“Fee-For-Service” Real Estate
The Canadian Real Estate Association’s (CREA) Board of Directors approved a settlement with the Competition Bureau on September 30, 2010, subject to member Boards/Associations approval at a special general meeting, being held in St. John’s, Newfoundland, on October 24.
CREA says the proposed agreement specifies that Boards and Associations cannot prevent or discriminate against mere posting business models. Moreover, it does not require brokerages to change their business models.
Competition Commissioner Melanie Aitken, said, “If ratified, the agreement will ensure that consumers have the ability to choose which services they want from a real estate agent when selling their home, and to pay for only those services.”
CREA has always maintained its rules allow for the provision of just a paperwork function of the listing service without agency representation, and here in B.C. such alternative sales models already exist.
The consumer choosing to navigate their own way through the process of a real estate transaction without professional help is going to have to have a clear understanding of the risks involved, and the pitfalls of not performing full disclosure or due diligence; it could become very costly.
It may well be that this proposed agreement will help more consumers realize and appreciate the protective roles of licensed REALTORS® in BC, because remember, professional services come with the backing of a mandatory Errors and Omission insurance. See, “The Risk of Going Cheap”
BTW, the proposed agreement does not grant public access to the privately owned MLS® System; it remains strictly a member-to-member service.
While the CREA leadership will only discuss specifics in individual meetings with Boards and Associations, they will continue to correct, factually inaccurate reporting in the media. Stay tuned.
To find out how this might effect you in your real estate dealings in the Tri-cities of Coquitlam, Port Coquitlam, Port Moody and surrounding areas in Metro Vancouver BC, give me a call at 778-878-0778, or email.