Those involved in three pending court cases are closely watching the Competition Bureau’s application to the Competition Tribunal – all involving Lawrence Dale, Realtysellers and related business models. Dale confirmed to REM in April that a $750 million lawsuit, filed but not served in October, has now been served against Toronto Real Estate Board (TREB) officials and members, as well as a number of other individuals, including senior executives from Royal LePage and Re/Max Ontario-Atlantic Canada. This $750 million lawsuit alleges breach of contract and actions contrary to the Competition Act, on behalf of plaintiffs Dale and his Realtysellers co-founder Stephen Moranis, as well as Toronto real estate broker Fraser Beach.
Meanwhile, an earlier lawsuit for $100 million on behalf of the same plaintiffs is pending trial – this lawsuit was served in September on CREA, TREB and a number of related association and board officers. Dale and fellow plaintiffs are also appealing a December 7, 2010 Ontario Superior Court ruling that TREB was justified in suspending access to its MLS database to Fraser Beach, who was operating a discount brokerage website.
This appeal, and the two other lawsuits, likely won’t be heard before mid- to late 2011, well after any tribunal hearing is expected to be held.
Correction: But as a private seller, would you know? (end of 2nd para)
Should read: But as a private Buyer, would you know?
Typo: There is way to much opportunity (last sentence)
Should read; There is way too much —
Thank you
Personally I am not against anyone trying to implement a new and non-confused working model in our industry. However, I do see some pitfalls in the workings of "just" putting a house on MLS as a listing. The media has inferred that the public will be dealing directly with CREA to have their houses put on mls.ca now realtor.ca (No one has explained that neither urls were or are an MLS system.) There is so much more to selling or buying a house, than thinking of the business in these terms.
Each and every one of us does not know what exactly it is that we do not know until we find out we don't know it. Ideally one would know the right questions to ask, but this, too, is often not so. Eg. If you are buying privately, and the seller is a non-resident, you could be held liable personally, for the withholding tax. Hopefully your agent would know to ask. But as a private seller, would you know?
Yes, your lawyer will ask that question. But some have been known not to have done so, after the fact. Just one more question for the REALTOR(r) to ask; more responsibility on his shoulders. Why: because he doesn't want or need to pay that money out of his own pocket, possibly, if he failed to investigate that issue.
Read: http://www.carolyne.com/buyerinfo.html – and then decide if you need an agent. If houses are just "put" on MLS, using CREA, with no further discussion, no representation, does that not leave the public in jeopardy? and how much explaining of the buyer's or seller's rights will be "left undone," using this model? and, will it fall within the honour system as to whether the public was "read their rights" prior to just putting houses on MLS? At this time the board owned and operated MLS requires an agent to be involved.
Part of the danger to the public, that I have not yet seen addressed by the media frenzy, is that this could, and I predict will, become a bait and switch possibility. How long will that contract be for just putting the house on MLS? and what does it "really" mean? will there be a holdover clause, and a "what if" clause? Will there be any agent-guidelines that must be followed? (of course there will be)
If the public decides to opt for full service or part thereof, will the public then have to use that same agent who "just" put the house on MLS? is his choice limited to continue working with the agent who just put the house on MLS?
It appears that full service MLS needs some expansion of definition as to its value. It has been made abundantly clear that some people, even in the industry, just don't "get it." I'm all for models that freely explain to the public what partial services means, but sadly, it is not always explained in detail, apparently. There is way to much opportunity for jeopardy already in this business without looking for it.
Just my thoughts.
Carolyne L
Carolyne Realty Corp. http://www.Carolyne.com
I agree with John M. I have been in this industry since 1989 and have never heard of anything so frivolous! $750 million dollars – really??? What a disgrace to our industry and the many hard-working professionals who earn their fees by working hard for clients and with the utmost integrity. In essence, these plaintiffs want to "sell" access to the MLS to sellers at a discounted rate rather than sell their services. The latter requires that they actually perform some work…imagine that. I wonder if they are representing themselves in court or perhaps using the services of a "discounted" lawyer to represent their $750 million dollar escapade ??? Hypocrites…they should be ashamed of themselves.
So the story goes:
" This $750 million lawsuit alleges breach of contract and actions contrary to the Competition Act"
But John M asks:
Even in the event that : breach of contract and actions contrary to the Competition Act have taken place, how do these 3 attribute damage caused to them to the tune of $750 million dollars?
If I was the trial judge in this matter, I'd boot these guys out of court so hard, that they'd land on TREB's parking lot to a waiting angry croud of Realtor's. TREB may have been an easy cash cow in the past fellows but I don't think they're going to be such an easy target this time. Thanks for making life interesting with your lawsuit anyhow. I can't wait to see what happens from here on.