending licenses for bad actors, rather than penalizing the entire industry?
We currently own over 100 traditional lockboxes, which cost us about $50 each. These last 3+ years, which works out to around $1,600 per year in capital expense, simple and efficient.
Now, let’s assume TRREB’s proposed ‘new e-lockbox’ aligns with SentriLock’s pricing (SentriLock is owned by NAR). Switching over would cost roughly:
Upfront hardware cost: $170 per lockbox × 100 = $17,000
Activation/setup fee: potentially $40 per box × 100 = $4,000
Ongoing service/license fee: estimated $175 per box annually × 100 = $17,500/year
That’s over $38,000 in year one, and $17,500+ every year after, just to comply with a system that doesn’t even solve what looks like a minor problem. LAs and Co-Op agents can still give buyers a one day code to get in. It is exactly the same problem!
I think to get an honest understanding of the motivations here, Boards should provide full transparency on revenues from vendor agreements, like the one they have with Sentrilock and others..
You can get electronic lockbox for 120 +50 set up with BrokerBay and you do not need any further service
There is another issue when agents just giving keys to next agent not confirming who they are.
Unfortunately, this is very common practice
Ridiculous pricing! AND I always have issues when I’m in cottage country where cell signal is spotty. I finally removed the app and insist on a one time code if I’m showing a property in rural areas that has one. Make the penalties stiffer for the offenders!
Interesting read.
RECO is reporting 20-40 per year, how many is TRREB reporting?
RECO’s fine is $5,500 minimum, how much is TRREBs?
Does TRREB report all of these complaints to RECO or do they pick and choose which ones goes to RECO or is TRREB and other Boards not reporting to RECO?
Breaches of these rules are taken seriously. Complaints submitted to TRREB are reviewed by our Professional Standards Hearing Panel, and violations may result in significant penalties, including fines and mandatory training. Members are also encouraged to report serious infractions to the RECO, the regulator responsible for enforcing the profession’s Code of Ethics,” explained DiMichele.
Oh so TREEB finally decided to get with the times and do what everyone else has been doing for year. Insert massive eyeroll. Their agents are the reason we have electronic lockboxes – so they can no longer be lazy and send their clients unsupervised like the did so often in covid times. Im happy in Waterloo Region Sentri is the standard- if you want to show houses here – learn how to use it it’s not hard. If you don’t want to learn, go elsewhere it’s as simple as that. It’s pretty pathetic trreb is just realizing now this is an issue.