There have been a number of recent news stories about CREA and the Competition Bureau and not all of those stories have been accurate. Here is what you should know.
At its Annual General Meeting on March 22, CREA's membership approved amendments to its MLS® Rules that clarify how the Rules actually operate.
Some news stories have reported these amendments will open up MLS® Systems to members of the public. This is wrong. MLS® Systems remain member-to-member systems and property sellers must use aREALTOR® to list their property on an MLS® System.
However, using aREALTOR® doesn't mean that consumers don't have choice. The Commissioner says that CREA's Rules "reduce the variety of service packages available in the relevant market". This is simply not true.
CREA's MLS® Rules allow for a range of options, from simple listings on a Board's MLS® System for a few hundred dollars to a full service listing, handling the whole transaction, all the paperwork, advising on pricing and negotiations, coordinating meetings and appointments, research, marketing, tlJe list goes on. With 98,000 REAL TORS® in Canada and 9500 brokerages, consumers have plenty of options.
So what do the Rule amendments do? They make it abundantly clear that the services provided by a REALTOR® are a matter of agreement between the REAL TOR® and his or her client. CREA does not tell REAL TORS® how to run their businesses or what fees or commissions to charge, subject to applicable regulatory requirements and the rules of CREA and Boards.
You should also know that CREA filed its Response with the Tribunal on March 26th • The Response rebuts a number of the false statements that have been reported in the media and sets out why CREA opposes the Commissioner's Notice of Application,
In legalese, the Commissioner's Notice of Application alleges that CREA's MLS® Rules amount to an.abuse of dominance, which is a civil violation (Le. non-criminal) under the Competition Act. The Commissioner's argument is essentially that creating the MLS® Rules was an anticompetitive act that has prevented competition in the market for real estate brokerage services,
CREA disagrees. In summary, CREA's Response explains that CREA is a trade association and as such does not control the market for real estate brokerage services. It also explains that CREA's MLS® Rules are not anti-competitive -the rules contain reasonable conditions for access to MLS® Systems which ensure the quality and accuracy of MLS® listing information and maintain the distinctiveness of CREA's MLS® trademarks. Also, the Response asserts that CREA's rules have not prevented competition, as is evident by the fact that REAL TORS® already provide a wide rage of service options at a wide range of prices.
This case now goes to the Competition Tribunal, a specialized tribunal that combines expertise in economics and business with competition law expertise. CREA looks forward to presenting its position before the Competition Tribunal.
Buying, Selling, Leasing or Investing in real estate is sometimes a complex undertaking. Hiring me, a real estate professional will help save you time and money. steven@maislin.com
