Re/Max Canada confirms it has reached a “substantial agreement on monetary terms and business practice changes” to resolve two proposed class-action lawsuits challenging real estate commission structures. This marks a significant development in the ongoing legal battle over real estate commissions in Canada.
The lawsuits, Sunderland v. Toronto Regional Real Estate Board and Kevin McFall v. Canadian Real Estate Association et al, allege that rules requiring homesellers to pay buyer brokerage commissions inflate costs and restrict competition.
“This decision was made in the best interest of the Re/Max brand in Canada”
While Re/Max Canada continues to deny any wrongdoing, the company said in a statement, “This decision was made in the best interest of the Re/Max brand in Canada, including its franchisees and their sales associates, after carefully considering the significant risks and costs associated with continued litigation.”
Re/Max Canada emphasizes that a settlement “would pave the way for a clear path forward for the RE/MAX brand, its franchisees and their sales associates, removing the uncertainty of ongoing litigation related to these cases.”
Ongoing proceedings
The company declined further comment “given confidentiality agreements and ongoing proceedings.”
REM has reached out to other defendants named in the lawsuit, including the Canadian Real Estate Association and the Toronto Regional Real Estate Board.
More to come.
Update (Feb 21., 1 pm EST): This article has been updated to reflect a revised statement from Re/Max Canada. The previous statement suggested that a settlement had been reached. However, the revised statement clarifies that Re/Max Canada has reached an agreement on settlement terms, and the settlement has not yet been finalized.
Jordana is the editor of Real Estate Magazine. You can reach her by email.