Understanding CREA’s New Realtor Cooperation Policy: Enhancing Transparency in Canadian Real Estate
At its recent annual general meeting in Ottawa, the Canadian Real Estate Association (CREA) achieved a significant milestone, with delegates from boards and associations nationwide overwhelmingly endorsing a new “Duty of Cooperation” to be integrated into the esteemed Realtor Code. This crucial amendment is complemented by a comprehensive Realtor Cooperation Policy, signalling a pivotal shift towards greater transparency and fairness within Canada’s real estate landscape.
The newly approved policy, set to come into force on January 3, 2024, establishes a clear ethical obligation for real estate agents. It mandates that properties marketed publicly must be listed on the Multiple Listing Service (MLS) system within three days. This move aims to ensure that the vast majority of available listings are accessible to all potential buyers and their agents, fostering a more equitable and efficient market for consumers across the country.
CREA’s definition of “public marketing” is broad, encompassing any form of advertising or promotion of a listing to the general public or to any individual not directly affiliated with the brokerage firm and its licensed agents responsible for the listing. However, the policy makes specific allowances: one-to-one marketing—such as direct conversations with a specific prospective buyer—and marketing exclusively within the listing brokerage will continue to be permitted. This nuanced approach seeks to balance broad market exposure with flexibility for specific client needs. The substantial support for this change, with over 82 percent of voting delegates in favour, underscores a widespread recognition within the industry of the need for enhanced cooperation and clearer guidelines.
While the policy has garnered strong backing, some realtors have voiced concerns regarding its potential impact on their business practices and, critically, on client privacy. Jill Oudil, CREA’s immediate past chair, recently addressed these vital questions in an insightful interview with Real Estate Magazine. Oudil clarified that the new policy was developed as a direct response to mounting concerns from local boards across Canada. These boards reported a noticeable increase in the misuse of certain marketing tactics that effectively kept listings off the MLS, thereby limiting consumer access and potentially disadvantaging sellers by restricting their property’s exposure to the widest possible buyer pool. This interview has been edited for length and clarity to provide a comprehensive overview of the policy and its implications.
The Genesis of Change: From Local Concerns to National Policy
Real Estate Magazine: Let’s begin by tracing the journey from 2021 to the decisive vote on the amendment to the Realtor Code at the AGM. What specific concerns did CREA hear from various boards and associations, and how did the organization respond to these challenges?
Jill Oudil: The initiative for this significant policy change truly began bubbling up around 2021, when a diverse array of boards and associations from across Canada started approaching CREA. They were encountering distinct issues in their respective markets, yet a common thread of concern emerged. These concerns revolved primarily around the perceived limitations of certain marketing tactics and, more critically, the growing trend of listings being marketed in a way that effectively hid them from the broader market. This situation created an uneven playing field, potentially disadvantaging both sellers seeking the best possible price and terms, and buyers looking for comprehensive access to available properties. Boards expressed a clear need for a solution that would help maintain the high standards of professionalism expected of Realtors, prioritize the interests of both customers and consumers, and ultimately enhance the quality of service provided to clients.
Simultaneously, we at CREA were closely observing similar developments in the United States. The National Association of Realtors (NAR) had, a few years prior, implemented a clear cooperation policy for very similar reasons – addressing issues related to off-market listings and ensuring fair access. Their experience provided a valuable blueprint. We thoroughly examined NAR’s policy, drawing inspiration from their approach and adapting it to the unique landscape and regulatory environment of the Canadian real estate market. This informed and collaborative process allowed us to develop a policy specifically tailored to address the concerns that had been brought to our attention by Canadian boards and associations.
Evolution of the Policy: Key Enhancements and Consultative Development
Real Estate Magazine: The Realtor Cooperation Policy set for implementation next year marks a significant update. How does this version differ from the policy that was initially introduced last fall?
