The Competition Bureau has taken a significant step in its investigation into the Canadian Real Estate Association (CREA) by securing a court order to access critical records. The Bureau is looking into CREA's policies that may limit competition among real estate agents and stifle innovation. At the center of the probe are the Multiple Listing Service (MLS) systems and the rules governing how agents handle commissions.
The Bureau's inquiry began in June 2024, following concerns that CREA's practices might prevent real estate agents from competing fairly. One key issue is the structure where seller agents often pay the buyer's agent commission, a model the Bureau claims could lead buyer agents to steer clients away from properties with lower commissions. CREA, which oversees over 160,000 real estate professionals, argues that its policies promote transparency and fairness for both consumers and agents.
Additionally, CREA's cooperation policy, introduced in 2024, requires residential listings to be added to an MLS system within three days of being publicly marketed. Critics argue that this favors larger brokerages, potentially disadvantaging smaller, alternative real estate services. The Bureau's investigation follows a similar legal battle in the U.S., where real estate associations faced scrutiny over commission practices.
While CREA is cooperating with the investigation, it maintains that its rules are designed to benefit the consumer and support healthy competition. The outcome of this investigation could lead to significant changes in the way real estate transactions are conducted in Canada.
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