Federal Competition Bureau investigates CREA’s rules over potentially inflated commission rates

The federal Competition Bureau is investigating the Canadian Real Estate Association (CREA) over two policies that may be inflating real estate commission rates. The inquiry, launched in June, focuses on:

1. Buyer Broker Commission Rule: Requires sellers to offer part of their agent’s commission to the buyer’s agent to list a property on MLS. The Bureau suspects this may lead to higher commissions and conflict with buyers’ best interests.
2. Realtor Cooperation Policy: Requires most residential listings to be posted on MLS within three days. The Bureau is concerned this could disadvantage smaller brokerages with fewer resources.

CREA has not been found guilty of any wrongdoing. Its chair, James Mabey, defends the policies, claiming they are pro-competitive, increase transparency, and improve services. The investigation is ongoing, with the Bureau seeking court approval to access CREA’s records from 2019.

Read More!