3 Days – that’s it?

“Duty of Cooperation”, it might not be trending on mainstream media yet, but it is a hot topic amongst Canadian Realtors®.  Last week at the Canadian Real Estate Association’s annual general meeting in Ottawa, delegates from boards and associations across the country voted 83% in favour of adding a new Duty of Cooperation to the Realtor® Code, which is accompanied by a Realtor® Cooperation Policy.

The policy will require listing agents to list properties on MLS® within three (3) days of marketing them publicly, making it an ethical obligation. 

The new policy explains public marketing as the representation or marketing of a listing to the public or anyone not directly affiliated with the listing brokerage (office) in a business capacity. 

Additionally, the new changes also effect exclusive listings, meaning if a seller does not want their property on MLS®, the listing agent would only be able to market the property exclusively, or more simply stated, on a one-to-one basis and not publicly.  That means no for sale sign, no social media posts, no print advertising, and the list goes on. What it does allow is marketing within your brokerage, or to another Realtor® or person on a one-to-one basis.

The revised policy also includes enhanced disclosure and consent requirements between Realtors® and their seller clients. Realtors® will have to disclose to the seller the benefits of listing the seller’s property on an MLS® System, including greater exposure of the property to more potential buyers, which may result in more offers and increase the likelihood of receiving the best offer in terms of price or other terms and conditions of sale.

This all stems as consumers have been becoming increasingly frustrated by the rising misuse of marketing tactics that were keeping listings off MLS® Systems, limiting the exposure of available properties to Realtors® and their buyer and seller clients. It was recognized by the Canadian Real Estate Association (CREA) that there was an imminent issue.

“The increase in the availability of social media highlighted an unfair advantage that some clients were receiving, which prompted us to ensure fair competition in the industry. It is essential that all buyers have equal opportunities to access all listings available for sale and that exclusive listings are used solely for their intended purpose. While there may be rare circumstances where you may not want to make your listing public, such as confidential listings, it’s crucial to maintain transparency and fairness in the industry. Boards and associations brought this issue to our attention since they’re responsible for addressing complaints and enforcing ethical standards among realtors. Through extensive consultation and engagement with our members, we worked to develop a policy that upholds high ethical standards and provides fair competition for all parties involved”.  Jill Oudil, Immediate Past Chair of CREA.

 

 

 

The new policy, which will come into effect on January 3, 2024, is focused on the purchase and sale of residential properties, which form the bulk of real estate transactions on MLS® Systems. This timeline will provide real estate boards and associations time to review their current rules and ensure they are compliant with the policy.  It will also allow Realtors® time to become familiar with the change and new documentation that is required.

 

Hopefully, both Realtors® and consumers will become aware and understand the scale and depth that this new change will have.  If you have any questions and want to talk about this or anything real estate related, please send me a message or email, I am always happy to help.