QUICK HITS
- Boards and associations will vote on a proposed amendment to the Realtor Code at CREA’s AGM in Ottawa on Tuesday, which would make it mandatory for realtors to place their listings on MLS within three days of publicly marketing a residential property.
- The policy explains public marketing as the representation or marketing of a listing to the public or anyone not directly affiliated with the listing brokerage/office in a business capacity but does not include one-to-one direct communication with an agent unaffiliated with the listing brokerage/office.
- While some in the industry are concerned about unintended consequences and limitations to consumer choice, others, including TRREB, support the amendment.
Canada’s real estate industry is gearing up for CREA’s annual general meeting (AGM) in Ottawa, where proposed changes to the Realtor Code will be voted on Tuesday.
If passed, the amendment, known as the Realtor Cooperation Policy, would make it an ethical obligation for realtors to place their listings on MLS within three days of publically marketing a residential property.
The amendment defines public marketing as any representation or marketing of a listing to the public or anyone not directly affiliated with the listing brokerage/office in a business capacity.
“I think there are a lot of misunderstandings of the policy and what it means,” says Paul Baron, president of the Toronto Regional Real Estate Board (TRREB).
Baron expressed TRREB’s support for the amendment and was emphatic that this is not a ban on exclusive listings, “It just prevents them from publicly marketing a property if they’ve got it listed exclusively.”
“The idea of realtor cooperation is not banning exclusive listings. It is changing the rules so that when you market something publicly that then you’re going to get involved in the cooperative and that you’re going to put the property on MLS.”
– Paul Baron, TRREB president
He explains, “When an agent goes in to do a listing presentation, the consumer can absolutely choose to list it exclusively or choose to list it on MLS. They don’t have to opt-out. They have that choice. The choice is not taken away.”
Under the proposed changes, if a seller decides to forego placing their listing on MLS, they must provide written confirmation of this decision to the listing agent, including a specific instruction not to engage in public marketing of their property.
Commercial property listings, new construction listings in developments with multiple properties or units and rental property listings are exempt from the policy.
“The idea of realtor cooperation is not banning exclusive listings. It is changing the rules so that when you market something publicly that then you’re going to get involved in the cooperative and that you’re going to put the property on MLS.”
The proposed amendment emphasizes that using limited exposure marketing tactics diminishes the value and benefits that MLS provides to realtors and consumers.
“It is our position that the proposed Realtor Cooperation Policy is an overreach of CREA’s authority. The core elements of the transaction need to be left to boards and regulators.”
– Statement from the Calgary Real Estate Board
In a statement to Real Estate Magzine, the Calgary Real Estate Board (CREB) says it does not support the proposed amendments, calling it an “overreach” of CREA’s authority, adding core elements of the transaction should be left to boards and regulators.
CREB’s statement goes on to say, “Although the intent of Realtor Cooperation is valid at its core, including the work to ensure an effective cooperating selling system, we have concerns about the potential for unintended results of the proposed policy change and the potential for it to limit consumer choice. These are important changes for our industry that require further consideration.”
Alan Tennant, president and CEO of CREB, was part of the original CREA working group that recommended a previous version of this policy in 2022.
REM’s request for an interview was declined by a CREA spokesperson, who shared that the association will comment following Tuesday’s vote.
Background
In 2021, CREA began a review after some industry stakeholders expressed concerns about the increase in “coming soon” marketing tactics, where a property is marketed narrowly to a select group without being made available to others.
CREA previously told REM those concerns led to the establishment of a working group, which recommended a cooperation policy to the CREA board in Aug. 2022.
After significant pushback from many in the industry in Oct. 2022, the board agreed to bring the policy to a vote at the 2023 AGM. CREA’s board approved the revised version in March.
Enforcement
If passed, the proposed amendment will come into force on Jan. 3, 2024, and enforcement will fall to local boards and associations. Baron says TRREB will create rules and guidelines within its professional standards department to monitor and enforce the new policies.
The TRREB president also confirms the board will vote in favour of the amendment and is confident it will pass on Tuesday.
He adds, “I think that it will take some time for everybody to understand the policies and how it affects their business and how they go about things.”
Jordana is the editor of Real Estate Magazine. You can reach her by email.
How disappointing that TRREB will back this, despite the overwhelming critique when initially reported on REM.
Obviously if the property is not allowed to be marketed publicly it is all but certain doomed to failure. The decision to back this fails to recognize that not all sellers want their property’s listing broadcast widely. The purpose is to force sellers onto the MLS – there is no justifiable reason otherwise for this unfortunate myopic, industry selfish move.
That law suit in the USA against forcing sellers to offer a co-operating commission is poised to win which would just give the class action suit for the same purpose launched here in Canada actual teeth.
I expect this will be a regrettable and expensive action.
I completely agree with your comments, TRREB is not listening to their members – this is very disappointing. If they want to address the problems with “coming soon”, I’m with them, let’s fix this problem, but not prohibit us from advertising exclusives.
I agree, limiting the length of time a “Coming Soon” listing can be publicly marketed would be a much more practical solution. Forcing people on to the MLS so their properties can be publicly marketed is a poor decision to say the least.
I just want to know why the President is voting wihout the consent of the Members. Why did he choose to go this way with any input from the Members. Is OREA’s agenda kosher. This move is suspect as it does not for the Sellers. or protect the public – so why.
I just want to know why the President is voting without the consent of the Members. Why did he choose to go this way without any input from the Members. Is OREA’s agenda kosher. This move is suspect as it does nothing for the Sellers.nor protect the public in any way. Wihtout Advertising what good is having an Exclusive Listing. No Seller will accept restrictions on how his property is to be marketed whether on MLS or as an Exclusive Listing.
What’s really going on here? What’s the real purpose of this move?
unintended consequences of trying to “stop Coming Soon”
wow, over reach I would agree with the CREB board on this, yes you can still have them, but can’t advertise them to the public? this would mean an exclusive sign rider on the sale sign for sure and then if that’s not allowed as that would be advertising to the public, then what’s the point, just ban them. Terrible thought of CREA. The boards need to decide this not them. I see its all about Data for TRREB and these being sold are not available to them.
Should this decision be approved, it will ultimately lead to an action by the Competition Bureau. It effectively limits competition for marketing a listing and ultimately limits consumer choice. That TTREB would even consider this just shows how out of touch they are with the consumer and how self-serving their attitude is. The executive should immediately be replaced for being incompetent and for putting the livelyhood of their realtors at risk. I will say it right now “I told you so”.
Coming soon on signs limits competition. It takes time for sign companies to install the sign… then coming soon added. It is an outright attempt to double end a property before it gets on the system where all buyers get to know it is for sale versus the few agents from the listing office or whoever drives by the sign. I totally agree the the 3 day policy. Coming soon does not work in the owners favor.
So throw out the baby with the bath water and punish every Realtor for the unethical.
Let’s face it, ORE has zero intention of stopping double-ending for if they did, OREA and all the powers that be in all the boards would not have lobbied for that to stay in changes to TRESA and the other provincial acts.
You can test that simply by recognizing that if double-ending was outlawed, the coming soon sign would suddenly become as extinct as the dodo bird.
This does nothing to avoid double-ending within the 3 day period or for the unethical Realtor to either take the listing for just 3 days at a time or cancel and relist for another 3 days or even ignore it – after all, TRREB doesn’t even police the blatant violations on the posted listings, who is going to roam neighbourhoods or troll thousands of website for such violations?
The boards and CREA each have the abiity to stop the coming soon signs. It is easier for CREA to institute a non-adveristment of Coming Soon to the MLS system without having a valid enforecable MLS listing and just as easy for TRREB and other boards to amend their MLS rules to require that no coming soon sign may be placed on an MLS listing.
The coming soon is nothing but a strawman excuse. The purpose behind this is to force sellers to list on the MLS – period!
You certainly have the option not to use the “coming soon ” approach. This is not a one size fits all for every real estate market. The ” coming soon ” sign lets the neighbourhood know the house will be for sale on mls and the social media and marketing outreach lets thousands of others know the house will be available. It is not for us to decide for a Seller how and where there house will be presented. This is a huge overreach. The coming soon rider is installed when the sign goes up. There’s no delay. FYI all my Sellers are requesting the ” coming soon sign”.
Sorry but that coming soon lets the neighbourhood know it will be for sale is how agents who use that excuse either sell their hope to double-end to the public or lie to themselves.
There is not one buyer out there who will see a coming soon sign and say:
‘oh look Mildred, that house that we’ve never seen the inside of, or know what it looks like, or what shape its in, or its size, number of bedrooms, baths, whether its owner occupied or tenanted, OR its price, is coming soon to the MLS and so no Mildred, we wouldbe really, really stupid to offer on the other one or two that we’ve seen and know suits our needs, because you know, we will be missing out.’
Considering that a for sale sign contributes to less than 5% of all buyers, it’s not at all likely that a coming soon that is a mystery actually causes people to wait. The facts are that they are intended for the buyer to call the listing agents so that it will be double-ended.
To give those who wants the coming soon right based on that ploy, CREA can do as I suggested previously, even disallow any marketing of the interior and showings.
But that seems just too easy and sensible a solution since the premise.
FTR – I do not engage in the coming soon charade, or under-listing and except for my first year when doing it once was all it took to let me know the it is unfair to the client to remove fiduicary because neither the money nor the high will beat my ethical compass.
it will eventually go away – Either it will be forced or a future CREA board will do the right thing. Sadly, all the money and time wasted on trying to limit your marketing options will not be coming back, which is a real shame. Imagine if this effort was used to do something to help REALTORS and their businesses?
Another classic example of CREA reacting to markets in Ontario & BC. The rest of Canada doesn’t matter to them.
Many sellers have “reasons” for not wanting their properties on MLS, making this “LAW” is a bad idea! One that is doomed to fail, miserably!
I could be wrong, but I think if this proposal is passed, CREA had better be ready for another fight with the Competition Police. As soon as you limit what a member of the public can do with the listing of their property, (i.e. force them to have the listing on MLS, you are just asking for trouble.
Anytime you restrict consumer choice you risk a backlash that harms your overall credibility and just begs for more government intrusion into the market place. To even consider a ban of the right to offer an exclusive marketing relationship with a seller makes me question who is running this organization.
I agree with Bob Kalo that it would effectively limit competition for marketing a listing and ultimately limits consumer choice.
This is absolutely unconstitutional! This removes the rights of an individual seller to promote their property as they see fit for their needs. I agree wholeheartedly with all previous comments TRREB has not taken into consideration the views of its members. TRREB should have had a member referendum on this topic.
Blatant restriction of trade practice and anti-competive. Extremely surprised to see TRREB backing this interference into how Brokerages and the Consumers carry out their business obligations. The s**t will hit the fan! CREA never learns !
Over the years I have had the occasional seller want to restrict access to their property to certain individuals for their own personal but valid reasons. If listed on MLS we cannot refuse showings by other listing representatives. Thus they choose to go Exclusive and not MLS. This new ruling will not let me put the property on my web site nor print ad? This is so wrong!
If you are putting an ad in the paper, putting it online, and possibly a sign, what do you say when then the “certain individual” sees or hears about it anyway? Would you not be in the same situation again? I think this is what they are saying if you want to go exclusive you can but once you start advertising it publicly it should be co-operating with all and on mls.
I think TRREB members should vote if CEO of TREBB, John DiMichele, should step down. Enough is enough and clearly they do NOT listen to their members!
If any CREA members reading this, they should know that there are at least two law firms waiting for you this play this decision into their hands… TRREB has experience already with anticompetitive practices and the hammer will come down hard on them.
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CREA will sued, TRREB might get dragged into and ultimately the membership have to bare the price… still not too late to listen to your members and stop this madness!
This rule will push all sellers & realtors to promote their listings thru other websites and not list on MLS at all. Realtor.ca and other MLS systems will loose business to various online portals. TRREB, Orea Crea all taking huge amounts from realtors but not really helping us.
It doesn’t make sense to go exclusive then advertise it everywhere if the excuse is that your client doesn’t want everyone to know its for sale. Why wouldn’t it go on MLS then? We are supposed to co-operate with each other. It’s embarrassing when we are obligated to show our buyers everything that fits their requirements yet we hear from them “what about 123 any street” and its not on our MLS or in some cases it is but not interboarded so we don’t even know about it. The only legit issue I see is more on the enforcement side, as local boards/associations will be responsible for that.
