“First and foremost, let me be clear: there is no privatization happening with Realtor.ca. Realtor.ca will remain completely owned by CREA, and realtors will continue to own it through their membership in CREA.”

This is something Janice Myers, the new CEO of the Canadian Real Estate Association (CREA), stressed during our recent time together in Ottawa.

Aside from pressing issues — like the “privatization” of Realtor.ca, the Realtor Cooperation Policy and the commission lawsuits — we had the opportunity to discuss her career trajectory, her first 100 days in the role and her vision for the future.

The full video interview is available to watch. For transparency, only minor edits were made to ensure you can see the complete conversation and form your own judgments.

An industry veteran

Myers comes highly qualified for her role. Her background in association management and experience working with a real estate team in Vernon, British Columbia, paved the way for her position at the Okanagan Mainline Real Estate Board in 2001.

In 2014, a new opportunity arose: “My husband and I decided it was time for a change, and literally the next day, I got a call about the CEO position in Ottawa.” So they relocated, and for the next decade, Myers served as the CEO of the Ottawa Real Estate Board.

Prior to this interview, I talked to people who have worked with her in the past to get their perspective on her leadership.

Without exception, every single person had nothing but effusive praise. It’s a feeling of excitement for what she can do in her new role and trust in her ability to do it well.

At a time in our industry where it seems many are divided on leadership at different levels and trust in the organized side of the industry, Myers seems to buck that trend.

The focus as CEO

“My first 100 days have been focused on listening and learning,” she shares. “I’ve embarked on a listening tour, meeting with colleagues across the country, both virtually and in person, to understand their challenges and opportunities.”

While she does come with a wealth of experience, Myers has spent the last 10 years at the local board level. Now, she has to get up to speed on how it changes when it comes to the national level. For the CEO of CREA, there are three critical components of the role.

The first is advocacy.

There was no time to go slowly. Out of the gate, the team at CREA had policy recommendations in the government’s 2024 housing plan. When The Hill Times put out its list of The Top 100 Lobbyists for 2024, Myers made the list. She was very quick to point out that the team at CREA, not her, is the reason for inclusion on the list.

Enhancing and protecting the reputation of realtors is another key focus for Myers. “Reputation is vital in this environment, especially as consumers continue to press for transparency,” she states.

The third pillar of Myers’ focus is realtor and consumer technology, with Realtor.ca being a primary asset.

New structure for Realtor.ca 

“First and foremost, let me be clear: there is no privatization happening with Realtor.ca,” Janice states unequivocally. “Realtor.ca will remain completely owned by CREA, and realtors will continue to own it through their membership in CREA.”

This clarification addresses fears that Realtor.ca might be sold off or opened to outside investors.

Myers assured me that this is not the case. Instead, the focus is on maintaining control while enhancing the platform’s capabilities and ensuring it continues to meet the evolving needs of both consumers and realtors.

She emphasized three main points solidified by a special task force and endorsed at a special general meeting:

1. Ownership. Realtor.ca will remain wholly owned by CREA, ensuring that realtors retain ownership through their membership.
2. Governance. The platform will be managed with an independent board and as a taxable entity, allowing for greater operational flexibility.
3. Revenue reinvestment. Any profit generated will be reinvested back into the platform for the benefit of realtors and consumers alike.

“The idea is to provide Realtor.ca with the operational independence it needs to thrive and compete against heavily financed competitors,” Myers explains. “This structure allows us to diversify revenue streams, reducing our reliance on membership dues and ensuring the platform’s long-term viability.”

One of the main concerns among realtors has been how CREA plans to generate revenue from Realtor.ca without compromising its integrity or the interests of its members. Myers was clear that Realtor.ca would not sell leads to realtors. Instead, the focus is on exploring other revenue opportunities.

“We’ve identified about 30 different revenue opportunities and are narrowing down to five key areas,” she says. “These include leveraging our best-in-class data distribution capabilities, always ensuring that any data shared externally maintains the Realtor.ca brand and benefits our members.”

