The Canadian Real Estate Association (CREA) has been closely monitoring what’s been happening since the National Association of REALTORS® (NAR) announced their agreement to settle their class action litigation. As we mentioned in our statement, the Sunderland/McFall claims and the claims in the U.S. against NAR exist in different legal contexts.
While the ongoing Canadian class action claims in Sunderland and McFall are based on a similar allegation, that requiring listing agents to offer compensation to buyer agents distorts competition and results in higher fees, neither case has been certified as a class action (a precondition to the claim proceeding on the merits) and whether the Sunderland action discloses a viable legal claim is a disputed issue that is currently before the Federal Court of Appeal.
We continue to disagree with the claims made in Sunderland and McFall for a number of reasons, including that the offer of compensation can be anything but zero, and the amount of and other terms relating to compensation has always been subject to negotiation.
REALTORS® are real estate professionals whose valuable expertise guides buyers and sellers through the home buying process. CREA will continue to support and defend the interests of our REALTOR® members and the value they represent to Canadian consumers.
Janice Myers, CREA CEO, recently shared how REALTORS® open doors for Canada’s real estate consumers. Read her thoughts in Real Estate Magazine.
