Original lawsuit involves brokerages in Greater Toronto Area
The scope of a legal challenge alleging price fixing within the residential real estate industry has been widened to include all regions of Canada, thanks to a second class-action lawsuit filed last month.
The new statement of claim was officially filed in the Federal Court on Jan. 19, according to Kalloghlian Myers Limited Liability Partnership (LLP), the law firm that is pursuing the claim.
The new claim contends that real estate brokerages nationwide — with the exclusion of the Greater Toronto Area — engaged in illicit practices, leading to unjustifiable increases in residential real estate commissions. Additionally, it alleges the Canadian Real Estate Association (CREA) and local real estate boards across the country helped facilitate these alleged violations.
It follows an original class-action lawsuit involving brokerages in the Greater Toronto Area (GTA)
Central to the case is a regulation compelling home sellers using the Multiple Listing Service (MLS) to offer a commission to the buyer’s real estate brokerage. The lawsuit contends that this rule, wherein sellers foot the bill for buyer brokerage services, stifles competition in the buyer brokerage side of the market, resulting in elevated commissions within an already fiercely competitive market.
In the legal filing, the plaintiff, Kevin McFall of Milton, Ont., says he enlisted representation from Royal LePage Meadowtowne Realty, which concurrently acted on behalf of the buyer in the transaction.
“For Canadians, these commission expenses are a very substantial cost on the sale of a home and they erode people’s savings,” Paul Bates of Bates Barristers P.C., a legal professional involved in the suit against CREA, said.
“The contention in both cases, including the recently filed case for all the geographies outside the GTA is that the buyer broker commission should not be forcibly taken out of the seller’s sale proceeds, and that commission should be negotiated by the buyer broker with the buyer. And in that event, the commission would be far far less than it has,” Bates said.
John Syme of John Syme Law, another lawyer working on the case, said a favourable outcome could lead to compensation and alterations in the regulations overseeing commission payments.
In both cases, the legal teams are seeking compensation, not only for their clients but also for individuals who have bought residential real estate since 2010.
Syme said that a change to the rules might involve altering the current mandate where real estate sellers are obligated to cover the costs of services utilized by buyers.
According to Bates, the GTA case is anticipated to reach a resolution within the next two to three years but the “pay scheduling is an ongoing endeavour.”
“The outside GTA case should conclude a couple of years after,” Bates said.
In September, when the Federal Court green-lit the class-action lawsuit against the GTA real estate industry, the Canadian Real Estate Association issued a statement.
“We continue to believe the claims against CREA and other defendants are without merit, and we will continue to defend our members in this case,” it said at the time.
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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
The Canadian Press. All rights reserved.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
The Canadian Press. All rights reserved.
VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.
Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.
The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.
Wednesday was the last day for advance voting, which started on Oct. 10.
More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.
Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.
An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.
This report by The Canadian Press was first published Oct. 17, 2024.
The Canadian Press. All rights reserved.
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