Despite all the media hoopla associated with Sunday's vote by CREA members to ratify the Competition Consent Agreement, it will be business as usual for real estate professionals across the country.
The public will continue to access listings on the MLS system or Realtor.ca, but any posts to the system remain firmly in the hands of local realtors. Under the terms of the new, 10-year agreement, CREA and the Boards cannot prevent or discriminate against 'mere postings' and members who offer 'mere postings.' CREA does not believe that such rules exist today-but if they do-they must be repealed or Boards will lose their license to operate under the MLS trademark.
So all in all, it's business as usual. Sure, consumers have more choices, but then again, they always have. Discount brokers have been around for years. There is a reason why the MLS system is responsible for 90 per cent of resale housing transactions in the country. Canadians rely on the full-service approach provided by the country's 100,000 real estate professionals. Regardless of alternatives, most people require the services of an experienced agent to sell their home.
All we need to do is look south of the border-where the process is similar-for confirmation of that fact. According to the National Post, "the U.S. Department of Justice negotiated an anti-trust settlement with the National Association of Realtors allowing internet brokers and other agents offering discounted commissions to access the MLS in 2008. Two years later, traditional full-service brokers still control between 70 and 80 per cent of the U.S. housing market, and the average commission has increased to 5.3 per cent of the sale price from five per cent in 2008."
In fact, NAR statistics provided by the National Post show 80 per cent of sellers use a full-service broker, managing most of a transaction from listing to closing. Another nine per cent choose limited services that include discount brokerage and 11 per cent opt for the bare minimum of just listing on MLS.
There's a story to be told here. Consumers place value on the services we provide as realtors and that's not about to change. Why? We have the knowledge and expertise to generate results. Few are willing to take chances with their most valuable asset. As Canada's leading real estate organization, we will continue to do what we do best-assisting buyers and sellers with the biggest financial decision of their lifetime.
Take a moment to look at our new marketing campaign on the critical role of a RE/MAX agent. It is easily found on www.FitToSell.ca. This timely campaign demonstrates the value of using a professional RE/MAX agent. It should help offset some of the negative press, until things settle.
As I said, business as usual.
Sincerely,
Michael Polzler
Executive Vice President, Regional Director
RE/MAX Ontario-Atlantic Canada Inc.
Thursday, October 28, 2010
Monthly price rise of 0.2% in August -Teranet – National Bank National Composite House Price Index™
Source: Teranet – National Bank National Composite House Price Index™
Canadian home prices in August were up 10.4% from a year earlier, according to the Teranet-National Bank National Composite House Price Index™. It was the smallest 12-month gain in six months. The metropolitan markets showing a similar deceleration included Toronto and Vancouver, though their price increases from a year earlier were still in the neighbourhood of 12%. For Ottawa, the market where prices have risen most in the last six months, the 12-month increase was 10.7%. In the other three markets the 12-month gains were more modest: 7.7% in Montreal, 6.8% in Halifax, 5.0% in Calgary.
For the entire article select the link above
Canadian home prices in August were up 10.4% from a year earlier, according to the Teranet-National Bank National Composite House Price Index™. It was the smallest 12-month gain in six months. The metropolitan markets showing a similar deceleration included Toronto and Vancouver, though their price increases from a year earlier were still in the neighbourhood of 12%. For Ottawa, the market where prices have risen most in the last six months, the 12-month increase was 10.7%. In the other three markets the 12-month gains were more modest: 7.7% in Montreal, 6.8% in Halifax, 5.0% in Calgary.
For the entire article select the link above
Sunday, October 24, 2010
CREA members approve MLS deal with Competition Bureau
The winds of change were blowing outside a St. John’s hotel Sunday afternoon, as representatives of the country’s 101 real estate boards voted 97 per cent in favour of a deal that some warned could mean the end of the Canadian Real Estate Association.
At the very least, it will change the current face of the Multiple Listing Service (MLS).
The controversy began earlier this year when Competition Bureau Commissioner Melanie Aitkin announced she was investigating complaints of anticompetitive behaviour, including concerns CREA kept its members from offering services that would lower costs for consumers.
To see the entire blog select the link above.
At the very least, it will change the current face of the Multiple Listing Service (MLS).
