Canadian Realtors have avoided an additional association fee after a proposed $75 per-member special assessment was voted down at the Canadian Real Estate Association’s annual general meeting in Ottawa on Apr. 8.
The fee had been intended to provide a substantial boost to CREA’s legal fund amid escalating litigation tied to ongoing commission-related lawsuits and a Competition Bureau investigation. CREA previously told members its legal costs surged substantially from $626,000 in 2023 to over $4-million in 2024—a nearly 540 per cent increase.
The vote was close, with 57 per cent of delegates voting against the assessment.
CREA’s response
In a statement, CREA spokesperson Pierre Leduc says, “The legal issues facing our industry are momentous: they are of national significance, high-profile, and often precedent-setting. As a result of today’s vote on the Legal Defence Program special assessment, CREA will now take the time to assess the impact of this outcome and adjust accordingly.”
Since its inception in 2006, CREA’s Legal Defence Program maintained a $2-million balance. The national association had intended to use the approximately $12-million that would have been generated from the levy to fund ongoing legal defence and increase the available balance in its legal fund to $10-million.
CREA had also proposed raising the new member initiation fee from $200 to $500 to replenish its contingency reserve fund. That motion—which passed narrowly with 51 per cent of delegates voting in favour—will take effect in June.
Industry reaction
Industry reactions to the vote were mixed. Brad Mitchell, CEO of the Alberta Real Estate Association, opposed the fee, arguing revenue should already cover legal expenses.
“CREA has a lot of resources, and ultimately, I think we saw in the defeat of the first motion a message from the membership that CREA already has the resources it needs to be successful,” Mitchell said shortly after the vote. “CREA has lots of opportunities, and they have a talented board of directors. I think they’ll figure it out.”
“Time to be bold—the membership is asking for it,’ says SRA CEO Chris Guerette
Saskatchewan Realtors Association CEO Chris Guerette supported the assessment, previously emphasizing unity during challenging times. “I would say the motion failing today is more a message to CREA than about the actual intent of this $75 levy—we are generally unified when it comes to properly defending this sector from litigation,” she tells Real Estate Magazine.
“While good fiscal progress has been made in the last year, the membership is sending a clear message that they want more from CREA’s performance,” Guerette adds. “In my opinion, this creates a nice landscape for CREA: they now have a clear political mandate to use this crisis as they see fit—innovate, cut and create large-scale efficiencies. Time to be bold—the membership is asking for it.”
Next steps
With the rejection of the special assessment, CREA may need to consider alternative strategies.
“The legal landscape has become more litigious, not just in Canada but across North America,” James Mabey, immediate past chair of CREA, told REM in a March interview. Mabey previously indicated CREA would need to explore other measures, potentially including increasing regular membership dues, underscoring the unpredictable nature of the current legal landscape.
In the meantime, CREA promises that “critical defence against the Sunderland and McFall litigation and the Competition Bureau investigation will continue.”
Jordana is the editor of Real Estate Magazine. You can reach her by email.