Today, the Canadian Real Estate Association (CREA) held a special general meeting (SGM) in Ottawa where members voted in favour of transitioning Realtor.ca into a wholly-owned taxable subsidiary of CREA.

The platform has been operating on a not-for-profit basis to this point.

“This decision represents a forward-thinking approach that reflects the evolving needs of both Realtors and consumers. By transitioning Realtor.ca into a wholly owned subsidiary, 100 per cent owned by CREA, we’re unlocking new opportunities for innovation and growth while ensuring Realtors remain at the heart of the platform,” says Janice Myers, CREA CEO.

The case for the structure change

For the past 18 months, CREA has been engaging the Realtor association community to discuss what the future of Realtor.ca looks like and the potential to make this change, as it deems it a “financial necessity and strategic move to secure Realtors at the centre of Canadian home buying, selling and renting journeys.”

CREA points out that Realtor.ca has largely created how real estate is marketed and consumed in Canada but says the status quo isn’t sustainable because competition in tech grows each year, consumers expect more and operational costs increase.

Specifically, the organization notes that Realtor.ca can’t pursue new revenue streams or engage in some business-related activities. A for-profit model would offer the ability to change this and better position CREA to succeed in a competitive market.

PricewaterhouseCoopers (PwC) conducted an analysis and presented opportunities the transition could offer in a draft business case.

It found that as a taxable entity, Realtor.ca could generate significant estimated revenues to help reduce dependence on CREA funding from member dues. Specifically, over a 10-year period, member dues funding Realtor.ca would drop from 43 per cent to 25 per cent, allowing CREA to focus on advocacy and professionalism.

Dues wouldn’t necessarily decrease, but these funds could go toward priorities other than Realtor.ca.

Proposed focus

In a previous interview with REM, Myers emphasized 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 highlighted three main points solidified by a special task force and endorsed at an SGM:

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.

“Today’s vote is about securing the future of Realtor.ca. Every day, Realtors proudly serve clients in every corner of the country. This decision will help ensure Realtor.ca continues to meet the needs and expectations of today’s property owners, buyers, sellers and renters,” says James Mabey, CREA chair.

“We’re excited about the future of Realtor.ca and grateful for the trust and support of our members as we take this important step,” Myers adds.

Photo: CREA