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Canadian real estate groups are increasingly coming under scrutiny for alleged anti-competitive behavior, with the Yukon Real Estate Association (YREA) the latest to be targeted.
Last week, the Competition Bureau announced that it had entered into a settlement agreement with YREA, finding that YREA had engaged in anti-competitive behavior by requiring certain potential members to reside in the Yukon for a year before joining.
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The residency requirement, which is considered an “abuse of dominance” under the Competition Act, was found to hinder new competition, particularly in services that offer consumers alternative choices and fee structures compared to traditional full-service real estate agents.
“We don’t know who brought the matter to the office’s attention,” YREA President Marc Perreault said in an interview. “The club has never rejected anyone’s application to the club. We believe this is due to a review of our policies following a similar review of a complaint in another jurisdiction.”
In November, the Competition Bureau signed a consent agreement with the Northwest Territories Association of Realtors addressing a similar requirement.
Perreault said the YREA's introduction of a residency requirement was based on the fundamental belief that consumers will benefit and be protected from access to local agents and brokers who are intimately familiar with Yukon's unique characteristics.
As part of the April 25 consent agreement, YREA committed not to introduce or enforce residency requirements and to ensure non-discriminatory market access for future competitors.
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“Competition in the real estate sector is critical to Canadians,” Competition Commissioner Matthew Boswell said in a press release announcing the agreement. “It stimulates innovation, lowers prices and improves the consumer experience. Protecting competition in the real estate sector remains the Competition Bureau's top priority.” The consent agreements come as Canadian real estate regulators also face more serious allegations of anti-competitive behavior.
A federal judge on Sept. 25 approved a class-action lawsuit alleging home sellers in the Greater Toronto Area paid artificially inflated commissions. The lawsuit accuses major brokers and real estate organizations in Toronto of implementing rules that limited competition for buyers for brokerage services, resulting in higher prices.
A similar class action lawsuit has since been launched, representing homebuyers across Canada.
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Competition Bureau spokesman Emmanuel Morin said investigations and complaint handling must be conducted confidentially when the bureau is involved. He added that potential compliance issues are identified in various ways, “e.g. B. by collecting information, complaints and referrals from other authorities”.
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