A tentative agreement between the Competition Bureau and the Canadian Real Estate Association (CREA) aims to make it less costly for people to list their properties on the Multiple Listing Service (MLS) – a system that accounts for 90 per cent of all home sales.
In February, federal watchdogs announced they would challenge the CREA's "anti-competitive rules," arguing too many consumers were being forced to purchase a number of costly services they may not require, such as the presentation of offers and negotiation of a final deal, in order to list their home on the market.
The new deal would see the rules change so that people only need to hire an agent for the initial listing process, allowing them to complete the rest of the sale on their own if they so choose.
"If you don't want the full service package, if you're confident in what you can do and you want to be more involved in the selling process then it gives you a contractual way that's very clear up front to do that," said real estate expert Tsur Somerville.
Some local sellers are already welcoming the news.
"I'm willing to do the leg work because I want that money in my pocket," said Diane Sivertson, who's spent the past three months trying to sell her Sherwood Park townhouse privately.
"At the end of the day I still need to have money for a down payment on something else to pay the bills. That's what it comes down to - their commission is too high.
"Now I can go to a realtor and say, ‘I want this from you, but I don't want this, I'll find my own lawyer.' It [gives] me a few more options."
The CREA says it reached a deal with the Commissioner on Thursday. A press release states "the consent agreement … would avoid unnecessary and expensive litigation proceedings" to solve the matter.
Property specialists suggest the trade association may also be bowing to public pressure. Earlier this week a group of real estate brokers kicked off a new cross-Canada site-selling network aimed at crushing the monopoly of the MLS system.
The industry still needs to ratify the agreement during a general meeting in St. John's on October 24th, and officials say the deal will be held in escrow until members grant their approval.
With Files from Scott Roberts