When pressed on whether allowing the data-distribution feed on third-party websites could lead to those websites selling leads to realtors, she emphasized that they’d make it part of the contracts not to allow that. The data-distribution feeds don’t contain member emails or contact information, and all consumer inquiries flow through Realtor.ca. This is the way it works currently, has always worked and will continue to work.

Myers highlighted the importance of maintaining transparency and cooperation with boards and associations across the country. “We want to ensure that everyone understands where these revenue opportunities are coming from and how they will benefit the entire realtor community,” she says. 

While they’re making the case for five specific revenue opportunities, Myers declined to provide them until she’s had the chance to bring them to the boards and associations first.

“We’re listening to our members and ensuring that any steps we take are in their best interest,” she assures. “Our goal is to keep Realtor.ca as the premier consumer portal in Canada, owned and operated by the industry for the industry.”

“Realtor.ca is a crucial asset for our industry,” Janice concludes. “By giving it the independence to innovate and compete, we’re ensuring it continues to serve the needs of consumers and realtors effectively. This is about building a sustainable future where our platform can grow and adapt alongside the industry.”

Keeping Realtor.ca within CREA as it currently stands as a non-profit could jeopardize its not-for-profit status. By removing Relator.ca from the not-for-profit arm of CREA, the association has more flexibility on how to generate revenue — revenue that Myers affirms will be reinvested back into the platform.

The Realtor Cooperation Policy

In addition to the potential changes with Realtor.ca, the new Realtor Cooperation Policy, which limits the use of exclusive listings, has sparked significant discussion. Few topics at REM generate as much commentary as this policy.

So I wanted to ask her about it.

“The primary driver for the new exclusive listing policy is consumer demand for transparency,” Janice begins. “We’ve seen a growing call from buyers and sellers alike for more openness in the real estate process. This policy is a response to those demands.”

The new rule mandates that any property marketed publicly must be listed on the MLS system within three days. This move aims to ensure that all consumers have fair access to property information, levelling the playing field for buyers and maintaining the integrity of the MLS system.

The policy has sparked a range of reactions from the real estate community. Some agents fear it might drive exclusive listings further underground, while others worry about the impact on marketing strategies. Janice acknowledged these concerns but emphasized the policy’s benefits.

“We understand that there are scenarios where exclusive listings can serve a purpose,” she says. “However, the policy doesn’t eliminate the possibility of exclusives. It simply ensures that once you start publicly marketing a property, it gets the broad exposure that only the MLS can provide.”

Janice highlighted that the policy strikes a balance between transparency and consumer choice. “If a seller has privacy or security concerns, they can still choose to keep their listing exclusive. The key is that once you start public marketing, it should be accessible to all potential buyers through the MLS.”

For realtors navigating this new policy, Janice advised open communication with clients. “It’s crucial to have honest conversations with your clients about their options and the benefits of MLS exposure. Realtors have an ethical duty to act in their clients’ best interests, and this policy supports that by promoting transparency and competition.”

Commissions

In the United States, there are several high-profile class-action lawsuits challenging the way real estate commissions are structured and disclosed. As a result, the U.S. real estate industry faces significant legal and regulatory challenges that could reshape its commission practices.

Myers pointed out that while the real estate industries in Canada and the U.S. share similarities, there are critical differences. “In Canada, we have a much more transparent environment regarding how buyer agents are compensated,” she explains. “Over 80 per cent of transactions in Canada involve written service agreements that clearly outline how agents are paid, ensuring transparency for all parties involved.”

One of the key distinctions Janice highlighted is the regulatory environment in Canada. “Our regulatory framework is robust and designed to protect consumers,” she says. “This includes clear guidelines on commission disclosure and the roles of buyer and seller agents.” 

The structured regulatory approach in Canada helps mitigate many of the concerns that have fueled the lawsuits in the U.S. In Canada, the existing lawsuits have not been certified as class-action to date either. 

Going forward

Janice Myers’ first 100 days as CEO of CREA have set a strong foundation for the future. Few could have stepped into this role with her level of qualification and understanding of the industry’s challenges.

