As real estate lawsuits shake up industry, B.C. impact remains uncertain

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A proposed class-action lawsuit alleges price-fixing by the CREA and other real estate groups.

Two North American court cases are taking the real estate industry to task over commissions paid out to Realtors.

“Somebody who buyers are trusting should be looking out for the buyer’s best interest, not shopping offered commissions. So anything that can be done to avoid that, I think is helpful.” “This is about fair play between participants in the real estate industry and in the public, and these rules are just not fair,” said lawyer Garth Myers, a partner at Toronto-based Kalloghlian Myers LLP, who filed the proposed class-action lawsuit in Canada.Myers said that changes to the standard commission in the NAR case “eviscerates any defence that the Canadian defendants will have in relation to the necessity of these rules.

“I think it will make it less costly to buy and sell real estate generally. Will that have a downstream effect on the buyer? I don't know. But we're seeking to represent sellers and that’s who we’re acting on behalf ,” he said. “Buyers may have to start compensating Realtors out of their own pocket. I don't see this as a win for first-time buyers. … This is not a silver bullet or magic carpet ride to affordability.”

“The real estate industry at various times in various forms, both here and in the U.S., has faced various legal actions on that. And usually the end of these agreements not to do that, but the world doesn't seem to change much. Every once in a while somebody comes along with a new law, a new lawsuit, a new government action,” said Ron Usher, general counsel for the Society of Notaries Public of B.C.The Competition Bureau said it is aware of the proposed class-action lawsuit.

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