A landmark lawsuit settlement in the U.S. is playing out at the same time as a proposed national class action lawsuit makes its way through Canadian courts, with the lawyer behind the claim saying a win would reduce the cost of Canadian homes.The U.S. National Association of Realtors has agreed to pay $418 million US to end legal claims from home sellers that argued the group artificially inflated real estate commissions. A substantial settlement recently announced by a U.S.
A University of British Columbia real estate professor says the settlement bolsters the argument for similar changes to happen in Canada, which could make it cheaper for people to buy and sell homes.A landmark settlement in the U.S. is garnering the attention of B.C. real estate experts. A U.S. group representing more than one million Realtors agreed to pay more than $400 million US to end legal claims that it artificially inflated real estate commissions.
Lawsuits argued home sellers were compelled to enter into commission-sharing arrangements in order to market their homes on multiple listing services and not lose out on potential buyers. In B.C., it's seven per cent on the first $100,000 and three per cent on the balance in a real estate transaction, according to real estate agents who spoke to CBC News.The Canadian Real Estate Association is a defendant along with dozens of local brokerages in a proposed class-action lawsuit, filed in January of this year, which alleges "a conspiracy, agreement or arrangement" between brokerages leading to illegal increases in the price of residential real estate commissions.
"We think that the consequence of our lawsuit will mean more money in the pocket of home sellers and it'll reduce the cost of residential real estate across the country."