Recent class-action suits against the Canadian Real Estate Association (CREA) highlight the
competition and commission practices in the industry. These legal developments will have a
significant impact on how real estate transactions will be conducted across Canada.
This class action suit names CREA and nearly all real estate boards across Canada, and
alleges anti-competitive practices. These claims suggest that ‘rules requiring home sellers to
offer a cooperating commission to prospective buyer brokerages when listing a property on the
MLS are anti-competitive and harmed home sellers in the form of higher commissions…” In 2010, the Federal Government Canadian Competition Bureau (Competition Bureau) was successful in forcing the Canadian Real Estate Association (CREA) to change its rules governing real estate “agency” in Canada. The Canadian government has long believed that
the MLS® System holds a monopoly on resale homes in Canada and with these rule changes,
was to provide Canadian homeowners the ability to sell their home on the MLS® System
without being represented by an agent.
The outcome that resulted from the rule changes is that realtors are now able to post a property
on the MLS without entering into an agency relationship with the home seller. A brokerage can
simply enter your listing into the MLS and have no more involvement with the sale of the
property. Such a listing within the MLS is called a “mere posting”.
Although this ruling occurred in 2010, the availability of Mere Posting services is not well
supported by many industry members, and not widely known by the public. This class action
suit against the Canadian Real Estate industry brings back into question whether licensed real
estate professionals are negating the rules set out by the Competition Bureau.
At homeFree, we see the demand for seller commissions or cooperating commissions unfair to
consumers who simply want the exposure to sell their home and are willing and prepared to do
it without a realtor. They may be willing to do it on their own for many reasons, but most notably
the outrageously high commissions charged by full-service brokerages. As homeFree expands
in the Alberta market, we are committed to eliminating commissions for our customers, while still
providing the exposure of the MLS and the tools and support they need to sell their own home.
Whether you’re buying, selling, or renting, we’re here to provide the support and information you
For a more detailed analysis and expert guidance, reach out to us at homeFree Realty or visit the full link to the article here
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The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA.
References to MLS System Listings and advertising on REALTOR.ca on this website are made in connection with the services provided by Global Empire Corporation brokerage who is licensed to trade across Alberta.
* Only when the buyer comes direct, otherwise the seller may choose to negotiate a commission with the buyer’s agent.