The controversy began earlier this year when Competition Bureau Commissioner Melanie Aitkin announced she was investigating complaints of anticompetitive behaviour, including concerns CREA kept its members from offering services that would lower costs for consumers.
To see the entire blog select the link above.
Thursday, October 21, 2010
GTA REALTORS® Report Mid-Month Resale Housing Market Figures
TORONTO, October 18, 2010 -- Greater Toronto REALTORS® reported 3,012
sales through the Multiple Listing Service® (MLS®) during the first two
weeks of October 2010.
This represented a 17 per cent decrease compared to the 3,631 sales
recorded during the same period in 2009. Year-to-date sales amounted to
71,988, representing a three per cent increase compared to 2009.
“The GTA resale market is balancing out from the record level of sales
experienced in the second half of 2009 and first few months of 2010. This is
why sales figures have been lower than 2009 levels in recent months. With
this said, it should be noted that the annual rate of decline slowed somewhat
through the first two weeks of October,” said Toronto Real Estate Board
President Bill Johnston.
The average price for October mid-month transactions was $444,644 – up
seven per cent compared to the average of $414,479 recorded during the
first 14 days of October 2009.
“We are seeing enough buyers relative to sellers to promote continued price
growth year-over-year. People are buying because home ownership remains
affordable in the GTA. A household earning the average income can
comfortably afford a mortgage on the average priced resale home,” said
Jason Mercer, TREB’s Senior Manager of Market Analysis.
sales through the Multiple Listing Service® (MLS®) during the first two
weeks of October 2010.
This represented a 17 per cent decrease compared to the 3,631 sales
recorded during the same period in 2009. Year-to-date sales amounted to
71,988, representing a three per cent increase compared to 2009.
“The GTA resale market is balancing out from the record level of sales
experienced in the second half of 2009 and first few months of 2010. This is
why sales figures have been lower than 2009 levels in recent months. With
this said, it should be noted that the annual rate of decline slowed somewhat
through the first two weeks of October,” said Toronto Real Estate Board
President Bill Johnston.
The average price for October mid-month transactions was $444,644 – up
seven per cent compared to the average of $414,479 recorded during the
first 14 days of October 2009.
“We are seeing enough buyers relative to sellers to promote continued price
growth year-over-year. People are buying because home ownership remains
affordable in the GTA. A household earning the average income can
comfortably afford a mortgage on the average priced resale home,” said
Jason Mercer, TREB’s Senior Manager of Market Analysis.
Wednesday, October 13, 2010
Recent RECO Decisions Costly
Not following the rules can be costly to you the agent. Look at teh following recent RECO decisions that cost these agents greatly not only in monetary ways but in reputation.
In a recent decision a Registrant provided the Landlord with an employment letter for a Tenant that he knew was false. He was fined $13,000. Zoran Karanivic
The Listing Agent misrepresented the parking space for a condominium anbd the Selling Agent did not confirm that to her client. he was fined $8,000 and she was fined $4,000. Lorusso and Jiraskova
This Listing Agent misrepresented the square footage in the MLS and refused to cooperate with the Buyer's Agent in resolving the problem. She was fined $9,000. Annemarie Mills
In a recent decision a Registrant provided the Landlord with an employment letter for a Tenant that he knew was false. He was fined $13,000. Zoran Karanivic
The Listing Agent misrepresented the parking space for a condominium anbd the Selling Agent did not confirm that to her client. he was fined $8,000 and she was fined $4,000. Lorusso and Jiraskova
This Listing Agent misrepresented the square footage in the MLS and refused to cooperate with the Buyer's Agent in resolving the problem. She was fined $9,000. Annemarie Mills
Learn how to stay safe on the job
Over the past decade, several REALTORS® have been victims of violence. An Ottawa REALTOR® was attacked during an open house in a trendy west-end suburb. Fortunately her screams frightened the attacker and he fled the scene.
However, two other REALTORS® were not so fortunate. One was a commercial REALTOR® in Toronto who was killed while she worked alone in her office in November 2002. Most recently, a female REALTOR® was murdered while showing an upscale vacant home in Victoria, BC.
