Author of the article:
Published Jan 26, 2024 • 2 minute read
TORONTO — A class action alleging price fixing commissions within the residential real estate industry has expanded to cover all of Canada. The Statement of Claim was filed in the Federal Court on January 19, 2023. The lawsuit says that real estate brokerages across Canada have agreed to a series of illegal rules leading to illegal increases in the price of residential real estate commissions. It also alleges that the Canadian Real Estate Association and local real estate boards across Canada are responsible for this misconduct.
Advertisement 2
This advertisement has not loaded yet, but your article continues below.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
Exclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.Daily content from Financial Times, the world’s leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
Exclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.Daily content from Financial Times, the world’s leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.
Article content
A prior lawsuit was filed on behalf of residential real estate sellers in Toronto. This new lawsuit covers all real estate regions in Canada, other than Toronto. It follows on the heals of a decision by the Federal Court finding that it was “at least arguable” that the rules agreed to by the Toronto real estate brokerages were illegal and contrary to the Competition Act.
Article content
The case centers around a rule that requires home sellers who list their house on a Multiple Listing Service, or MLS, to make an offer of commission to the buyer’s real estate brokerage. In so doing, the rule makes the seller responsible to pay for the buyer brokerage services used by the buyer. The lawsuit alleges that this rule prevents competition in the buyer brokerage industry leading to higher commissions than what would otherwise exist in a competitive market.
“The rules should protect the homeowners, not the entrenched real estate industry,” said Kevin McFall, the plaintiff in the class action.
“This practice needs to end,” said Garth Myers of Kalloghlian Myers LLP, one of the lawyers who brought the lawsuit. “The cost of housing is a major problem in Canada. The unfortunate reality is that the real estate industry is contributing to this problem.”
“Technological advances should have caused the price for buyer brokerage services to drop. Instead, the cost of buyer brokerage services has skyrocketed,” said Paul Bates of Bates Barristers P.C., another lawyer working on the case.
“When you make the seller responsible for paying for services used by buyers, there is no longer any incentive for buyers to consider not using a buyer brokerage at all, or to seek a reduced price. In this way, the rule eliminate the downward pressure on the price for buyer brokerage services,” explained John Syme of John Syme Law, another lawyer working on the case.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240126662900/en/
Contacts
Garth Myers
[email protected]
(647) 969-4472
Article content
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Financial Post – https://financialpost.com/pmn/business-wire-news-releases-pmn/real-estate-commission-price-fixing-class-action-expanded-to-cover-all-of-canada
