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.