These REALTORS® were acting professionally, but their personal safety was at risk. To help you become more aware of the risks and keep you out of harm’s way, safety materials are available on the OREA website under Administrative Information. These materials were developed by the National Association of REALTORS®, CREA and your provincial association. Here are a few tips from the site:
Keep a cell phone at your side: Your cell phone can be your best friend in a bad situation. Program 911 on your speed dial.
Have a distress code: Have a prearranged distress signal. For example, "I'm at the Jones house and I need the red file right away." Share and practice your distress code with your office, colleagues, family and friends. Use it any time you feel uneasy.
Make sure your office knows: Make sure someone knows who you are with, where you are going and when you’ll be back. Make sure someone else knows what your schedule is, and who you're planning to meet.
Don't glamorize promotional material: Avoid glamour shots. Your marketing materials should be polished and professional. Limit the amount of personal information you share. Do not use your home phone number; use a cell phone number instead. Use your office address, rather than your home address.
Know who you are dealing with: When you have new clients, meet them at the office first. Verify their identities. Get their car make and licence number and if you can, photocopy their driver's licence. Complete a client i.d. form. A serious client will not hesitate to share this information.
Take precautions at open houses: Often at an open house, you'll be working alone. You won't know who will show up, so take basic precautions to ensure your personal safety.
Take the time to read over the other safety materials at www.orea.com. Knowing what to do to protect yourself could save your life
However, two other REALTORS® were not so fortunate. One was a commercial REALTOR® in Toronto who was killed while she worked alone in her office in November 2002. Most recently, a female REALTOR® was murdered while showing an upscale vacant home in Victoria, BC.
These REALTORS® were acting professionally, but their personal safety was at risk. To help you become more aware of the risks and keep you out of harm’s way, safety materials are available on the OREA website under Administrative Information. These materials were developed by the National Association of REALTORS®, CREA and your provincial association. Here are a few tips from the site:
Keep a cell phone at your side: Your cell phone can be your best friend in a bad situation. Program 911 on your speed dial.
Have a distress code: Have a prearranged distress signal. For example, "I'm at the Jones house and I need the red file right away." Share and practice your distress code with your office, colleagues, family and friends. Use it any time you feel uneasy.
Make sure your office knows: Make sure someone knows who you are with, where you are going and when you’ll be back. Make sure someone else knows what your schedule is, and who you're planning to meet.
Don't glamorize promotional material: Avoid glamour shots. Your marketing materials should be polished and professional. Limit the amount of personal information you share. Do not use your home phone number; use a cell phone number instead. Use your office address, rather than your home address.
Know who you are dealing with: When you have new clients, meet them at the office first. Verify their identities. Get their car make and licence number and if you can, photocopy their driver's licence. Complete a client i.d. form. A serious client will not hesitate to share this information.
Take precautions at open houses: Often at an open house, you'll be working alone. You won't know who will show up, so take basic precautions to ensure your personal safety.
Take the time to read over the other safety materials at www.orea.com. Knowing what to do to protect yourself could save your life
REALTORS® have a duty to disclose defects
Basement flooding, cracks in the foundation, mould – what do sellers need to disclose and what do REALTORS® need to find out?
Real estate professionals have a duty to discover and disclose facts about a property that is being listed or shown to a buyer that could be relevant to a buyer’s decision to buy. As a REALTOR®, your codes of ethics require you to discover facts pertaining to every property for which you accept an agency. The disclosure issue is covered in Article 4 of the CREA Code and Section 21 of the REBBA Code.
In a new OREA continuing education course called Defects and the Importance of Disclosure, author and course developer Mark Weisleder says all defects should be disclosed in advance. “I believe that REALTORS® should show the SPIS (Seller Property Information Statement) to every potential buyer, especially if they are told in advance that there are defects in the property. If you disclose everything, then it is extremely unlikely that you or your seller will be sued by any buyer. If you do not disclose, there is always the possibility that proceedings will be brought against you as well as your seller client.”
Weisleder also says that if you are not sure whether the information is something you should disclose, simply ask yourself if it’s something you would want to know if you were buying the property yourself. “If the answer is yes, then you know you should be disclosing this information to the buyer.”
