Price fixing has sent Realtor commissions soaring in an already hot market, lawsuit alleges | CBC News

Much of the discussion about Canada's real estate market has been dominated by the meteoric rise in the cost of housing.

Commission structures vary across the country, but typically real estate agents and their brokerage charge a percentage-based commission on the sale price of a home. In Alberta and B.C., it's seven per cent on the first $100,000 and three per cent on the balance. In other parts of the country, commissions range between four and five percent.While the seller pays the full commission, it's split between the brokerage representing them and the one representing the buyer.

"It's not a typical smoking gun conspiracy, it's out in the open," said Garth Myers, a partner in Kalloghlian Myers LLP, the law firm that filed the case on behalf of Sunderland and anyone who has sold a home in the GTA since 2010. The practice of steering is further enabled by Realtor.ca, which allows real estate agents and brokers to see the amount of commission on offer but hides the information from public view.Sutherland's lawsuit is similar to a class-action case underway in the U.S against the National Association of Realtors and America's largest real estate brokerages.

"In terms of commissions, the industry is striving to maintain a pricing cartel," said Brobeck, noting it's something that's happening in the U.S. and in Canada. In March 2022, the Canadian Real Estate Association and the Toronto Regional Real Estate Board brought a motion to dismiss the entire action as having "no reasonable cause of action." That motion will be heard in the fall."Our business is very competitive," said Rui Alves, chairman and CEO of iPro Realty in a statement to CBC News. "It's the market that sets the rate, not MLS rules or collusion between brokerages.

Gangsters

Yup. Try to sell your house yourself and realtors will stir people away from your home. Negotiate a lower rate, they won't show your home.

I thought all real estate agents were criminals........what's new?

Real estate agents produce this sentiment in me. No, I do not wanna sell this house, now get out.

Realty commissions are drastically inflated. Does the realtor/broker offer you greater service the higher the value of the home and therefore their commission? No, the same work is done, this should be a flat rate adjusted for inflation

Real estate agents are important to get you the best deal on the biggest purchase of your life

There is no job that is so grossly overcompensated for the amount of work you actually do. And I say this as a former realtor.

Wait, I shouldn’t take advise from someone making the largest commission of their lives?

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Greater Toronto Area real estate approaching ‘buyer’s market’: BMO | Globalnews.caCanadian real estate prices have sizzled for years as the COVID-19 pandemic turned the market white-hot. Now, home listing data suggests the scorching pace is cooling.
Source: GlobalNational - 🏆 81. / 51 Read more »

Worry, buyer’s remorse high as real estate market slowdown materializesWorry, buyer’s remorse high amid housing slowdown Good. Need a massive crash to reconnect home prices with local incomes. Maybe this will be a win, they’ll decide to get a roommate, and someone will have somewhere new to live. There is too much misallocation of Capital, time to put it to better use then just flipping each other houses because banks are willing to give bigger mortgages
Source: globeandmail - 🏆 5. / 92 Read more »

Worry, buyer's remorse high as real estate market slowdown materializesA wave of buyer's remorse is taking shape in several heated real estate markets, after housing prices started dropping and the number of sales slowed over the last two months. This was bound to happen...the real estate market is way out of control!! But history shows that while there are dips prices overall continue to rise. It’s all relative there is only remorse if you sell at the wrong time or forced to sell because you got in over your head with mortgages and expenses. Poor babies
Source: CTVNews - 🏆 1. / 99 Read more »

Worry, buyer's remorse high as real estate market slowdown materializesA wave of buyer's remorse is taking shape in several heated real estate markets, after housing prices started dropping and the number of sales slowed over the last two months. Explain it any way you want. Bottom line the realtors created the frenzy by their lousy sales tactics. They used the media to sell and it did. This is the aftermath. I have been waiting for it. Canada’s housing market is not the same across all provinces and even within a province there are major differences per cities
Source: CP24 - 🏆 30. / 67 Read more »