Jill Oudil: The policy we’re preparing to implement next year is indeed a refined version, a testament to an extensive and collaborative engagement process. After the initial proposal last fall, we dedicated considerable effort to engaging directly with boards and associations across the country. Our aim was to gain a deeper understanding of their biggest concerns, identify areas that were not working as effectively as intended, and gather constructive feedback. This comprehensive consultation with our membership was invaluable.
Based on this feedback, we made two primary, yet impactful, alterations to the policy. Firstly, we broadened the scope for one-to-one marketing of exclusive listings. The initial proposal was somewhat more restrictive, but through our consultations, it became clear that allowing realtors from all brokerages—not just those within the same office—to engage in one-to-one marketing was a practical and necessary adjustment. This ensures that while a listing might initially be exclusive, it can still be presented to a wider network of qualified buyers through direct, personalized outreach, without immediately triggering the MLS listing requirement. Secondly, the updated policy now includes a crucial disclosure requirement. If a client ultimately decides not to list their property on MLS, the realtor is ethically obligated to provide them with a clear explanation of the benefits that MLS offers in terms of market exposure and potential for securing optimal terms and price. These key shifts represent the main improvements in the latest version of the policy, which we firmly believe was strengthened through this collaborative and iterative process with our valued stakeholders.
A Collaborative Foundation: The Working Group and Stakeholder Engagement
Real Estate Magazine: Could you elaborate on the composition of the working group responsible for developing this policy?
Jill Oudil: The working group behind this policy was deliberately diverse and robust, reflecting a wide cross-section of expertise and experience from across the country. Many of its original members were CEOs from various real estate boards, individuals deeply immersed in the day-to-day issues affecting their respective regions and acutely aware of the evolving market situation. Their intimate knowledge of local dynamics was invaluable. Beyond this core group, our development process was highly inclusive. We conducted extensive member surveys to gather broad feedback and organized numerous regional consultations, directly engaging with boards of directors and associations—all of whom are practicing realtors. This ensured that the policy was shaped by those on the front lines of the industry.
To further support our understanding, we commissioned a white paper, which provided an in-depth analysis of the network effects and inherent value of Canada’s MLS systems. This academic rigor complemented the practical insights we were gathering. We also facilitated various open forums, an Executive Assistant (EA) seminar, and a significant session in February, all of which brought together a wide mix of industry leaders – from experienced brokers to front-line realtors and association presidents. This extensive, multi-faceted engagement ensured that the group thoroughly explored every viable option, meticulously narrowing them down to identify the most effective way forward, one that would serve the best interests of both the real estate industry and, crucially, Canadian consumers.
Addressing Market Imbalances: The Rationale Behind the Policy
Real Estate Magazine: Apart from concerns CREA received from some boards, what tangible data or evidence indicated that “coming soon” and “exclusive listing” marketing tactics were becoming a significant issue?
Jill Oudil: I might hesitate to use the term “complaints” in all cases; perhaps “issues brought to our attention” is more accurate. The rapid proliferation and increasing availability of social media platforms played a significant role in highlighting what was perceived as an unfair advantage for some clients and, consequently, a disadvantage for others. When properties were exclusively marketed on social media or through private networks without being listed on MLS, it created an information asymmetry. Some buyers had access to these listings, while others, equally qualified, did not. This directly contradicted the principle of fair competition that is fundamental to a healthy real estate market.
Our core belief is that all potential buyers should have equal opportunities to access all properties available for sale. The intent behind exclusive listings should be reserved for genuinely unique circumstances where a client absolutely requires privacy or a specialized approach, such as confidential sales involving high-profile individuals or properties with specific, sensitive conditions. In such rare instances, public marketing might genuinely be undesirable. However, what we observed was a more widespread use of exclusive listings, often simply to circumvent the broader exposure of MLS. This trend was concerning because it could limit the seller’s potential to achieve the best possible price and terms by restricting access to the widest pool of motivated buyers.