As a general rule, sellers of real estate and their listing agents have a duty to disclose any hidden (latent) defects that they are aware of in the property that could affect a reasonable buyer’s use and enjoyment and/or perceived value of the property.
Physical Defects - Patent and Latent Defects
There are two kinds of potential physical defects in a property -- patent defects and latent defects. A patent defect is a defect that is obvious when you walk into the home; for example a broken window. The buyer cannot complain about this defect because they can easily see it when viewing the home. They are thus governed by the legal doctrine of caveat emptor or buyer beware, and have to accept these defects on closing, unless they include a clause in their agreement that the seller will repair the defect.
A latent defect is a hidden defect, which cannot be observed on a normal inspection. The law is that if the seller knows about a latent defect that makes the home either uninhabitable by the buyer; unfit for the buyer’s intended purpose; or dangerous, then the seller must disclose this defect to the buyer. In addition, the seller cannot intentionally conceal what would otherwise be a patent defect. Examples of latent defects that should be disclosed include a problem with the foundation, or a very serious basement or roof water problem that has not been repaired.
“The Ontario Real Estate Association introduced the SPIS as a means for sellers to put buyers on notice of any physical problems with the property, to alert buyers and to provide buyers with the opportunity to make further inquiries when necessary,” says Weisleder. “It states right on the form that the form is not intended to be a warranty and the buyer must conduct their own independent investigation or property inspection.”
When completing the statement, the seller is asked to respond either “yes,” “no,” “unknown” or “not applicable” to questions such as “are you aware of any water problems” or “are you aware of any structural problems.” These statements have been completed by sellers for years in hundreds of thousands of real estate transactions across Canada, without any liability, especially when they completed the statement truthfully and to the best of their knowledge.
Yet there have also been cases where sellers who signed the statement were held liable for the buyer’s damages when problems were discovered after closing. In a review of these decisions, the judge determined on a factual basis that the seller either knew that what they were saying was false or had deliberately concealed a defect which was found out afterwards. “It was not the SPIS form that got the seller in trouble,” says Weisleder. “It was about not telling the truth when completing the form.”
Finally, Weisleder stresses, “Even if you or your seller are not required by law to disclose the information, the bar in terms of the level of professionalism required of REALTORS® continues to move higher. By fulfilling your legal and ethical duties regarding the detection and disclosure of defects, you will insulate yourself and your clients from a lot of unnecessary pain and suffering.”
For more information about OREA’s Defects and the Importance of Disclosure online course visit www.orea.com.
Real estate professionals have a duty to discover and disclose facts about a property that is being listed or shown to a buyer that could be relevant to a buyer’s decision to buy. As a REALTOR®, your codes of ethics require you to discover facts pertaining to every property for which you accept an agency. The disclosure issue is covered in Article 4 of the CREA Code and Section 21 of the REBBA Code.
In a new OREA continuing education course called Defects and the Importance of Disclosure, author and course developer Mark Weisleder says all defects should be disclosed in advance. “I believe that REALTORS® should show the SPIS (Seller Property Information Statement) to every potential buyer, especially if they are told in advance that there are defects in the property. If you disclose everything, then it is extremely unlikely that you or your seller will be sued by any buyer. If you do not disclose, there is always the possibility that proceedings will be brought against you as well as your seller client.”
Weisleder also says that if you are not sure whether the information is something you should disclose, simply ask yourself if it’s something you would want to know if you were buying the property yourself. “If the answer is yes, then you know you should be disclosing this information to the buyer.”
As a general rule, sellers of real estate and their listing agents have a duty to disclose any hidden (latent) defects that they are aware of in the property that could affect a reasonable buyer’s use and enjoyment and/or perceived value of the property.
Physical Defects - Patent and Latent Defects
There are two kinds of potential physical defects in a property -- patent defects and latent defects. A patent defect is a defect that is obvious when you walk into the home; for example a broken window. The buyer cannot complain about this defect because they can easily see it when viewing the home. They are thus governed by the legal doctrine of caveat emptor or buyer beware, and have to accept these defects on closing, unless they include a clause in their agreement that the seller will repair the defect.
