Dear members,

Members are advised that the Competition Bureau is investigating two of CREA’s rules and policies:

1. Rules requiring that a listing member offer some level of compensation to the co-operating (buyer) member; and
2. The REALTOR® Cooperation Policy, which requires members to list a property on an MLS® System once the property has been publicly marketed.

It's important to note that at this stage, the Bureau has not reached any determinations or conclusions about either of the areas under investigation. The REALTOR® Cooperation Policy, which came into effect at the beginning of 2024, remains in force.

When the Bureau engages in an inquiry, it is typical for them to also seek a court order to produce records and provide written responses, which is what they've done in this case. This step is part of the Bureau’s investigative process so it can determine the facts and conduct its analysis under the Competition Act.

As members may know, there are ongoing class actions regarding the compensation rules by private litigants in Canada (Sunderland and McFall). Whether or not these actions in Canada disclose a viable legal claim under Canadian law continues to be disputed before the courts. CREA is not aware of any other Bureau inquiry in connection with cooperating broker compensation or the REALTOR® Cooperation Policy.

While this will likely give voice to some public commentary, as with any ongoing legal or regulatory issue, CREA is limited in its ability to discuss the matter publicly.

We will keep you informed of any relevant developments. In the meantime, members are advised to direct all questions or public inquiries to Paul Feuer, CREA’s Senior Competition Counsel.

(Adapted from a CREA communiqué)

Stephanie Roy

Chief Operating Officer