Leaving the meeting, I felt confident that CREA and the industry are in capable hands. Even on issues where there might be disagreement, Myers’ openness, transparency and willingness to engage are reassuring.

I understand why those I spoke with before this interview were excited about her becoming the CEO of CREA. I’m excited to see what she can do. She’s got her work cut out for her, but all signs point to success.

If we do a follow-up interview with Janice Myers in 12 months, what would you hope she accomplishes in that time? Let us know in the comments.

Disclosure: To maintain transparency with our readers, it is important to note that CREA is an advertising partner of Real Estate Magazine. This relationship does not influence our editorial content, and CREA has never requested any specific coverage.

The Canadian Real Estate Association (CREA)’s Realtor Cooperation Policy has been in effect for nearly six months now. During that time, I have been asked whether CREA can actually direct or control realtor communications. The short answer: it depends on who you ask.

CREA certainly thinks it can, and it carries a big stick. The association’s leverage to direct or control realtors’ ability to communicate with one another flows in large measure from its control over the MLS mark and other marks it controls. A realtor who does not adhere to CREA’s Realtor Cooperation Policy is subject to discipline by CREA and/or their local board.

To be clear, the restrictions in the policy are different from CREA Rules which direct that realtors using CREA’s marks, for example, must ensure that claims in real estate advertising are “accurate, clear and understandable.” That requirement obviously makes sense.   

A heavy-handed policy

I was surprised to learn the details of CREA’s policy and the restrictions it imposed on realtors and their clients. My initial thought was that this appears to be very heavy-handed. In addition to the three-day rule included in the policy, I was struck by the fact that realtors are forced to require those who want to sell their property by pocket listing, but don’t want their listing to appear on MLS, to confirm that decision in writing and to include in that confirmation: 

a “specific instruction” to their realtor not to engage in “public marketing” of their property, as defined by CREA, and an acknowledgment that not placing their property on MLS could result in the property being seen by fewer potential buyers, could result in fewer offers being received and could prevent the seller from getting the most favourable offers in terms of price or other terms.

In other words, not only does the policy place limits on realtor-to-realtor communications, but it also imposes requirements on realtors’ clients.

This places realtors in an awkward situation with their clients. It also means if a client refuses to be told what to do by CREA, their realtor could be forced to turn them away. Why? If a realtor working with a pocket listing client failed to get CREA’s required confirmation, that realtor would be in breach of the policy and subject to discipline by CREA and/or their local board.  At the limit, that could include termination of their CREA and/or board membership. They could be out of a job.

It’s also worth noting that the policy says if a pocket listing client instructs their realtor not to engage in the “public marketing” of their property, but the public marketing nevertheless occurs, for example through inadvertence, the listing “must” be placed on the MLS system, even though that would override the client’s explicit instructions to their realtor.

The policy and ‘abuse of dominance’ under the Competition Act

The Competition Act contains provisions that prevent large players in a market from acting in ways that are anti-competitive. This includes something called “abuse of dominance” which, in simple terms, is where a party, such as CREA, uses its dominant position to target a market participant or to lessen competition.

The policy may well raise serious issues under the abuse of dominance provision of the Competition Act.

First, I think there’s a good argument that CREA is in a position of dominance, given the power that the MLS mark and other marks give it over both realtors and the real estate market generally.

Second, without getting too technical, the policy could constitute a “practice of anti-competitive acts” because it appears to target certain market participants. In that regard, a study commissioned by CREA (described below), which led to the creation of the Realtor Cooperation Policy, specifically identifies pocket listings as a problem and then proposes mandatory MLS listings as the solution.

The study states that “legitimate exceptions” to mandatory MLS listings should be permitted, but it’s of course for CREA, not realtrs or homeowners, to decide what exceptions are “legitimate.” In addition, the policy may prevent or lessen competition substantially in the market for pocket listing services for realtors.

CREA says pocket listings make MLS systems less useful

CREA’s rationale for the policy can be found in a study prepared by an economist hired by CREA. That study says that “MLS Cooperatives” (an expression coined by CREA’s economist), which are underpinned by MLS systems, get their value from something called “network effects.”

