Competion Bureau and Canadian Real Estate (CREA) - What Does The New Agreement Mean To You As A Home Buyer or Home Seller???

 Now that the media buzz has dwindled, as a home buyer or home seller, what does the agreement between The Canadian Real Estate Association and the Canadian Competition Bureau mean to you?

Please let me first state that this is my own personal feeling and not necessarily that of the government, my colleagues or The Canadian Real Estate Association (CREA).

Competition was and now is definitely alive and well in the real estate industry, at least it always was in Winnipeg, Manitoba. In fact the issues that arose 30 years ago and in recent years were in Ontario and Alberta. Winnipeg's real estate agents always offered a varied menu of services and real estate commissions have been negotiable for 3 decades so the agreement that transpired between CREA and the government in October 2010 really does not impact the way buyers and sellers in our province can obtain Professional Representation.

The biggest change in Manitoba from this agreement is that a seller and their respective Broker, can instruct a buyer agent to contact the seller directly to make an appointment to show their home and even present offers directly to the seller.  In fact up until the mid-1990's agents had at times instructed to contact the seller to book appointments - so nothing new there!

As for direct presentation of offers, time will tell how many sellers will want to go this route as the Offer To Purchase is a complex document and requires care and skill in not only preparation, but in consideration before an acceptance otherwise problems can occur. Yes, a lawyer can review an offer before it becomes final and binding, and there are instances where that is definitely a good idea such as in the case of an estate, but in more common transactions, REALTOR's®  are well trained on the completion and presentation of this document that having a lawyer review it can "disrupt the apple cart" as negotiation is an emotional process that requires continuity to keep the parties moving forward to an agreement.

As a buyer agent, I personally see concerns for my client buyer dealing directly with the seller (known as mere postings, not having their REALTOR® present or even having a broker represent them - known as an unrepresented Seller) as the seller is not regulated by the Manitoba Securities Commission, only licensees (real estate agents and brokers are) so not bound by the same regulatory demands which can cause chaos. Imagine if a buyer agent is told that multiple offers are present, with REALTOR's®, we are bound to follow a Multiple Offer Protocol (a set of guidelines that I proudly was involved on the taskforce to present to the Registrar of the Manitoba Securities Commission) that ensures that there is a level of transparency for the competing buyers so that there is a level playing field.

 I will add more thoughts on this as time goes on, so please check back. Your comments and questions are most appreciated so please either call 204-946-5333 or email me at  BloggerHelp@jeffstern.com.

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