Changes to Real Estate sales in Canada

[Roy D. Cooke, Sr]

http://news.sympatico.ctv.ca/home/re..._deal/b5660c2d

Real estate board ratifies home sales deal

24/10/2010 9:24:40 PM

Canadians selling their homes may soon have the option to pick only the services they want to pay for when using a real estate agent, thanks to a deal between the industry and the Competition Bureau.

CTV.ca News Staff

On Sunday, 101 delegates from the country's local real estate boards ratified the deal during a vote in St. John's N.L.
The central plank of the deal is that the CREA will now allow agents to simply offer posting services on the national sales website, mls.ca, for a fee.
The vote comes after months of work on the part of the Canadian Real Estate Association and the federal competition regulator. The CREA represents about 100,000 realtors across the country.
"I am pleased that CREA members have voted in favour of this agreement," said commissioner Melanie Aitken on Sunday in a media release.
The Competition Bureau has been pushing for such an agreement on behalf of many consumers who want the bare-bones service.
The new deal will last for a decade, and hefty fines could be imposed on violators.
"This 10-year agreement brings a close to a long process of negotiation with the Competition Bureau and will allow CREA and realtors to do what they do best -- help people with the biggest financial decision of their lives, buying and selling a home in these challenging economic times," said CREA president Georges Pahud.
Still, it could take some time before homeowners begin to see real savings, as the real estate industry has entrenched practices which won't change overnight.
Currently, selling agents and realtors split the common sales commission of five per cent, and many agents may stick to their current business model, said real estate expert Mike Shanks.
The CREA agreed to make changes to its practices last March, but the organization wanted a clause which would have allowed local boards to veto the decision.
Shanks, from the by-owner home sales website PropertyGuys.com, said the ruling is good news for consumers.
He said that sellers who want to have their homes listed on the mls.ca national sales database will be able to pay an agent a few hundred dollars to do so.
Shanks said the usual commission for an average Canadian home is now $15,000.
"This is great news for us," he said.

[George A. H. Luck]

I still don't understand how the government can dictate that the public has to have access to a private web site / service. It would be like having them tell you, Roy, that other inspectors must be able to access your business web site to advertise their services.

But I guess that up here in the gulag anything is possible.

[Roy D. Cooke, Sr]

Originally Posted by gluck

I still don't understand how the government can dictate that the public has to have access to a private web site / service. It would be like having them tell you, Roy, that other inspectors must be able to access your business web site to advertise their services.

But I guess that up here in the gulag anything is possible.

George I do a lot of reading and have searched and you are the only one I have found who feels that way .
("I am pleased that CREA members have voted in favour of this agreement,") said commissioner Melanie Aitken on Sunday in a media release .
Many think it is a good think and can cause many to sell .
People who have a home of $300'000;00 that want to move and stay in the same price range see commisions of $30,000;00 and other expenses of $30,000;00 on the sale and purchase .
Of course the home Inspector gets his share of this about $350;00 *2 = $700;00.
Be interesting to see what does come about .
I fel it might be great ... Roy

[Marc-Andre Beauchemin]

Slow down Guys, it is not as simple as it sounds! We must not cast the first stone, or bite the hand that feeds us!

As it is the case everywhere, (FSBO),for sale by owners have always been allowed, but 30,000 commission on a 300,000 house is 10%.(Commissions are not as high as 10% and these services are also taxable).

As opposed to the home inspector, the Broker is only paid if there is a sale! No sale, no commission but expenses still have to be paid.

Believe me, I should know since I am both a Broker member of the Quebec OACIQ and a NACHI certified home inspector working out of Quebec Brossard Canada. (There is no conflict of interest).

I also have a trade Diploma in Plumbing and Heating, and that is ok. (I am also a member of PHPIO that later became PHPIC).

A ten year deal has been ratified but the market is on its *** at the moment and everyone is in the panic mode.

The ten year deal is still cloudy for many.

Owners should have access to MLS.

But a banner can refuse to offer partial services like MLS services, second if services are offered for a price, the funds have to be deposited in a trust account until the property is sold and notarized.
Now,According to jurisprudence, if the property has not been sold, the funds have to be reimbursed to the seller.
Imagine if the inspection fees could only be paid to the inspector after the deal is notarized.

In an attempt to calm brokers, The Greater Montreal Real Estate Board president is calling for information sessions with OACIQ members.

It is not clear yet, what will happen!