A latent defect is a hidden defect, which cannot be observed on a normal inspection. The law is that if the seller knows about a latent defect that makes the home either uninhabitable by the buyer; unfit for the buyer’s intended purpose; or dangerous, then the seller must disclose this defect to the buyer. In addition, the seller cannot intentionally conceal what would otherwise be a patent defect. Examples of latent defects that should be disclosed include a problem with the foundation, or a very serious basement or roof water problem that has not been repaired.
“The Ontario Real Estate Association introduced the SPIS as a means for sellers to put buyers on notice of any physical problems with the property, to alert buyers and to provide buyers with the opportunity to make further inquiries when necessary,” says Weisleder. “It states right on the form that the form is not intended to be a warranty and the buyer must conduct their own independent investigation or property inspection.”
When completing the statement, the seller is asked to respond either “yes,” “no,” “unknown” or “not applicable” to questions such as “are you aware of any water problems” or “are you aware of any structural problems.” These statements have been completed by sellers for years in hundreds of thousands of real estate transactions across Canada, without any liability, especially when they completed the statement truthfully and to the best of their knowledge.
Yet there have also been cases where sellers who signed the statement were held liable for the buyer’s damages when problems were discovered after closing. In a review of these decisions, the judge determined on a factual basis that the seller either knew that what they were saying was false or had deliberately concealed a defect which was found out afterwards. “It was not the SPIS form that got the seller in trouble,” says Weisleder. “It was about not telling the truth when completing the form.”
Finally, Weisleder stresses, “Even if you or your seller are not required by law to disclose the information, the bar in terms of the level of professionalism required of REALTORS® continues to move higher. By fulfilling your legal and ethical duties regarding the detection and disclosure of defects, you will insulate yourself and your clients from a lot of unnecessary pain and suffering.”
For more information about OREA’s Defects and the Importance of Disclosure online course visit www.orea.com.
Mandatory home energy audits stopped
The Ministry of Energy has decided not to proceed with plans to introduce mandatory home energy audits on real estate transactions. OREA lobbied strongly against mandatory home energy audits, telling government that they represented bad public policy and would be unworkable in practice. This decision represents a significant victory for OREA and is due in no small measure to the efforts of the Association's volunteers, Member Board PAC Chairs and the 15,000 Ontario REALTORS® who responded to OREA's Call-for-Action. To learn more about mandatory home energy audits visit www.orea.com and click on OREA Issues Summaries under the Government Relations tab
Wednesday, October 6, 2010
CREA RE: COMPETITION BUREAU UPDATE
Date:October 4, 2010
To:Executive Directors of all
Real Estate Boards and Provincial/Territorial Associations
From:The Canadian Real Estate Association (CREA)
RE:Competition Bureau Update
As promised in CREA’s first dispatch regarding the tentative agreement with the Competition Bureau, we are writing to update you on a number of issues.
CREA and its lawyers have held their first in a series of meetings with the leadership of Boards and Associations. More meetings will take place prior to SGM, including this week and next.
Additionally, while media coverage has generally been balanced, there have been some factual errors in certain stories.
As you know, last Thursday the Board of Directors of CREA approved a settlement with the Competition Bureau, subject to member approval at the Special General Meeting in St. John’s later this month.
Typically when an agreement is reached between two litigants, the deal is complete once it is signed by both parties and filed with the court. In this case the agreement with the Bureau will only be final if members vote in favour at the SGM. Until that time the agreement is in escrow. In the event the agreement is not ratified, the litigation would continue its course, with Tribunal hearings beginning in April.
For these reasons, we cannot publicly disclose the proposed agreement. However, we have started and will continue, where practical in the short time between now and the SGM, with detailed presentations to Boards and Associations regarding all elements of the agreement. In the meantime, it is critically important not to publicly divulge details,
since the agreement is not final and the litigation continues at least until the vote in St. John’s.
While the CREA leadership will only discuss specifics in our individual meetings with Board and Associations, we would like to correct some of the factually inaccurate reporting, which we have done over the weekend and will continue to do.
The agreement does not grant public access to the MLS® System, it remains a member to member service. Moreover, it does not require brokerages to change their business models. The agreement specifies that Boards and Associations cannot prevent or discriminate against mere posting business models. CREA has always maintained its rules do no such thing.
