Source: Globe and Mail
The Canadian Real Estate Association approved changes Monday that will give those who buy or sell their homes on its listing service more power to handle portions of the transaction on their own, but it was not enough to satisfy the Competition Commissioner.
In a move to cut off a challenge by the Competition Bureau, which feels the current system is too restrictive because anyone listing on the Multiple Listing Service must employ an agent through the entire process, the association’s members voted at its annual general meeting in Ottawa to loosen its own rules.
Now, a consumer will be able to pay an agent a flat fee – zero is not an option – to list on the MLS, where about 90 per cent of all home sales are done. Agents must now pass along a seller’s home phone number, if the seller chooses, directly to an interested buyer if asked.
“Through the proactive clarifications of the existing rules, CREA believes the concerns raised by the Competition Bureau are fully addressed,” the organization said in a news release. “At the same time, these amendments ensure the continued integrity of MLS systems and the accuracy of information on board MLS systems that Canadians have come to trust.”
The bureau disagreed, saying the change didn’t go far enough because CREA could still change the rules at any point and place more restrictions on anyone who tried to offer innovative services.
CREA wouldn’t provide further comment, with its legal counsel stating it would rather wait for the case to go before the Competition Tribunal. The association’s president, Dale Ripplinger, said the changes “wouldn’t make sense to anyone who wasn’t a real estate agent,” before abruptly calling off a news conference.
The vote was seen as a way for Canada’s real estate sales industry to satisfy concerns raised by the Competition Bureau, which has filed charges with the Competition Tribunal alleging the real estate association makes it impossible for any of its members to offer consumers fee-based services for particular portions of a transaction, such as listing on the MLS or negotiating a sale price.
This leads to higher prices for consumers, the Bureau says.
The proposed changes were a key pillar in the real estate organization’s defence before the Tribunal. The association must submit its response to the charges by March 25 and the organization hoped a strong vote from its members on the key issues troubling the Competition Bureau would be enough to have the charges set aside.
The MLS has operated for more than 50 years and only registered agents are allowed to list homes on the service. The MLS trademark is owned by CREA, and each real estate board operates the service in its region. While anyone can sell their home on their own, having a listing on the service is seen as an integral part of achieving the best sales price.
A CREA spokesperson said the changes would be implemented “as soon as it is reasonable at each local board.”
March 25th, 2010 at 6:16 pm
It is sad that CREA is giving in a little easily so soon after the competition bureau findings. This should be a fight that goes on for a while.
April 16th, 2010 at 3:20 pm
Sherman – I`m glad it is getting sorted out because this could go on for years and years. Hopefully we will come to a settlement which will satisfy consumers and realtors.
April 18th, 2010 at 11:48 pm
Second time here, very sharp mind and brilliant writing. very good post. looking forward for more posts like this. Thanks Ann
May 9th, 2010 at 11:43 am
what people do not understand is that its not putting a house on mls that will get your home sold. It is the agents help that gets the house sold. I could pull out my own tooth but i still go to the dentist…
Just my opinion
May 22nd, 2010 at 7:53 pm
Howdy there,this is Sharon Minotti,just discovered your Post on google and i must say this blog is great.may I quote some of the Post found in this post to my local people?i’m not sure and what you think?in either case,Thx!
May 27th, 2010 at 10:08 pm
http://www.squidoo.com/howtogettargetedtraffic
May 31st, 2010 at 5:34 pm
Hello,this is Homer Seiwell,just found your Blog on google and i must say this blog is great.may I share some of the writing found in this website to my local friends?i am not sure and what you think?anyhow,Thank you!
July 14th, 2010 at 4:10 am
No matter how Realtors want to spin it, the fact is that they are in decline, while private sales are on the rise. The easy access to forms, lawyers and knowledge makes it easy to save 5% on ones property sale. Sites such as Kijiji, craigslist, http://www.listproperty.com and property guys all conspire to rid the world of high priced real estate agents!!
Why spend $10,000 to sell a home that is worth $200,000? you shouldn’t!
August 5th, 2010 at 10:35 am
I tend to agree with what Dan said in that realtors are on the decline. Perhaps for the better as falling market prices and minimal selling inventory are factors helping to drive out part timers leaving the pool to the seasoned and more determined agents. However, I feel that agents need to find more innovative ways of prospecting new clients. As mentioned, a 4-6% commission is high in the mindset of many would be sellers. Justifiably, they cover costs and living expenses as a course of doing business. However, instead of looking at it from a cost perspective, why not look at it first from an efficiency perspective? How much of the costs are being eaten up by high marketing costs? Can you quantify the ROI effectively? By allowing oneself to invoke a more efficient marketing plan, costs can be cut and ultimately commissions (seeing as this is predominantly the biggest disconnect).
August 25th, 2010 at 9:08 pm
Great Blog and thank you for reporting the actual truth as opposed to what most of the local media in Toronto are reporting! The public should be aware that in order for a home to marketed on MLS you must still sign a listing agreement with a Brokerage, and that Brokerage has a Fiduary duty to there client as per the Real Estate and Business Brokers Act and according to RECO’s rules and regulations.