New CREA Regulations - Too Little, Too Late

ForSalebyOwnerHomes.com operates within the United States of America, and does not have a broker network currently extending into Canada. But, we sure think it's interesting watching the Canadian flat fee MLS drama play out! From the sidelines, the similarities to our American DOJ vs. NAR fist fight are quite entertaining.

On Monday, the Canadian Real Estate Association (CREA) approved changes to their legislation that will allow a little more wiggle room for those organizations wishing to offer flat fee MLS listing services. Specifically, folks wanting to buy or sell their homes will have more power to handle some details of the transaction on their own.

With the new legislation approved and waiting to be implemented "as soon as it is reasonable at each local board", a client will be able to pay a real estate agent a flat fee to list their property on the MLS. Additionally, agents are required to provide the home seller's contact phone number to an interested buyer, if the seller opts to offer this information.

These changes were instigated when Canada's Competition Bureau launched an investigation against CREA, saying that the current system's requirement that all consumers listing within MLS must 'employ' an agent throughout the sales process leads to higher prices for consumers.

Even with this new legislation, the bureau says these changes don't go far enough because CREA can still change rules and create new restrictions on organizations or agents who try to offer innovative services. A Competition Tribunal will be held to further investigate the matter.

Tribunals aside, we're impressed with the aggressiveness of newly-appointed Competition Bureau Commissioner Melanie Aitken who has vowed to improve the bureau's record of going to bat against organizations accused of anti-competitive behavior.

All of this news sounds all too familiar to those of us here in America, backing the Department of Justice's fight against the National Association of Realtors (NAR). To read about the latest efforts by the DOJ in their battle with the traditional real estate industry, see the links available on our website.

Sigh. I'm brimming with frustration that this is even a battle. Organizations like CREA and NAR aren't preventing consumers from being harmed in anyway. Rather, they're battling the evolution of an industry. And preventing change for the better, just so you can make a few bucks, is wrong.