We look forward to working with all of you in preparation for the SGM to ensure we address your questions and any concerns.
Yours truly,
Georges Pahud
To:Executive Directors of all
Real Estate Boards and Provincial/Territorial Associations
From:The Canadian Real Estate Association (CREA)
RE:Competition Bureau Update
As promised in CREA’s first dispatch regarding the tentative agreement with the Competition Bureau, we are writing to update you on a number of issues.
CREA and its lawyers have held their first in a series of meetings with the leadership of Boards and Associations. More meetings will take place prior to SGM, including this week and next.
Additionally, while media coverage has generally been balanced, there have been some factual errors in certain stories.
As you know, last Thursday the Board of Directors of CREA approved a settlement with the Competition Bureau, subject to member approval at the Special General Meeting in St. John’s later this month.
Typically when an agreement is reached between two litigants, the deal is complete once it is signed by both parties and filed with the court. In this case the agreement with the Bureau will only be final if members vote in favour at the SGM. Until that time the agreement is in escrow. In the event the agreement is not ratified, the litigation would continue its course, with Tribunal hearings beginning in April.
For these reasons, we cannot publicly disclose the proposed agreement. However, we have started and will continue, where practical in the short time between now and the SGM, with detailed presentations to Boards and Associations regarding all elements of the agreement. In the meantime, it is critically important not to publicly divulge details,
since the agreement is not final and the litigation continues at least until the vote in St. John’s.
While the CREA leadership will only discuss specifics in our individual meetings with Board and Associations, we would like to correct some of the factually inaccurate reporting, which we have done over the weekend and will continue to do.
The agreement does not grant public access to the MLS® System, it remains a member to member service. Moreover, it does not require brokerages to change their business models. The agreement specifies that Boards and Associations cannot prevent or discriminate against mere posting business models. CREA has always maintained its rules do no such thing.
We look forward to working with all of you in preparation for the SGM to ensure we address your questions and any concerns.
Yours truly,
Georges Pahud
GTA REALTORS® Report Monthly Resale Housing Market Figures
TORONTO, October 5, 2010 -- Greater Toronto REALTORS® reported 6,310 sales
through the Multiple Listing Service® (MLS®) in September 2010.
This represented a 23 per cent decrease compared to the 8,196 sales recorded during the same period in 2009. Through the first nine months of the year, sales amounted to 69,069 – up four per cent compared to the first three quarters of 2009.
“The level of sales in the second half of 2010 has been lower, representing a balancing out period following record levels of sales in the latter half of 2009 and first few months of 2010. We remain on track for one of the best years in history for existing home transactions in the GTA,” said Toronto Real Estate Board President Bill Johnston.
The average price for September transactions was $427,329– up five per cent
compared to the average of $406,877 reported in September 2009. The average
selling price through the first nine months of the year was $429,657.
“Resale homes in the GTA remain affordable,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
“It is important to consider the positive impact of declining mortgage rates over the past two decades. Simply considering home prices relative to incomes does not allow for an accurate analysis of affordability,” continued Mercer. “The share of average household income going toward a mortgage payment on the average priced home in the GTA remains within accepted lendingguidelines. This is why the average home selling price has continued to grow.”
For the entire article and the charts included by the Toronto Real Estate Board select the link above.
through the Multiple Listing Service® (MLS®) in September 2010.
This represented a 23 per cent decrease compared to the 8,196 sales recorded during the same period in 2009. Through the first nine months of the year, sales amounted to 69,069 – up four per cent compared to the first three quarters of 2009.
“The level of sales in the second half of 2010 has been lower, representing a balancing out period following record levels of sales in the latter half of 2009 and first few months of 2010. We remain on track for one of the best years in history for existing home transactions in the GTA,” said Toronto Real Estate Board President Bill Johnston.
The average price for September transactions was $427,329– up five per cent
compared to the average of $406,877 reported in September 2009. The average
selling price through the first nine months of the year was $429,657.
“Resale homes in the GTA remain affordable,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
“It is important to consider the positive impact of declining mortgage rates over the past two decades. Simply considering home prices relative to incomes does not allow for an accurate analysis of affordability,” continued Mercer. “The share of average household income going toward a mortgage payment on the average priced home in the GTA remains within accepted lendingguidelines. This is why the average home selling price has continued to grow.”
