The details of a highly publicized deal between the Canadian Real Estate Association and the federal Competition Bureau have finally been released to the general public.
Details were released less than a day after representatives of nearly 100 boards and associations voted 97 per cent in favour of the CREA deal avoiding a potentially expensive court case that the Competition Bureau threatened to start next spring.
Melanie Aitken, the Commissioner of the Competition Bureau announced earlier this year that she was investigating complaints of anti-competitive behaviour centering around CREA's well known Multiple Listing Service. It is estimated that more than 90 per cent of home sellers employ the services of a Realtor to sell their home.
“I am pleased that CREA members have voted in favour of this agreement,” Aitken said. “For Canadian homeowners, it ensures that they will have the freedom to choose which services they want from a real estate agent and to pay for only those services. For real estate agents it ensures they will be able to offer the variety of services and prices that meet the needs of consumers.”
With the new deal in place, Realtors can offer individual services like listing on MLS instead of packaging them all together. Boards and associations can't "deny or descriminate" against brokers or agents who want to offer those services a la carte.
CREA president Georges Pahud said he welcomed the decision to ratify the agreement and end the Competition Bureau battle. “We are pleased that after careful consideration and reflection, real estate boards and associations from across Canada have endorsed the agreement.”
Pahud went on to say in a statement “The commissioner and CREA have agreed that its rules as well as those of members should not deny or discriminate against Realtors wishing to offer mere posting services. CREA has always believed that such rules do not exist today, but if they do, they must be repealed or boards will lose their license to operate under the MLS trademarks.”
As a real estate professional, it is my responsibility to explain to consumers that nothing has changed in MLS management, but rather it has been confirmed that discount brokers have the right to offer discount services. Discount brokers have always had the right to offer "discount" services, this new deal only clarfies what was already in place for years. Consmers will continue to have the opportunity to choose service or no service from their official representative.
I would strongly urge consumers who might be considering the services of a discount brokerage to consider their own abilities first. If you have the marketing knowledge, pricing strategies, legal knowledge, negotiating skills and time then going with a discount brokerage might be a good choice for you. Otherwise, I would definately still recommend the services of a professional Realtor to protect your largest asset.
