“I am pleased that CREA members have voted in favour of this agreement…This resolution is welcome news for both consumers and real estate agents in Canad 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 that they will be able to offer the variety of services and prices that meet the needs of the consumers.”
CREA ratifies deal to change Canadian home selling practices
October 25, 2010
Finally, a deal has been reached after a grueling battle between the Competition Bureau and CREA.
The primary change is this: sellers will now be able to choose from a menu of services which agents will provide. Sellers rejoice !(?) Over are the days of pay-one-price commission fees.
It started when the Competition Bureau lodged a formal complaint against CREA in February of this year. CREA was quick to react: they quickly amended their rules to include an a la carte offering of services for home sellers. But, there was one massive caveat in their inclusion. Individual local boards could simply opt out of the piecemeal service offerings.
So, feeling understandably dissatisfied, the Competition Bureau marched forward with their complaint. And, so, CREA contacted the Bureau to resume negotiations. By September 30, a deal had finally been reached.
According to the Vancouver Sun Ms. Aitken, representing the Competition Bureau, said:
What it all means…
I’m not too sure how “welcome” real estate agents actually are of this agreement, but I guess it was ratified anyway! After all, there are a lot of concerns as to how this will affect the quality of the sales deals. Will the commission fees that were previously paid to real estate agents simply be transferred to the hands of contract lawyers?
But, that’s the pessimistic view. The optimistic view is that it will create a new level of efficiency in the Canadian real estate market.
Only time will tell…