New MLS policy won't prevent tribunal
February 13, 2010
Tony Wong
BUSINESS REPORTER
The Canadian Real Estate Board was about to propose key rule changes at its March annual general meeting that it hoped would satisfy the Competition Bureau and avoid a meeting with the Competition Tribunal.
As first reported in the Star on Wednesday, internal documents show substantial amendments to the rules. One of the big changes included the deletion of a controversial rule that said listings could not be posted without having a realtor represent the seller for the entire transaction.
The "mere posting" rule, as it was called, was controversial because it meant sellers could not simply list their property without paying for a fuller basket of services.
According to CREA, "A mere posting occurs when the listing agreement relieves the listing member of any obligations under the rules, including the obligation that the listing realtor remain the agent of the seller throughout the term of the contract."
Removing this rule would theoretically allow agents to post listings for a cheaper fee, as it did not require the agent to represent the seller through the entire process.
However, Commissioner of Competition Melanie Aitken said the changes didn't go far enough.
"The suggestions didn't solve our principal concerns, regarding consumer choice and flexibility for agents and introducing competition to the markets," said Aitken.
CREA president Dale Ripplinger said his organization was negotiating in "good faith" and was blindsided by the decision to go to a tribunal.
But according to a source, the Competition Bureau "pulled the trigger" because after three years of talking to CREA the bureau was "fed up. They were worried this was another delay tactic. They were worried CREA would take this to a vote, and then start making more changes and more delays. They just wanted clarity."
Toronto Star