Members of the Canadian Real Estate Association agreed Monday to loosen rules governing the board’s Multiple Listing Service in a move that could usher in new-found power and savings for prospective homebuyers and sellers involved in real estate transactions.
"CREA is pleased that the amendments have passed,” CREA president Georges Pahud said in a statement Monday.
Roughly 300 real estate professionals voted 87% in favour of proposed amendments to CREA’s rule No. 17, which governs the board’s MLS system, the association’s spokesperson Alyson Fair told QMI from the ballot location inside Ottawa’s Westin Hotel.
Fair could not discuss the amendments in detail since the issue is before a federal tribunal but did confirm the changes make it possible for homeowners to pay a one-time fee to list a property on the MLS - which would ensure maximum exposure - and have prospective buyers contact them directly by phone.
With the vote, CREA believes it has fully addressed concerns raised by the Competition Bureau without sacrificing the quality of information on the MLS, the association said.
But the Bureau responded saying it will continue with its challenge against what it calls anti-competitive rules imposed by CREA on agents and consumers who list properties on its online MLS system.
It also said Monday's amendments deny consumer choice and stifle competition.
"There is nothing in these proposals that we haven't seen before and they do not solve the problem," said Commissioner of Competition Melanie Aitken.
"They are a step in the wrong direction. These amendments amount to a blank cheque allowing CREA and its members to create rules that could have even greater anti-competitive consequences," she said.
The overwhelming majority of real estate transactions in Canada stem from the MLS system, which is run by CREA and keeps key sales information – including newly listed properties, past selling prices and neighbourhood comparisons – hidden from non-members.
Aitken has said CREA’s rules force homeowners to pay for services they “do not need” because all consumers looking to list a property on MLS must purchase a pre-determined set of additional services from a real estate agent, such as the presentation of offers and negotiation of a final deal.
The Internet has changed the way prospective homebuyers shop for properties and has raised questions about whether real estate services in Canada are overvalued.
A 2007 court decision in the U.S. opened up similar data to Americans, leading to lower real estate fees as well as a wide range of innovative Web-based real estate services.
Opening up the MLS would put downward pressure on real estate fees, the Bureau has said.
