As his demanding term as president of the Canadian Real Estate Association (CREA) drew to a close, Andrew Peck reflects on a year marked by significant personal milestones and profound professional dedication. Beyond his extensive travels across the country, engaging with Realtors and stakeholders, Peck also found time to celebrate marriage – twice, to the same partner, he quickly clarifies with a chuckle. A planned third ceremony at their Florida vacation home was thoughtfully redirected, with funds supporting hurricane settlement charities in the wake of Hurricane Irma. This blend of personal resilience and community focus underscored his leadership style throughout a pivotal year for Canadian real estate.

Direct Engagement: A New Era for CREA and Its Members

The core of Andrew Peck’s presidency was defined by a steadfast commitment to direct engagement with the grassroots membership. “You can’t be good governors of an association unless you are out there listening to the membership, and when I say the membership, I mean the Realtor on the street, not the leadership of the real estate boards,” Peck emphasizes. This philosophy marked a significant evolution in CREA’s approach.

A few years prior, the traditional three-way agreement governing organized real estate in Canada was amended. This crucial change empowered CREA to bypass the sole reliance on local boards and provincial associations for communication, enabling direct outreach to individual members. This strategic shift allowed CREA to gain unfiltered insights and foster a stronger sense of community among its 150,000+ members. Peck, who is also the respected broker/owner of Royal Pacific Realty Group in Vancouver, proudly notes the substantial improvements in communication channels over his seven years on CREA’s Board of Directors, culminating in successful “Open House” events that connected CREA leadership directly with Realtors nationwide.

Navigating the Evolving Structure of Organized Real Estate in Canada

The foundational structure of organized real estate remains a central topic of discussion and reform within the industry. The existing framework, often referred to as the “three-way agreement,” outlines the relationship and responsibilities between local real estate boards, provincial associations, and the national body, CREA. While designed to ensure local representation and national standards, its efficacy and efficiency have increasingly come under scrutiny.

Efforts to streamline this structure through the amalgamation of real estate boards and provincial associations have faced significant hurdles, notably failing in British Columbia in 2016 and Saskatchewan this year. Peck, a member of the Vancouver board, was a vocal supporter of such “right-sizing” initiatives. He champions the idea that consolidating or optimizing board structures could lead to greater efficiencies and better service for Realtors and consumers alike. The status quo, he argues, can create unnecessary complexity and cost.

Peck vividly recalls an encounter that underscored this challenge: “I was in Mississauga and one fellow told me he has to belong to four real estate boards to be able to provide services and connect his customers. I was shocked. That is not serving the Realtor and it certainly is not serving the consumer.” This anecdote highlights a critical pain point for many practitioners who operate across geographical boundaries defined by historical, rather than practical, board jurisdictions. Peck stresses that this isn’t about protecting existing “turf,” but rather about implementing the most beneficial solutions for Realtors collectively. He reassures boards apprehensive about losing local control that fundamental operations would remain intact. “If the real estate board is called something else, it doesn’t matter, the Realtor is still the same Realtor, the brokerage is still the same brokerage, working in that community. Nothing changes,” he asserts, emphasizing that the focus should always be on serving the community’s Realtors effectively, not merely preserving an administrative entity.

The dialogue surrounding the three-way agreement is ongoing, with a working group actively discussing its future as recently as November at the National Association of Realtors conference. The central theme of these discussions consistently revolves around achieving “efficiencies and doing more with less.” A summary paper presented in February highlighted the need for clearer language within the agreement, specifically concerning dispute resolution mechanisms. Peck points to provinces like PEI, Newfoundland, and Nova Scotia, which already operate successfully with just two levels of governance, as examples of alternative models. He suggests that while some resistance to change is natural, the industry shouldn’t be afraid to explore modifications to the agreement, allowing for greater flexibility when disagreements arise, rather than being “locked into this three-way marriage if you don’t need to be.” He concludes, “Some things might change but I think the provincial associations still have tremendous value and I think CREA has a leadership role to play in this and always will,” underscoring his belief in the continued importance of a robust, yet adaptable, multi-tiered structure.

The Complexities of Dual Agency in British Columbia: A Moderate Solution?

One of the most significant regulatory changes impacting the industry recently came from Peck’s home province of British Columbia, which announced an impending ban on dual agency. Dual agency, where a single Realtor represents both the buyer and seller in the same transaction, has long been a contentious issue. Critics argue it presents an inherent conflict of interest, making it difficult for the agent to fully advocate for the best interests of both parties. Proponents often highlight its potential for efficiency in certain market conditions or rural areas.

Peck views BC’s ban as a “moderate solution that is not killing the industry.” He clarifies a common misconception among Realtors, stating, “I think Realtors believed that doing away with dual agency was doing away with double-ending and that’s not what they have done.” He explains that the government’s intent was not to eliminate the ability of an agent to earn commission on both sides of a deal, but rather to ensure enhanced disclosure and consumer protection. The new rules mandate that agents clearly explain to unrepresented buyers that engaging an independent agent who is not also working for the seller would afford them better, undivided representation. “Explain that to the buyer, that if they want to go with me and I’m working for the seller, that’s what it’s going to look like. I don’t think there’s anything wrong with that,” Peck says, advocating for transparency. He dismisses the concerns of a “few (Realtors) who will chirp and say this is terrible,” believing they fundamentally misunderstand that the change does not eradicate their ability to work on both sides of a transaction, but rather reframes the nature of representation and disclosure, putting the consumer’s understanding first.

