Competition Bureau Recommends Changes To Real Estate Practices In Canada

November 3, 2009 4:07 p.m. EST

Ottawa, Ontario (AHN) - Following the completion by the Competition Bureau of a two-year probe, the agency has recommended changes to the practice of real estate selling in Canada. Among the major change is the Canadian Real Estate Association was asked to amend it rules that only a license realtor must act as agent for the seller through the listing contract on the Multiple Listing Services.

The new rules is expected to result in less realty commissions home and lot buyers in Canada have to pay agents. The CREA is negotiating with the bureau regarding the rule revision.

CREA president Dale Ripplinger have acknowledged present association regulations limits consumer choice and restricts scope of alternative business models, but CREA disagrees with the bureau's recommendations.

In a submission to the bureau for its draft Competitor Collaboration guidelines, the CREA asked that the guidelines provide better clarity and guidance in its treatment of agreement between principals and agents. CREA pointed out, "In order to earn a living, brokers need to be able to set policies on commissions within their own office with confidence that they are not violating the law. If agreements between principals and agents have the potential to be pursued under section 45, brokers need to be aware of this possibility, as it may mean they are no longer able to operate using their existing business models."