For the entire article and the charts included by the Toronto Real Estate Board select the link above.
Saturday, October 2, 2010
Home sellers celebrate proposed rule change
Updated: Fri Oct. 01 2010 17:48:02
Source: Jessica Earle, ctvedmonton.ca
A tentative agreement between the Competition Bureau and the Canadian Real Estate Association (CREA) aims to make it less costly for people to list their properties on the Multiple Listing Service (MLS) – a system that accounts for 90 per cent of all home sales.
In February, federal watchdogs announced they would challenge the CREA's "anti-competitive rules," arguing too many consumers were being forced to purchase a number of costly services they may not require, such as the presentation of offers and negotiation of a final deal, in order to list their home on the market.
The new deal would see the rules change so that people only need to hire an agent for the initial listing process, allowing them to complete the rest of the sale on their own if they so choose.
"If you don't want the full service package, if you're confident in what you can do and you want to be more involved in the selling process then it gives you a contractual way that's very clear up front to do that," said real estate expert Tsur Somerville.
Some local sellers are already welcoming the news.
"I'm willing to do the leg work because I want that money in my pocket," said Diane Sivertson, who's spent the past three months trying to sell her Sherwood Park townhouse privately.
"At the end of the day I still need to have money for a down payment on something else to pay the bills. That's what it comes down to - their commission is too high.
"Now I can go to a realtor and say, ‘I want this from you, but I don't want this, I'll find my own lawyer.' It [gives] me a few more options."
The CREA says it reached a deal with the Commissioner on Thursday. A press release states "the consent agreement … would avoid unnecessary and expensive litigation proceedings" to solve the matter.
Property specialists suggest the trade association may also be bowing to public pressure. Earlier this week a group of real estate brokers kicked off a new cross-Canada site-selling network aimed at crushing the monopoly of the MLS system.
The industry still needs to ratify the agreement during a general meeting in St. John's on October 24th, and officials say the deal will be held in escrow until members grant their approval.
With Files from Scott Roberts
For the fulll article click th link.
Source: Jessica Earle, ctvedmonton.ca
A tentative agreement between the Competition Bureau and the Canadian Real Estate Association (CREA) aims to make it less costly for people to list their properties on the Multiple Listing Service (MLS) – a system that accounts for 90 per cent of all home sales.
In February, federal watchdogs announced they would challenge the CREA's "anti-competitive rules," arguing too many consumers were being forced to purchase a number of costly services they may not require, such as the presentation of offers and negotiation of a final deal, in order to list their home on the market.
The new deal would see the rules change so that people only need to hire an agent for the initial listing process, allowing them to complete the rest of the sale on their own if they so choose.
"If you don't want the full service package, if you're confident in what you can do and you want to be more involved in the selling process then it gives you a contractual way that's very clear up front to do that," said real estate expert Tsur Somerville.
Some local sellers are already welcoming the news.
"I'm willing to do the leg work because I want that money in my pocket," said Diane Sivertson, who's spent the past three months trying to sell her Sherwood Park townhouse privately.
"At the end of the day I still need to have money for a down payment on something else to pay the bills. That's what it comes down to - their commission is too high.
"Now I can go to a realtor and say, ‘I want this from you, but I don't want this, I'll find my own lawyer.' It [gives] me a few more options."
The CREA says it reached a deal with the Commissioner on Thursday. A press release states "the consent agreement … would avoid unnecessary and expensive litigation proceedings" to solve the matter.
Property specialists suggest the trade association may also be bowing to public pressure. Earlier this week a group of real estate brokers kicked off a new cross-Canada site-selling network aimed at crushing the monopoly of the MLS system.
The industry still needs to ratify the agreement during a general meeting in St. John's on October 24th, and officials say the deal will be held in escrow until members grant their approval.
With Files from Scott Roberts
For the fulll article click th link.
Realtors reach accord with Competition Bureau on listings
By QMI Agency
Source: The Toronto Sun
Last Updated: October 1, 2010 9:11am
The Canadian Real Estate Association said it has reached an accord with the competition regulator over access to the Multiple Listing Service through which 90% of properties in Canada are bought and sold.
