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U.S. Real Estate Commission Lawsuit: A Potential Game Changer for Canadian Realtors

Recent developments in the United States have put the spotlight on the real estate industry, with a court ruling that found realtors colluded to receive higher commission rates. As a similar case works its way through Canadian court, this could change the way Canadian real estate agents do business, according to industry analysts. Let’s take a closer look at the implications of these lawsuits on the real estate market in both countries.

Background: The U.S. Court Ruling

Earlier this month, a jury in Missouri found the National Association of Realtors and others guilty of inflating real estate agent commissions. While the verdict has been appealed, more lawsuits examining real estate agent commissions have been brought forward in the U.S. These legal proceedings could have a significant impact on Canadian realtor practices, as industry policies in both countries share many similarities.

Canadian Class Action

A class-action lawsuit examining similar practices has also been launched in Canada, and the lawyer handling the plaintiff’s case is hoping for a result similar to the one recently reached in Missouri. The Canadian Real Estate Association (CREA) has been named in the proposed class-action lawsuit. A spokesperson for CREA stated that they consider the claims to be without merit and will continue to vigorously defend against them.

Real Estate Commissions: A Point of Contention

Walter Melanson, co-founder and market analyst at, highlights that many people in the U.S. and Canada may not be aware of how real estate commissions work. The U.S. lawsuit argued that home selling agents are negotiating the commission of the buyer’s real estate agent before a sale has been made, resulting in inflated rates. Melanson believes that a better system would be one where the listing agent does their job, and then the buyer agent comes in to negotiate their commission during the offer process.

Will Canadian Realtors Be Affected?

Canadian realtors have very similar policies to their U.S. counterparts, and Melanson expects this ruling to change the way real estate agents and brokers operate. Many U.S. brokerages have already started to change how they do business, which could influence Canadian practices in the future.


As the U.S. court ruling on real estate commissions continues to unfold and the Canadian class-action lawsuit progresses, the real estate industry in both countries is likely to experience changes in how agents and brokers operate. While the outcome remains uncertain, the potential for reform in commission structures and practices could ultimately benefit both buyers and sellers in the real estate market.

Orginal article: Link To Article – provided by Kansas City Realtors