MLS rules and CREA will go before a Competition Tribunal
Competition Commissioner Melanie Aitken has moved to bring the Canadian Real Estate Association (CREA) before a Competition Tribunal to seek a ruling that would force CREA to change MLS rules that she believes limit competition and harm consumers.
Following a lengthy investigation, the Competition Bureau announced in early November that they believed some of CREA’s rules limit the options that real estate agents might otherwise provide consumers in marketing their homes if the rules didn’t exist. At the time, CREA indicated that they were interested in working towards a settlement and apparently; discussions have been ongoing since that time. In a Globe and Mail open forum today, CREA President Dale Ripplinger claimed that the two parties were “close” to reaching an agreement that would settle the dispute, and expressed that he was “surprised” by the bureau’s announcement that the case would head to a Competition Tribunal for resolution.
An overview of the issues identified buy the bureau as problematic can be found here.The Competition Bureau’s release on this matter is here.
CREA’s response to the Competition Bureau’s move is here.
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Norm Fisher
Royal LePage Saskatoon Real Estate
9 comments so far. We'd love to hear your thoughts.
February 11th, 2010 at 12:11 AM
Oops. I guess stalling the Government wasn’t the greatest idea…
February 11th, 2010 at 10:04 AM
It will be interesting to see how this changes the real estate industry. If a seller only wants to pay a flat fee for an appraisal and an MLS ad, is it possible that no commision would need to be offered to the buyer’s agent? If that’s the case, would sellers who don’t offer a commision be at a big disadvantage since the buyer’s agent might discourage their client from viewing a home where no commision is offered? Will buyers be able to participate in a transaction with an MLS-listed property without being represented by an agent, if they so choose? Taking it further, will buyers will need to start paying a realtor if they want that service? I’d love to hear your thoughts on how and when this will play out, Norm.
February 11th, 2010 at 2:18 PM
Hi Heather,
Not much is certain, except for this; change is a comin’.
I expect that lots of mud will fly before the rules are changed, but I fully expect that the Competition Bureau will have its way with the REALTOR system.
I expect that there will be companies who will be willing to offer a minimum level of service which simply involves placement of the listing on the MLS with the seller looking after the rest. If the sellers contact info appears on the system, then yes, a buyer could likely contact them directly and negotiate directly. No problem.
At present, there are three ‘pillars’ to the MLS system. They are:
1) Membership – only a member may place an MLS listing
2) Agency – An agent must act for the seller through the process
3) Compensation to cooperating brokers – There must be an offer of compensation on an MLS listing.
Only the second pillar is being called into question, so I understand that a seller will need to offer some compensation on the buyers end.
This could go in many different directions. As I see it;
1) We could all live happily ever after.
2) CREA could cease to exist, and along with the organization’s demise, realtor.ca could crumble.
3) Some local boards will withdraw from membership.
4) Private seller sites like saskhouses and propertyguys will need to figure out how they’ll compete with a low service level MLS listing.
5) Consumers will be disappointed to learn that realtor.ca is the silver bullet that they clearly think it is. Here’s a chart that shows “views” on our listings during Q4 2009 at the various sites that we use. If I had to depend on realtor.ca it would be a tough go.
These are just initial thoughts falling out of my head. It will be very interesting indeed. I think it all depends on the extent to which these kinds of services are embraced by consumers. Naturally, an industry cannot exist to support private transactions.
I have a pretty good feeling that all will end well and I’m excited to see it all unfold.
February 11th, 2010 at 2:50 PM
Fairly big news today…
Public soon to have access to MLS
http://www.househunting.ca/buying-homes/story.html?id=84192e37-7813-4a54-bec1-b4ca85a4d620
February 25th, 2010 at 4:07 PM
COMMISSION has ALWAYS been negotiable. TRANSPARENCY has always been part of being a REALTOR. Full DISCLOSURE, ACCOUNTING, etc.
CONSUMERS have a choice who,where, and when they want to list their home.
THE ONLY THING IS THE MLS website WORKS, and REALTORS & BROKERAGES across our country have worked hard to make it a reliable source of information. JUST pick up the phone, click on a computer, or walk into any Real Estate OFFICE – and get your information. ITS FREE!!!!!
Become educated, get a license, pay the fees to membership – and become a REALTOR. YOU ARE ACCOUNTABLE For everything you do, and are HELD to the highest RULES & REGULATIONS to be a PROFESSIONAL REALTOR.
Walk in A REALTORS SHOES – for one WEEK….and then you’ll know!!!
March 23rd, 2010 at 3:35 PM
Thank you Terri; finally someone understand the impact this change will have on our business.
March 24th, 2010 at 5:03 AM
finally I get to say what I have been thinking for years I hope the tribunal will also lissen to a non real estate person I don`t want to walk in their shouse but I would like some regulation in the way rigths are dish it out 1( realestate should not have the rigth to keep information of a house that was for sale in the MLS for years it stays in theyr archive for years and used at comparison later
2 when a client whants a property the agent should let the client know what is wrong with that particular home if any but it should not have the rigth to tell them location, location,location after all the agents seem to decide wich location they like in one given year 3 there should be a conflict of interest usin the MLS for themself to by and sell anything that is a bargan client should also have the chouse
March 24th, 2010 at 5:25 AM
HURRAY finally individual will get some right regarding seling theyr own home
real estate sale person should provide a serviceand not to be in bussines for themself
March 24th, 2010 at 11:10 AM
Hey “Lory/Dianna,”
Thanks for the comments. I appreciate your point of view. I’d also appreciate it if you would pick a post name and stick with it. This post twice under two different names to make it look as if others agree with me isn’t really cool around here.
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