Canada Real Estate: Breaking down anti-competitive practices
By Anthony Longo 2 11 2009
What a day … between the WSJ article today on the RealComp MLS “loss” to the FTC we have even more hot news off the press regarding similar issues going on in Canada. I guess this will fast-track our Toronto condo based operation…Canada here we come!
The article….
Canadians in the housing market will pay less in realty commissions and fees if the federal Competition Bureau has its way.
In a landmark investigation, the bureau has concluded the Canadian Real Estate Association has anti-competitive rules and must change its ways, according to documents obtained by the Star.
Details of a settlement have yet to be decided, but the bureau’s findings are expected to have a profound impact on the real estate industry – by permitting more innovative discount brokers into the market while allowing sellers to list their properties less expensively on the Multiple Listing Service.
With a membership of more than 96,000, Ottawa-based CREA is the largest real estate organization in Canada and represents the majority of the nation’s realtors.
“The Bureau is concerned that CREA’s rules have restricted consumer choice and limited the scope of alternative business models,” says an internal memo by CREA president Dale Ripplinger. “Unfortunately, the Bureau seems to believe that CREA’s rules … create restrictions and barriers.”
Associated Article (The Globe & Mail)
Interesting article!
I think discount brokerages could be pushed out be conventional brokerages before when the public didn’t have any power. As times have changed and the internet has put more power at the home buyer/sellers fingertips, I don’t think conventional brokerages can push around the discount brokerages as much.
Buyers are choosing what they want to view now and have access to all the listings on the internet and aren’t dependent on their Realtor anymore to tell them which places are for sale…. Just my 2 cents