Uber provides a good example of network effects. If you had just a single driver and a single rider signed up for the Uber app, it wouldn’t be very useful to anyone. But as more drivers join the app, it becomes more useful to riders and more will sign up — as more riders sign up, the app becomes more useful to drivers, and more drivers will sign up. And on it goes.

MLS systems benefit from network effects because they contain, with few exceptions, a comprehensive listing of all resale residential real estate for sale in a given area. CREA’s study suggests that pocket listings and private networks of listings can diminish the value created by MLS systems because, among other things, they can decrease the percentage of listings placed on MLS. If the listings placed on MLS decline, MLS systems could become less comprehensive, making them less useful. 

But that argument could be made by any dominant market player as a justification for engaging in anti-competitive conduct. If Uber had adopted practices to impede Lyft’s entry into the ride-sharing market, would it have been an answer for Uber to say that having a second ride-sharing app would mean that its service would be less useful because some riders and drivers might move over to Lyft? Similarly, could Uber have said to consumers wanting to move to Lyft, that it would be in their “best interests” to remain with Uber and then adopt measures to limit rider choices? 

Clearly, the answer to these questions is no. Why? Because that’s not the way competition works, with large market players dictating consumer choice and deciding what’s in the best interest of individual consumers, as well as the broader public.

Competition works when consumers are allowed to decide for themselves what products they want to use, at what price and on what terms. It’s these consumer choices that collectively drive innovation and lead to more competitive markets — to the benefit of all Canadians.  

CREA’s Pledge of Competition states: “Member Boards and Associations of The Canadian Real Estate Association support free and open competition. We believe in the principles embodied in the Competition Act of Canada.”

It’s time to ask, is CREA’s Realtor Cooperation Policy consistent with this pledge?

In January, the Canadian Real Estate Association (CREA)’s Realtor Cooperation Policy took effect. The policy mandates that realtors place publicly marketed residential property listings on MLS within the time frame their board or association states, which must be up to three days, unless an exemption applies.

“Publicly marketed” here refers to representing a listing to anyone not directly affiliated in a business capacity with the listing brokerage or office. It excludes direct, one-to-one communication with a person or agent.

Effectively, the policy ensures most existing listings end up on Realtor.ca rather than on different platforms.

The rationale: How and who the policy is meant to help

In a statement to REM, CREA says that the policy is ultimately meant to address the negative effects of limited exposure marketing tactics that can harm both sellers and buyers and which keep listings off MLS systems, such as the abuse of “Coming Soon to MLS” signage in front of homes that often didn’t end up getting listed publicly.

The association says, “We understand that some sellers don’t want their property listed publicly, and the policy does allow for this.” (There’s a disclosure and consent form for opting-out that notes sellers who choose not to publicly market their property may decline to place their listing on an MLS system if they complete the form.)

CREA says that more sellers on MLS systems means more choices for buyers, and ultimately more buyers for those sellers. “Cooperation between realtors makes MLS systems more efficient, valuable and effective for the industry and for clients. For example, competitive market analyses are more comprehensive if a majority of listings are posted to MLS systems.”

Although the change was supported by over 80 per cent of voting delegates from Canada’s boards and associations at CREA’s 2023 AGM, some in the industry find it problematic.

How things are playing out

Eric Skicki is the founder and CEO of BrokerPocket — which he describes as the largest real estate agent-only marketplace for off-market listings in the residential space in Canada. His company and those like it are deeply affected by the change.

The policy applies to all real estate agents who are CREA members (about 160,000). Skicki points out that CREA is a monopoly in itself and has almost complete control of all residential transactions in Canada. “There is no secondary player (or) secondary market with the exception of BrokerPocket.”

He says he’s spoken to numerous people in organized real estate leadership positions and learned that many aren’t interested in enforcing this rule. “They have zero incentive and zero interest. Some have even expressed that if enforced, they see this potentially as a liability to the board or brokerage,” he explains.

CREA says it continues to receive input from various sources regarding policy enforcement.