Strategic Advocacy: CREA’s Approach to Government Relations

The past few years have seen Canadian governments increasingly intervene in housing markets, particularly in hot spots like Toronto and Vancouver, in response to mounting concerns over debt levels and housing affordability. These interventions have ranged from foreign buyer taxes to new mortgage stress-test rules, all aimed at cooling an overheated market. Andrew Peck expresses a cautious stance on such governmental actions: “I don’t think governments generally should intervene much in markets. I think when they do, it has unintended consequences. The more intervention there is, the more the markets work around them.”

Despite this general skepticism, Peck highlights a major win for CREA when the federal government amended its controversial tax proposals for personal incorporation. This success, he explains, was a direct result of CREA’s strategic and collaborative advocacy. “CREA approached it the right way…not to scream at government and say they were idiots but to work with them, provide them with insight and some research and say we understand what you are trying to do, but let’s look at the ways we can all achieve the same thing.” This nuanced, data-driven approach, focused on offering constructive solutions rather than aggressive confrontation, yielded positive outcomes for both the real estate industry and the government. He contrasts this effective lobbying with less productive, confrontational methods: “There were others in the country who were lighting their hair on fire. Governments have big ears and it’s not helpful for Realtors in one part of the country to scream and say that they are setting up class warfare, or this is unfair to people who are generating income to the economy. That’s a stupid way to play politics. It is way more helpful to have the door open to you to be in the conversation.” This underscores the vital importance of maintaining open communication channels and presenting well-researched arguments in government relations.

Emerging Challenges: Marijuana Legalization and Property Disclosure

The impending legalization of marijuana across Canada, particularly the provision allowing individuals to grow plants in their own homes, presents a significant and complex challenge for Realtors regarding property disclosure. Historically, Realtors have been obligated to disclose if a property was used as a “grow op,” typically associated with illegal, large-scale operations involving power theft and structural modifications. The legal cultivation of a few plants at home blurs these lines considerably.

“What are we going to disclose going forward? In the past, we have said that Realtors must disclose if a property has been used as a grow op. How do we evaluate as a Realtor what’s a grow op and what isn’t?” Peck queries, highlighting the ambiguity. He differentiates between easily identifiable illegal operations (“Stealing power and putting a factory inside the house, that’s pretty easy to understand”) and the new scenario: “But when you’ve got four plants in your home, is that a grow op? Are the police going to tell us that? We have to come up with some solutions for that.” This situation demands clear guidance from regulators and industry bodies to prevent Realtors from being put in a difficult position, potentially facing liability for non-disclosure or over-disclosure. It raises questions about potential property damage, mold risk, insurance implications, and the general stigma, requiring a comprehensive industry response.

Another area where CREA continues its advocacy efforts is the Home Buyer’s Plan (HBP). CREA consistently presses the government to make vital changes, including a provision that would allow parents to withdraw funds from their Registered Retirement Savings Plans (RRSPs) to assist their children with a home down payment. This measure aims to address the persistent challenge of housing affordability, particularly for first-time buyers. However, the government has shown reluctance to introduce any form of stimulus to the housing market at a time when it is actively implementing measures like the new mortgage stress-test rules, designed precisely to cool consumer debt and temper the market.

A New Chapter: Leadership Transition at CREA with CEO Michael Bourque

A primary institutional priority for CREA during Peck’s presidency was the critical task of finding a successor for retiring CEO Gary Simonsen. This extensive search culminated in the appointment of Michael Bourque, formerly the CEO of the Railway Association of Canada, to lead CREA into its next chapter. Peck underscores the unique demands of this role, noting, “Unlike most associations, CREA is also a technology provider and that has a completely different skillset than association management.” This dual nature requires a leader with not only strong governance and stakeholder management abilities but also a keen understanding of technological innovation and its application within the real estate sector.

The rigorous selection process involved external expertise. “We hired an expert to assist us and let them do their job. We don’t FSBO the experts. We let them do what they do and I think that was really helpful for us,” Peck explains, highlighting CREA’s commitment to professional and unbiased decision-making in such a crucial appointment. Bourque’s leadership is anticipated to blend traditional association governance with a forward-looking approach to technology, ensuring CREA remains at the forefront of serving its members in an increasingly digital world.

Fostering Inclusivity: Youth and Diversity in Real Estate Leadership

Looking at the broader dynamics within the real estate industry, Peck expresses optimism regarding the influx of new talent. “I was pleasantly surprised to see the number of younger people getting in the business. For a number of years, we were looking at how the Realtor population was aging. Now we are seeing a lot more new blood coming in,” he observes. This rejuvenation brings fresh perspectives and energy to the sector, ensuring its continued vibrancy.

However, Peck quickly points to a significant disparity: while the overall Realtor population is becoming younger and more diverse, leadership roles within boards and associations do not yet reflect this change. “They are not reflective of the youth and they are not reflective of the ethnic diversity of the population. They are also not reflective of gender balance. That’s one of the things we have to pay more attention to because that’s the consumer out there. Their diversity is very different from what I see sitting on our boards of directors.” This observation is a critical call to action for the industry. Diverse leadership brings a wider range of experiences, perspectives, and ideas, which are essential for effective governance and for truly representing the diverse needs of both the Realtor community and the increasingly multicultural Canadian consumer base. Addressing this gap will be crucial for the continued relevance and strength of organized real estate.