Deal reached with realtors on the use of MLS
CTV.ca News Staff
Canada's competition bureau and the Canadian Real Estate Association have reached a deal that could transform the way that Canadians sell their homes.
The agreement in principle would allow homeowners looking to sell their property to have cheaper access to the Multiple Listing Service website.
The bureau and CREA have been battling for years over access to the MLS, which is owned in Canada by CREA. The website is thought to be responsible for about 90 per cent of residential property sales.
Under CREA's previous rules, homeowners had to buy an entire slate of services from realtors including, perhaps, services they didn't want or need. But the Competition Bureau called that anticompetitive. It said that left consumers with few choices and penalized real estate agents who wanted to offer consumers the choice of simply listing a property on MLS.
"If ratified, the agreement will ensure that consumers have the ability to choose which services they want from a real estate agent when selling their home, and to pay for only those services," Melanie Aitken, the commissioner of competition, said in a news release.
"It also provides much-needed flexibility for real estate agents by ensuring that they have the ability to offer the variety of services and prices that meet the needs of consumers."
The Competition Bureau's battle with CREA has raged for months, with negotiations coming to a standstill this spring and the bureau saying that only a legally binding agreement would be acceptable.
Though CREA accused the competition commissioner of tarnishing the reputation of the profession, CREA's representatives went back to the Bureau in September and negotiations resumed.
"Since challenging CREA's rules, the bureau's goal has always been to achieve a long-term solution that would strengthen competition in the residential real estate brokerage services market," Aitken said.
"This resolution, if ratified by CREA's membership, achieves this goal."
The agreement has been approved by its board of directors, but still has to be ratified by CREA's 90,000 realtors.
A special meeting has been scheduled for Oct. 24 in St. John's, N.L.
CREA President Georges Pahud said the agreement is the result of extensive negotiations.
"Both sides gained a better understanding of their respective concerns through our discussions. We are pleased that a resolution has been reached, subject to member approval," he said in a statement late Thursday.
If ratified the agreement will be legally binding and will remain in effect for 10 years.
CTV.ca News Staff
Canada's competition bureau and the Canadian Real Estate Association have reached a deal that could transform the way that Canadians sell their homes.
The agreement in principle would allow homeowners looking to sell their property to have cheaper access to the Multiple Listing Service website.
The bureau and CREA have been battling for years over access to the MLS, which is owned in Canada by CREA. The website is thought to be responsible for about 90 per cent of residential property sales.
Under CREA's previous rules, homeowners had to buy an entire slate of services from realtors including, perhaps, services they didn't want or need. But the Competition Bureau called that anticompetitive. It said that left consumers with few choices and penalized real estate agents who wanted to offer consumers the choice of simply listing a property on MLS.
"If ratified, the agreement will ensure that consumers have the ability to choose which services they want from a real estate agent when selling their home, and to pay for only those services," Melanie Aitken, the commissioner of competition, said in a news release.
"It also provides much-needed flexibility for real estate agents by ensuring that they have the ability to offer the variety of services and prices that meet the needs of consumers."
The Competition Bureau's battle with CREA has raged for months, with negotiations coming to a standstill this spring and the bureau saying that only a legally binding agreement would be acceptable.
Though CREA accused the competition commissioner of tarnishing the reputation of the profession, CREA's representatives went back to the Bureau in September and negotiations resumed.
"Since challenging CREA's rules, the bureau's goal has always been to achieve a long-term solution that would strengthen competition in the residential real estate brokerage services market," Aitken said.
"This resolution, if ratified by CREA's membership, achieves this goal."
The agreement has been approved by its board of directors, but still has to be ratified by CREA's 90,000 realtors.
A special meeting has been scheduled for Oct. 24 in St. John's, N.L.
CREA President Georges Pahud said the agreement is the result of extensive negotiations.
"Both sides gained a better understanding of their respective concerns through our discussions. We are pleased that a resolution has been reached, subject to member approval," he said in a statement late Thursday.
If ratified the agreement will be legally binding and will remain in effect for 10 years.
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