BrokerPocket believes in competition and consumer choice. It isn’t looking for a “carve out” from CREA’s policy just for itself. In a perfect world, the restrictions the policy places on competition would be removed to allow all competitors, including BrokerPocket, to compete freely, thereby giving realtors, and ultimately consumers, more product choices as well as competitive prices.

‘Sometimes, privacy triumphs (profit)’

Skicki feels there’s a misstep in CREA deciding how and where the public sells their homes. “I think they’re doing this with the intention of when someone sells their house, the only thing they’re seeking is profit.”

He explains that profit isn’t always the only driving force and that sometimes, privacy is a key consideration.

“An example of this would be a divorce case. If someone’s going through a divorce and they live in a nice neighbourhood, do they want a ‘For Sale’ sign? Do they want people Googling the house and seeing inside? Do they want open houses? (No), they probably want a discreet sale.”

A homeowner may not wish to publicly list their home for many other reasons, including physical or mental health concerns or convenience.

Lawyer involvement

To navigate competition law issues, BrokerPocket partnered with lawyer John Syme, who says he was surprised to learn about the policy and the restrictions it placed on realtors and their ability to offer clients various service options, including BrokerPocket.

For 20 years, Syme was in-house Department of Justice counsel to the Commissioner of Competition and the Competition Bureau. In that capacity, he was lead litigation counsel to the Commissioner in several precedent-setting cases, representing the Commissioner before the Competition Tribunal, as well as before the Federal Court, Federal Court of Appeal and the Supreme Court of Canada.

Since his 2019 retirement from the Department of Justice, Syme has provided competition law counsel to several private sector and government clients, along with training to a foreign national competition law enforcement authority.

He’s also co-counsel in two real estate industry class actions. “The focus of those cases are rules created and enforced by CREA and local real estate boards, like the Toronto Regional Real Estate Board (TRREB) … (the) rules place certain restrictions on brokerages and realtors,” he says.

“In the first of the two cases we filed, the defendants sought to have the case dismissed, claiming it was fatally flawed. We fought off that challenge, with the Federal Court ‘green lighting’ the case to continue. That Federal Court decision is now the subject of an ongoing appeal.”

Syme is currently providing legal counsel to BrokerPocket and has agreed to take an equity interest in the company. “I became involved for two reasons,” he explains. “When Eric reached out to me, I was impressed with his vision for BrokerPocket as a competitive tool to let realtors do their jobs more efficiently and serve their clients better. I also thought I could assist with the competition issues that, among other things, CREA’s Cooperation Policy appeared to raise.”

Background on pocket listings

Syme points out that pocket listings are not new — they’ve been part of the real estate market for many years. Traditionally, agents and brokerages communicated with one another about pocket listings through informal channels, like word of mouth and email. There was no comprehensive database or listing where realtors and brokerages could see what properties were available as pocket listings or market them to other agents and brokerages.

“This situation was disadvantageous to both residential real estate sellers and buyers and, by extension, their realtors. A seller who has chosen to offer their home by way of pocket listing might get a lower price for their property because some (perhaps many) buyers who might be interested in the property would never find out it was for sale. Buyers would be disadvantaged because they might never become aware of properties that would be of interest to them,” he notes.

Competition Bureau consultation

Syme explains the team has spoken with the Competition Bureau to disclose all facts and how there are multiple angles to consider. He points out the issue goes beyond how the policy affects companies like BrokerPocket — it also impacts competition between CREA’s members, which falls under restrictive practices, as well as the public and consumer choice.

Although the Bureau is governed by strict confidentiality rules and can’t disclose where its investigation stands, Syme indicates that he understands the investigation is ongoing and that, “The Commissioner has shown repeatedly that he will take enforcement action where necessary to address competition concerns.”

He also notes the recent settlement agreement the Commissioner entered into with the Yukon Real Estate Association to address Commissioner concerns with membership practices in the real estate sector. “We’re hoping the Commissioner/Bureau will consider taking action to address CREA’s Cooperation Policy,” he says.

Skicki emphasizes that BrokerPocket is not looking to pursue a legal case at this time. “We encourage dialogue and we’re seeking a peaceful resolution to this. We encourage (CREA) to do a member poll perhaps, to find out what the members want.”