Boards and associations were at the forefront of bringing these issues to our attention because they are directly responsible for managing complaints, upholding ethical standards, and ensuring a fair operating environment for their members and the public. Through our extensive consultation and engagement process with members, we worked diligently to develop a policy that not only reinforces high ethical standards but also guarantees fair competition and transparency for all parties involved in a real estate transaction. It’s about ensuring the integrity and perceived fairness of the entire system.
The Pandemic’s Influence and Enduring Principles of Exposure
Real Estate Magazine: It seemed there was an increase in exclusive listings during the pandemic, perhaps due to homeowners’ concerns about numerous visitors. I’m curious if this policy addresses a problem that might not be as prevalent now as it was during the height of the pandemic. Additionally, I’m interested in your thoughts on how the industry might respond to similar situations in the future and whether different strategies could be employed.
Jill Oudil: Firstly, I sincerely hope that we never again find ourselves in a situation as challenging and unprecedented as the recent pandemic. That being said, let’s address the premise regarding exclusive listings during that period. If there was a perception among homeowners that too many people would be touring their home, that’s precisely where the expertise and assistance of a realtor become paramount. A skilled realtor’s role is to ensure their clients are protected and comfortable, regardless of market conditions.
As a working realtor during that time, I can attest that it was a remarkably busy period. In fact, for sellers aiming to maximize their property’s value, bringing more qualified people through a home within a short timeframe was often highly beneficial. MLS, by its very nature, facilitates this widespread exposure and allows realtors to connect with a broad base of qualified buyers. While some clients indeed required more privacy, and others were less concerned, my unwavering focus was always on safeguarding my clients. This meant implementing stringent protocols: ensuring everyone wore masks, sanitized hands, and airing out properties between showings. The specific precautions during COVID necessitated a shift in approach, but the fundamental goal remained providing clients with comfort and protection.
I wouldn’t necessarily say that fewer people visited homes; rather, realtors made a much greater effort to pre-qualify buyers. This ensured that only genuinely interested and capable buyers entered a home, as opposed to the more casual “open house” scenarios where individuals might simply be “snooping around for decorating ideas.” The policy’s relevance extends beyond the pandemic, as its core principles – maximizing market exposure and ensuring fairness – are enduring benefits for sellers and buyers alike, regardless of external circumstances. It strengthens the cooperative system, which is crucial for overall market health.
National Standards vs. Local Autonomy: The CREA Mandate
Real Estate Magazine: Some boards and associations already have similar cooperation policies in place. Why was it deemed necessary for this to become a CREA policy rather than remaining a policy implemented solely by individual boards and associations?
Jill Oudil: While it’s true that some progressive boards and associations had already implemented their own versions of cooperation policies, making this a CREA-level policy serves several critical purposes. Firstly, it establishes a consistent minimum standard across the entire country. Our policies are designed to be implemented by boards and associations, and they retain the flexibility to make these standards stricter than the national minimums if their local markets warrant it. For instance, Quebec has long had rules quite similar to what we are now implementing nationally, and in Newfoundland, an MLS number is actually required even before a “for sale” sign can be placed on a property. These examples demonstrate that many local bodies already recognize the value of broad exposure.
Our overarching goal in setting this national minimum standard is two-fold: to provide a foundational level of protection for consumers nationwide, ensuring a consistent ethical framework wherever they are buying or selling property in Canada, and to proactively demonstrate to regulators that the real estate industry is committed to self-governance and the highest ethical practices. Unless there are truly exceptional, special circumstances that necessitate privacy, consumers should reasonably expect to see all properties available for sale in the market. As the national organization representing Realtors, it is our fundamental duty to identify major issues that impact our profession, safeguard the reputation of Realtors, and protect our clients’ best interests, all while upholding a robust framework of ethical standards. A national policy ensures this consistency and accountability.
Supporting Implementation and Upholding Enforcement
Real Estate Magazine: How will CREA provide support to boards in the successful implementation and diligent policing of the new Realtor Cooperation Policy?