CREA, in a statement late Thursday, said the agreement needs to be ratified by members at a meeting in St. John's, N.L., on Oct. 24. It said it won’t disclose further details of the accord until it receives membership approval.
“This agreement is the result of extensive negotiations between CREA and the Competition Bureau," says CREA president Georges Pahud. "Both sides gained a better understanding of their respective concerns through our discussions. We are pleased that a resolution has been reached, subject to member approval."
The Competition Bureau is concerned that the MLS system unfairly restricts competition and restricts the freedom of choice for consumers and as a result pushes up costs. That’s because to list a property through MLS the consumer also has to accept and pay for a broad range of services from a real estate agent even if they don’t want them.
Earlier this week a group of five real estate brokers, led by ByTheOwner.com launched a new nationwide property selling network aimed at breaking the dominance of the MLS system. Property specialists said it’s likely to be the first of many.
CREA has always been of the view that its rules regarding member board MLS systems do not in any way prevent or restrict a broad range of business models, it said. In CREA's view, the consent agreement reflects this reality and would avoid unnecessary and expensive litigation proceedings.
Source: The Toronto Sun
Last Updated: October 1, 2010 9:11am
The Canadian Real Estate Association said it has reached an accord with the competition regulator over access to the Multiple Listing Service through which 90% of properties in Canada are bought and sold.
CREA, in a statement late Thursday, said the agreement needs to be ratified by members at a meeting in St. John's, N.L., on Oct. 24. It said it won’t disclose further details of the accord until it receives membership approval.
“This agreement is the result of extensive negotiations between CREA and the Competition Bureau," says CREA president Georges Pahud. "Both sides gained a better understanding of their respective concerns through our discussions. We are pleased that a resolution has been reached, subject to member approval."
The Competition Bureau is concerned that the MLS system unfairly restricts competition and restricts the freedom of choice for consumers and as a result pushes up costs. That’s because to list a property through MLS the consumer also has to accept and pay for a broad range of services from a real estate agent even if they don’t want them.
Earlier this week a group of five real estate brokers, led by ByTheOwner.com launched a new nationwide property selling network aimed at breaking the dominance of the MLS system. Property specialists said it’s likely to be the first of many.
CREA has always been of the view that its rules regarding member board MLS systems do not in any way prevent or restrict a broad range of business models, it said. In CREA's view, the consent agreement reflects this reality and would avoid unnecessary and expensive litigation proceedings.
Real estate fees not headed for basement despite new rules
Steve Ladurantaye
Real Estate Reporter— Globe and Mail Update
Published Friday, Oct. 01, 2010 10:30PM EDT
Last updated Saturday, Oct. 02, 2010 12:42AM EDTCanadians shouldn’t expect a sharp drop in real estate fees, with the country’s largest brokerages vowing to hold the line on the commissions despite rules that make it easier for discounters to muscle in on their businesses.
While a deal between the Competition Bureau and the Canadian Real Estate Association means agents will be able to break real estate services into small, individually priced chunks rather than charge a set commission for a complete sale, companies such as Royal LePage don’t plan to offer à la carte services.
That leaves the door open for a small group of discounters who have already set up shop across the country, offering those who want to sell their own homes to buy a listing on the real-estate funded Multiple Listing Service for as little as $109.
For the entire article click the link.
Real Estate Reporter— Globe and Mail Update
Published Friday, Oct. 01, 2010 10:30PM EDT
Last updated Saturday, Oct. 02, 2010 12:42AM EDTCanadians shouldn’t expect a sharp drop in real estate fees, with the country’s largest brokerages vowing to hold the line on the commissions despite rules that make it easier for discounters to muscle in on their businesses.
While a deal between the Competition Bureau and the Canadian Real Estate Association means agents will be able to break real estate services into small, individually priced chunks rather than charge a set commission for a complete sale, companies such as Royal LePage don’t plan to offer à la carte services.
That leaves the door open for a small group of discounters who have already set up shop across the country, offering those who want to sell their own homes to buy a listing on the real-estate funded Multiple Listing Service for as little as $109.
For the entire article click the link.
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