Where do agents stand?

Skicki doesn’t believe the industry agrees with CREA having the right to dictate how people choose to sell their homes. “The agents we’ve talked to believe it’s not only legally wrong, (but) it’s also optically wrong. It sends the wrong message to the public that agents want more control, that agents want to somehow have this hidden agenda of making more money and more commissions and (are) trying to further entrap (the public).”

BrokerPocket has been speaking and having an open dialogue with realtors on the policy’s impact, including at a meeting held in February which Mark Jensen, broker owner and broker of record of The Jensen Team, helped to organize.

Jensen has been using BrokerPocket for nearly three years. He says, “(Their) offering equips us with a distinct advantage, enabling us to present our clients with homes they might not have discovered otherwise.”

There were about 15-20 realtors at the February meeting from different companies with different business models, all affected by CREA’s rule in various ways. Skicki highlights that most who attended and are speaking out about the issue are hesitant or afraid to have their name mentioned because they’re governed by CREA and their local board, both of which have the power to discipline members. 

The outcome of the meeting was to announce that BrokerPocket is “with the agents and going to be a voice for the agents.” Skicki says many people are reaching out to them. “We get a lot of inbound calls, we get a lot of questions, not only (about) how we’re conducting ourselves but what’s our opinion and (if) we think it’s fair.”

It’s about consumer choice and free competition

Jensen points out that the topic is crucial yet often misunderstood, with implications that can adversely affect consumers.

He asserts that in real estate, the concept of exclusivity holds tremendous worth. “While price is a key consideration, convenience often surpasses it in importance. It’s crucial to acknowledge that not every home is a perfect fit for traditional MLS marketing. Sellers should rightfully have a choice in determining how their properties are marketed.”

Realtors can approach each home’s promotion with a range of options for selling, including MLS and pocket listings. Jensen believes that emphasizing unique selling points only on MLS is not marketing.

“The preparation phase (painting, home renovations, staging, etc.) for optimal MLS exposure can span from weeks to months, so giving the client the option to list their house as an off-market ‘for sale’ could eliminate the inconvenience of this process and could potentially save them money. Now, these marketing avenues are being restricted.”

Jensen shares potential benefits to not implementing the policy that weren’t listed in CREA’s whitepaper, a study the association commissioned that helped lead to the creation of the policy:

• May result in reduced exposure to tire kickers and (may) ensure your home is marketed to serious buyers
• May result in reduced showings and save you time away from your home
• May result in better offers and conditions as buyers appreciate exclusivity and are willing to pay a premium. The same reason Gucci, Prada and Rolex do not sell their products in Walmart
• Sellers may prefer the option of convenience over price. Hence companies like Uber Eats, Carvana, etc.
• May result in more privacy and keep random home viewers and potential thieves from viewing your home on mass distribution websites
• Will result in not having the data of your home permanently available as far as price changes and days on market

He believes that not allowing a realtor to market their property will definitely affect the sale price. “That is the situation we’re in now. Can you imagine the car industry telling the public that they have to list their car for sale only on AutoTrader?”

Skicki highlights that BrokerPocket is pro-choice and believes it’s ultimately up to the consumer to choose how and when they sell their home, without CREA dictating where the listing goes. 

“I’m not anti-industry — I like the industry and I’m pro-organized real estate. I already expressed to a few CREA board members that I would be happy to work alongside them. I’m a former realtor and used to own a brokerage. I think agents provide an incredible amount of value.

I truly believe that once (consumers) actually look at the facts, (CREA) will reconsider, and this will either be abolished or they’ll look at having special exemptions for companies like BrokerPocket, which would in turn allow agents and the public to have more choice.”

He emphasizes it comes down to the public “not really (being) aware of what’s happening … The exclusions CREA presented I don’t think are justified or make much sense, and I think they further alienate their own members and ultimately the public.”

Further, Jensen points out the contradiction with part of the second point of CREA’s Pledge of Competition, which states: “A brokerage may offer any variety of services e.g. exclusive, open, MLS listings, etc. Boards and real estate associations accept MLS listings regardless of the price, commission rates or fees, or the division thereof.”

