On Thursday, September 30, 2010, the Canadian Real Estate Association (CREA) and the federal competition authorities reached an agreement in principle. The agreement allows sellers to choose which services they want from a real estate agent, and to pay for only those services.
In February 2010, the The Bureau challenged the rules imposed by the CREA on real estate agents who list residential properties using the Multiple Listing Service (MLS) system to be anti-competitive. The Multiple Listing Service is owned by the CREA and accounts for the majority of sales in Canada. Under the agreement, the CREA will eliminate its ability to adopt rules that discriminate against real estate agents who are hired by consumers only to list or post a residential property on MLS.
After the agreement is ratified, the agreement will remain in force for 10 years. A copy of the legally binding consent agreement will be made available on the Competition Tribunal Web site.
The agreement ends more than four years of discussion and negotiations with the CREA on the matter.
Competition Bureau Canada: