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.
Emma Caplan-Fisher is an editor and writer for REM. She has over a decade of experience in various content types and topics, including real estate, housing, business, tech, and home & design. Emma’s work has also been featured in Cottage Life, the Vancouver Real Estate Podcast, the Chicago Tribune, Narcity Media, Healthline, and others. She holds a Certificate in Editing from Simon Fraser University.
I smell an anti competition lawsuit coming. The policy demands I restrict the services and options I am able to provide and coerces compliance by using a dominant market position. There is no practical way to practise as a registrant and not have MLS access.
I think this rule is outrageous! I just can’t understand how it was passed at the CREA meeting in 2023. Beyond my comprehension and I always thought I had a pretty good understanding of the Rules. This kind of rule makes me lose respect for the rules as a whole.
This is the worst over reach by CREA ever! That a consumer can not choose on how they want to market their home. To say that putting a home on MLS is the only or even best way to market a home is narrow sited. Instead of dealing with a small number of Realtors who are not putting their clients best interests first they are punishing the consumer. It’s like putting speed bumps every hundred meters in the 401 to stop speeders. Hopefully this is challenged in the courts.
I couldn’t agree with Mark more. Also, the fact CREA and the delegates made this decision and immediately also put forth the idea to convert realtor.ca a for profit model is so self serving and underhanded that I believe it should be challenged. Forcing a consumer who hires a brokerage to follow rules that restricts their options of how to work while collecting money off of that rule is absolutely absurd.
I don’t have a problem with putting some kind of a timeline on coming soon listings. We have all seen the perpetual “coming soon” which seemingly takes years to hit the market, however, I think 3 days is too short- 10 days allows for effective marketing to create some hype and anticipation in the marketplace, and serves our clients well. I think that exclusive/ non-MLS listings also have a valid place in specific circumstances.
Well put. This doesn’t have to be a binary solution. The best practice involves experts providing informative services to their clients.
“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.”
Does this mean that a seller can opt out and have their agent offer their property for sale exclusively? I wonder how the competition bureau will see all of this in light of the current legal environment?
Sue yes they can opt out but we are not permitted to market the home in anyway publicly. Also no where it the document does it show all the benefits of marketing a home exclusively and still offering cooperation with other brokerages. MLS is not the only game in town and this is a direct violation for the Competition Bureau to investigate. The NRA in the US has messed things up as well and have sold off Realtor.com to a publicly traded company. Agents and brokerages are leaving the NRA in droves. Similar will happen here and agents will leave CREA.
Thanks Mark. It feel uncompetitive. Restricts the choice of the consumer. Interesting times
I can remember with great fondness seeing a sign with “COMING SOON” that sat there for WEEKS, AND WEEKS, AND WEEKS, AND WEEKS, with NO movement. I also remember with fondness, THE DAYS AND DAYS AND DAYS of not receiving a return phone call from the “soon to list” Realtor. I’d like someone to try and explain to me how this benefited the Seller in any manner or form??? I know why they did this, I’m just curious as to how someone can try and justify it. The MLS is the greatest tool that any Realtor has at his disposal for the marketing of real estate in Canada. I must be fairly thick but I’m at a loss as to exactly what better methods you could employ to reach the consumer. Are you going to run an ad in the local news paper (now non-existent) OR maybe thumb tack your business card on the cork board at the local Super Market?? Please spare me your indignation at the “overreach” of our governing body to stop this self serving nonsense. Vest Pocket listings should be a thing of the past, but they seem to be hanging on with a vengeance. Get off your soap box and start doing your job.
Graham, I would suggest your example is an exception and not the norm.
After (20)+ years of Real Estate experience, in all honesty, I’d have to say that this was the norm not the exception. I really have no idea what world your living in, and we are talking money here.
Well said, Graham.
I wish I could wipe the “know it all” off my eyeballs from this one. Let’s take one example they have outlawed. A client wishes to maintain some anonymity. I had access to a large Facebook group of Realtors I could list exclusively and still get the word out pretty effectively. No photos living in our MLS forever, no Google infinite memory and simple search. Divorces, Estates… both might value some more controlled exposure. Not every scenario is designed for MLS. Target offenders of “coming soon”, not my ability to service clients as needed.
Doing my job means serving my clients the way they want.
Not what the governing bodies say my client wants!
I have no idea how 80% of CREA ever thought this was a good idea! How stupid do you have to be! By limiting consumer choice you are asking for a lawsuit. It may even come from a person within our industry. There was nothing wrong with the way things were. The consumer had a choice and choice is good. If a consumer does not want the benefits of MLS, it is their choice. Trying to railroad them to choose MLS and forcing realtors to be the enforcers is NOT a good look for our industry. Lets find out who voted for this.
Good comment!
Give your client the freedom to chose the service he/she wants!
If a client wants an Exclusive listing only then it should be allowed.
Maybe it upsets some realtors who can’t get listings!
They are depending on MLS too much!
I am not a real estate agent, but it appears that the Canadian Real Estate Association (CREA) may be leveraging various justifications to consolidate all listings on Realtor.ca. Furthermore, I have come across information suggesting that there is a proposal to potentially privatize Realtor.ca by selling it to a private entity. From my perspective, this would not be an advisable course of action.
Is anyone else doing MLS style listings in Canada?
Yes Broker Pocket is a website for agents to list off market homes. This site has been very successful for selling my clients homes. This is a huge impact to them and I as sure they will fill an anti competitive law suit against them.
This rule fails to recognize that MLS is not the only viable option for marketing a property. Maybe during COVID this was a foolproof strategy, but anyone who has been in real estate for more than 3 years should know that MLS in merely one of several tools available to get a property sold.
Here are some examples where an MLS listing can be detrimental: Divorce listing, Estate Listing, Luxury Listing (think celebrities’, politicians’, noteworthy individuals’ homes), or someone with a career that needs to remain anonymous like a police officer, investigator, intelligence operator, etc.
Even if you believe that MLS is the only viable option for marketing a property, this policy still removes choice for the consumer, and coerces agents and consumers to use only one platform to sell their properties hindering competition and stifling consumer rights.
I am a Real Estate Broker and I feel CREA is becoming a Dictatorship. Consumers should be free to choose how they want to sell their property.
It’s the perfcect answer to all with the inability to marrket and sell real estate without the MLS.
This reminds of of the overdone response by Realtors when fsbo companies entered the market – ‘they can’t list your house on MLS’
All the proponents of this shortsighted scheme is proving is that, the only ability needed to sell property is a nationwide sharing system and the ability to post a listing with pictures.
If House Sigma and a couple others haven’t been planning their own listing service since March of 2023, I’d be shocked.
It is not the answer for companies like ours that are marketing experts. This is benefiting the lazy agent who just put a home on MLS and then hopes it sells. Zero benefit to the consumer.
With Self-Representation now a legally required disclosure as a Buyers Option in Ontario it appears this move is created to limit the ability of Buyers to save the Co-op commission by using a lawyer.
CREA was smart to circumvent RECO with this policy as the savings from an exclusive listing has now been stopped.
I guess my only concern is the Competition Bureau discovering this commission protection policy has been enacted mere days after TRESA. I also am wary of suggesting to the public the benefits of MLS without citing all the negatives too.
Maybe CREA will provide Guide to Realtor.ca Success for Sellers as they continue to take realtor.ca into a separate and for profit company. Maybe this will delay Google or Apple from launching their own home selling apps.