‘There’s a need for a B2B model — that’s what’s missing’

Skicki says CREA should be able to work together with the private sector and ultimately the public. “We’re coming at this in a spirit of collaboration and a spirit of finding the best solution for the industry and the public. We’re not trying to disrupt the industry or trying to do anything that will diminish the agent or somehow interfere with the mandate of CREA or realtor.ca. I think it’s time to recognize there’s a need for a B2B model — that’s what’s missing.” 

When REM asked CREA if it sees a need for this type of model too and if this would be a threat to the current model, its stance wasn’t clear: “Realtors cooperate and collaborate, making MLS systems more efficient, valuable and effective for the industry and for clients. It remains a business decision for brokerages or realtors to adopt or subscribe to other services.”

“There are numerous grounds that CREA’s up against, and I don’t feel that fighting this, even if they win, will gain them anything.”

 

– Eric Skicki, founder and CEO, BrokerPocket

Moving forward: The ask of CREA

Despite the challenges for BrokerPocket created by the Realtor Cooperation Policy, the company reminds its users of the policy and the agent’s requirement to comply with CREA’s rules when uploading a listing. BrokerPocket notes that it’s the only major national real estate portal in Canada that encourages CREA compliance. 

CREA says that the policy came into force in January and is still relatively new. “As we have throughout this process, we continue to work with boards and associations to help ensure they have the tools and information they need.”

Skicki acknowledges, “There’s still time to reverse course, open discussions and take appropriate measures not only to avoid legal repercussions, but also to be seen as progressive and pro-competitive. BrokerPocket remains prepared to engage constructively with CREA to find a mutually acceptable path forward.” 

Yesterday, the Realtor Cooperation policy became effective. Created by the Realtor Code’s Duty of Cooperation (Article 30), the policy’s amendment will limit how exclusive listings can be marketed. It’s intended to improve professionalism and collaboration in Canadian real estate.

The changes

For publicly marketed residential properties, the policy obliges realtors to place listings on MLS within the time frame their board or association states — up to three days, unless an exemption applies.

Public marketing in this context means representing a listing to anyone not directly affiliated in a business capacity with the listing brokerage or office. This excludes direct, individual communication with a person or agent.

Realtors are also required to inform seller clients of the benefits of marketing their listing on MLS. If the seller decides against this, it must be confirmed to their agent in writing.

This change received over 80 per cent support by voting delegates from Canada’s boards and associations at the Canadian Real Estate Association (CREA)’s AGM in April 2023.

The policy exempts new construction listings in developments with multiple property or unit developments, commercial properties and rentals.

Background and reception

An article on CREA’s website states that “efficient and effective cooperation using MLS systems maximizes opportunities for realtors to bring together home buyers and sellers, promote the value of realtors as trusted partners and strengthen the realtor and MLS brands.”

The policy amendment happened after months of consultations with boards and associations across the country. There was quite a bit of industry pushback on the original policy (proposed in fall 2022), and CREA’s board of directors approved the revised policy in March last year.

Some in the industry have been concerned about unintended consequences and limitations to consumer choice, while others, including TRREB, support the change.

Enforcement and penalties for non-compliance

Policy enforcement will be the responsibility of local real estate boards and associations. CREA’s website states “the new ‘Duty of Cooperation’ provides the authority to enforce realtor cooperation under existing Realtor Code enforcement procedures.”

It also states that the association’s bylaws and rules were amended in 2020 to “give CREA the power to directly enforce the Code against realtors” and that the real estate practice “gives CREA broad powers to levy sanctions, where appropriate.”

The sanctions listed include:

• Suspending, restricting or terminating a realtor’s license to use and display CREA’s trademarks (for example, REALTOR® or MLS®)
• Suspending, restricting or terminating a realtor’s access to CREA services including such things as CREA WEBForms®, the REALTOR.ca DDF® and REALTOR.ca
• Imposing any other restrictions that CREA determines is appropriate.