Quite right Mike. If your client does not want everyone to know they are selling, then there should be no ‘exclusive’ for sale signs. Once a sign goes up it is by definition public knowledge and there should therefore be cooperation. Same thing with advertising an exclusive. Exclusive means exclusive. You have a specific buyer for a property and the seller agrees to let it be shown. An exclusive listing for the period of showing the property then negotiating an agreement of purchase a sale (should one arise) makes sense. Things get pretty muddy if the exclusive is for five months or more, however the seller should have that choice. Pocket listings invariably favour the agent not the seller/client. Sellers should also be told that an MLS listing supersedes an exclusive listing. Never been a fan of ‘Coming Soon’ signs. For agents it equates to a ‘Just Listed’ sign but you have no access to any information. If the home is not ready for the market then wait until it is, then list it on MLS. The only reasons for ‘Coming Soon’ are to gin up interest and promote double enders.
Tell me this is a bad joke!
TRREB is limiting consumer choice by forcing realtors and sellers to place their listings onto MLS and they have not consulted their members about this decision.
TRREB‘s for profit technology arm also violates the rights of realtors to choose their own technology products and to create their own technology. TRREB vetoes technology that they don’t create or profit from. These are completely anti-competitive actions by TRREB!
At least two of your fellow realtors are being taken to a TRREB professional standards tribunal for launching exclusive listing sites for realtor-to-realtor exclusive listing cooperation. One realtor was fined and forced to give up their licence because they created create a tool for realtors and consumers to market their properties off of mls. The other will have the same fate.
TRREB is falsely and intentionally claiming that realtors are violating MLS rules and putting them through a regulatory process that is a complete sham… and this is all because they want to control every single listing on the mls platform and profit from it.
TRREB is violating the rights of consumers by not allowing them to advertise their own properties the way that they choose to and by persecuting the realtors that they falsely claim to serve.
A tell tale sign that something is wrong is when CREA won’t call it was it is. This is a ban on exclusives, yet they won’t acknowledge that basic fact. If they called it an exclusive ban, which it is, it would be harder to pass.
It is overreach by CREA and agains the best interests of agents and the public. It is a shame this was ever seriously considered, let alone brought to an AGM. CREA has identified a problem (some agents aren’t using MLS) and instead of doing the right thing (improve MLS so it is something virtually every seller and agent will insist on) , they’ve gone the easy (for them) and anti competitive route.
I hope a future CREA board does the right thing and reverses this ban and focuses on helping realtors.
“Coming Soon” and “Exclusive Listing” are two different animals. eliminating one to solve the problem with another is not an answer. By all means, create a set of rules for ‘Coming Soon”, but eliminating “Exclusive Listings” is eliminating Seller Choice, and I thought that is what is important.
I also believe that there is a push to get as many listings on MLS as possible, so that the value of housing data is improved through volume. More and more agencies are using the data for planning and predictions, and there is a concerted effort to increase and improve that data through methods like this vote.
This doesn’t make sense. Sometimes our clients request that deals are kept exclusive for many various reasons. Hense why we have an exclusive option on listing documents in the first place.
I consider myself an ethical agent and have used coming soon signs to get the buzz going on a listing. I would normally put it up a week before the listing would go to MLS. I have never sold a home through a coming soon sign. Yes I have been called by buyers and Realtors alike about the sign but I have always told them they have to wait until it goes live on MLS to view or purchase the home. I have always thought of the coming soon sign as another marketing tool to get multiple offers on a listing. It is too bad some are using it for selfish reasons.
In my opinion, we should develop rules for Coming Soon and Exclusive listings. These are two different strategies and choices… Coming Soon implies the listing is coming to the mls. Exclusive can remain exclusive entirely and sell exclusively. Realtors and consumers should have these options available to them for many obvious valid reasons that I won’t state here. We just need clear rules… for example: coming soon should not be more than 2 weeks.
Helpful when you change the organizational structure of realtor.ca, better to control the whole market.