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.
Showing posts with label Competition bureau. Show all posts
Showing posts with label Competition bureau. Show all posts
Sunday, October 24, 2010
Saturday, October 2, 2010
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.
Tuesday, March 23, 2010
CREA MEMBERSHIP APPROVES RULE AMENDMENTS
OTTAWA – March 22, 2010 – Today, during its Annual General Meeting (AGM) at the Westin Hotel, the membership of the Canadian Real Estate Association (CREA) approved amendments clarifying CREA’s rules relating to real estate Boards’ MLS® Systems.
“CREA is pleased that the amendments have passed”, says CREA president Georges Pahud.
Through these proactive clarifications of the existing rules, CREA believes that the concerns raised by the Competition Bureau are fully addressed. At the same time, these amendments ensure the continued integrity of MLS® Systems and the accuracy and quality of information on Board MLS® Systems that Canadians have come to trust.
About The Canadian Real Estate Association
The Canadian Real Estate Association (CREA) is one of Canada's largest single-industry trade associations, representing more than 98,000 real estate Brokers/agents and salespeople working through more than 100 real estate Boards and Associations.
For more information, please contact:
Alyson Fair
613-237-7111 or 613-884-1460
Email: afair@crea.ca
“CREA is pleased that the amendments have passed”, says CREA president Georges Pahud.
Through these proactive clarifications of the existing rules, CREA believes that the concerns raised by the Competition Bureau are fully addressed. At the same time, these amendments ensure the continued integrity of MLS® Systems and the accuracy and quality of information on Board MLS® Systems that Canadians have come to trust.
About The Canadian Real Estate Association
The Canadian Real Estate Association (CREA) is one of Canada's largest single-industry trade associations, representing more than 98,000 real estate Brokers/agents and salespeople working through more than 100 real estate Boards and Associations.
For more information, please contact:
Alyson Fair
613-237-7111 or 613-884-1460
Email: afair@crea.ca
Monday, March 22, 2010
Watchdog rejects proposed real-estate rule change
Date: Mon. Mar. 22 2010 10:31 PM ET
The Competition Bureau has panned a move by the Canadian Real Estate Association to give private home-sellers access to the MLS database, calling it a "step in the wrong direction" that will not reduce costs.
About 300 real estate agents from across Canada who attended the association's annual general meeting voted on the amendments, which will allow home sellers to pay a flat fee to have their homes listed on the Multiple Listing Service and then handle the negotiations themselves.
Currently, agents are paid a commission on the transaction in exchange for handling the listing and price negotiations.
Private sellers must also have an agent in order to list their property in the MLS database, and that agent must be involved throughout the sales process.
The association's rule changes came about after the Competition Bureau voiced concerns that the current system drives up the cost of real estate for individuals.
But the cost to sellers of listing a home and then going it alone is unclear and the Competition Bureau argues the amendments don't allow realtors to offer clients "a la carte" services.
"They are a step in the wrong direction," Competition Bureau commissioner Melanie Aitken said in a statement. "These amendments amount to a blank cheque allowing CREA and its members to create rules that could have even greater anti-competitive consequences."
More than 98,000 real estate agents, brokers and salespeople are members of the association, and only they are permitted to list homes on the MLS database.
The CREA said it was willing to review the process after the bureau filed charges with the Competition Tribunal alleging that real estate agents can't offer their clients "a la carte," fee-based services. The bureau also complained that the MLS rules prevented sellers from negotiating their own deals.
The new guidelines will come into effect as soon as each of the country's real state boards approve them.
Dale Ripplinger, the CREA's outgoing president, would not explain to reporters Monday how the amendments will help agents or home sellers.
Ripplinger said the changes are "too technical in nature and wouldn't make sense to anybody except realtors."
Georges Pahud, the CREA's president-elect, said he was pleased that the amendments had been passed. The association has now addressed the Competition Bureau's concerns, he said.
But Aitken said there is nothing new in the CREA's proposed changes. The Bureau plans to continue to challenge what it calls anti-competitive rules imposed by CREA.
"We have repeatedly advised CREA's leadership that these amendments do not solve our ongoing competition concerns and I reiterated this directly to CREA as recently as last week in a letter to the president," Aitken said.
The real estate association said it will dispute the Competition Bureau's accusations.
The association must submit a formal response by Thursday.
With a report by CTV's Richard Madan in Ottawa and files from The Canadian Press
To see the CTV news report go to the following link:
http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20100322/crea_rules_100322/20100322?hub=TopStoriesV2
The Competition Bureau has panned a move by the Canadian Real Estate Association to give private home-sellers access to the MLS database, calling it a "step in the wrong direction" that will not reduce costs.
About 300 real estate agents from across Canada who attended the association's annual general meeting voted on the amendments, which will allow home sellers to pay a flat fee to have their homes listed on the Multiple Listing Service and then handle the negotiations themselves.
Currently, agents are paid a commission on the transaction in exchange for handling the listing and price negotiations.
Private sellers must also have an agent in order to list their property in the MLS database, and that agent must be involved throughout the sales process.
The association's rule changes came about after the Competition Bureau voiced concerns that the current system drives up the cost of real estate for individuals.
But the cost to sellers of listing a home and then going it alone is unclear and the Competition Bureau argues the amendments don't allow realtors to offer clients "a la carte" services.
"They are a step in the wrong direction," Competition Bureau commissioner Melanie Aitken said in a statement. "These amendments amount to a blank cheque allowing CREA and its members to create rules that could have even greater anti-competitive consequences."
More than 98,000 real estate agents, brokers and salespeople are members of the association, and only they are permitted to list homes on the MLS database.
The CREA said it was willing to review the process after the bureau filed charges with the Competition Tribunal alleging that real estate agents can't offer their clients "a la carte," fee-based services. The bureau also complained that the MLS rules prevented sellers from negotiating their own deals.
The new guidelines will come into effect as soon as each of the country's real state boards approve them.
Dale Ripplinger, the CREA's outgoing president, would not explain to reporters Monday how the amendments will help agents or home sellers.
Ripplinger said the changes are "too technical in nature and wouldn't make sense to anybody except realtors."
Georges Pahud, the CREA's president-elect, said he was pleased that the amendments had been passed. The association has now addressed the Competition Bureau's concerns, he said.
But Aitken said there is nothing new in the CREA's proposed changes. The Bureau plans to continue to challenge what it calls anti-competitive rules imposed by CREA.
"We have repeatedly advised CREA's leadership that these amendments do not solve our ongoing competition concerns and I reiterated this directly to CREA as recently as last week in a letter to the president," Aitken said.
The real estate association said it will dispute the Competition Bureau's accusations.
The association must submit a formal response by Thursday.
With a report by CTV's Richard Madan in Ottawa and files from The Canadian Press
To see the CTV news report go to the following link:
http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20100322/crea_rules_100322/20100322?hub=TopStoriesV2
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