Jill Oudil: In the structured environment of organized real estate, boards and associations already bear the primary obligation and responsibility for enforcing the Realtor Code. This is a fundamental aspect of their role, designed to maintain high ethical standards within the profession and, critically, to prioritize the needs and interests of consumers. The processes and mechanisms for enforcing the existing code are well-established. While each regional area may have its own nuanced practices for enforcing specific aspects of the code, a significant portion of their enforcement work is initiated when violations are reported or brought to their attention.
Therefore, from an operational perspective, the introduction of this new policy doesn’t fundamentally alter the existing enforcement framework for boards and associations. What it does, effectively, is add another potential violation to the comprehensive list of ethical standards they are already responsible for regularly upholding. CREA will, of course, provide guidance, educational materials, and support resources to ensure a smooth transition and consistent interpretation of the policy across all jurisdictions. However, the core infrastructure for enforcement is already robustly in place, and boards are well-equipped to integrate this new ethical obligation into their ongoing oversight activities. It’s an evolution, not a revolution, of their enforcement duties.
Overwhelming Support and Industry Consensus
Real Estate Magazine: Do you have a general idea of how many of the 75 boards voted in favour of the change, beyond just the percentage?
Jill Oudil: While I don’t have the precise count of individual boards that voted in favour—that specific breakdown isn’t typically made public—I can confidently reiterate the overwhelming percentage of votes that supported the amendment. The figure of nearly 83 percent in favour is, I believe, far more meaningful and representative of the industry’s consensus. This percentage directly reflects the proportion of Realtors whose boards and associations endorsed the policy. For context, larger boards, such as the Toronto Regional Real Estate Board (TRREB), represent a substantial segment of our membership, and their vote carries significant weight, potentially accounting for 30 to 40 percent of that overall percentage. So, while an exact number of boards isn’t available, the strong percentage clearly indicates widespread alignment among the vast majority of our members.
Real Estate Magazine: Were you surprised by the considerable level of support the amendment received?
Jill Oudil: I wouldn’t say I was entirely surprised, primarily because I was genuinely hoping for such a high level of support, and our extensive consultations indicated a strong prevailing sentiment. Throughout the development and consultation phases, it became increasingly evident that, as a collective, there was substantial backing for this amendment. The remarkable outcome of the vote truly demonstrates that the vast majority of our members are on the same page regarding the importance of this policy. This broad consensus is incredibly positive, as it will significantly facilitate enforcement efforts and foster a spirit of cooperation among all Realtors. It is truly heartening to witness such strong alignment from realtors, boards, and associations in supporting CREA’s initiatives that are designed to best serve our clients. While it’s natural for some individuals to have questions or even express opposition, I am profoundly grateful for the overwhelming and positive support we ultimately received.
Addressing Dissension: Representing the Industry’s Collective Voice
Real Estate Magazine: How would you respond to realtors who claim that the new policy does not accurately represent the opinions and feelings of the real estate industry?
Jill Oudil: While I understand that some realtors may feel this way, the reality is that the percentage of those who are genuinely upset with the policy represents a very small minority within our vast industry. This policy was meticulously crafted with a singular, overarching objective: to ensure fundamental fairness and equal opportunity for our clients and consumers. This principle of fairness is absolutely critical to the integrity and continued success of our industry.
By ensuring broad access to all listings, we empower both buyers and sellers. Buyers are better served because they have a comprehensive view of the market, allowing them to make truly informed decisions. Sellers, in turn, benefit from maximum exposure, which significantly increases their chances of attracting the best possible terms and price for their property. Furthermore, having a complete dataset of active listings enables realtors to provide more accurate and reliable assessments of property values, benefiting everyone involved in a transaction. While no policy can be absolutely perfect for every single individual, the collective benefits for the vast majority are undeniably substantial.
It’s a common phenomenon that a vocal minority can often dominate discussions, particularly on social media platforms. However, it’s important to remember that there are countless realtors across the country who are content with the policy and quietly continuing with their work, without feeling the need to engage in these public discussions. The overwhelming vote in favour speaks volumes about the true sentiment of the industry as a whole.
Unifying Rules: “Coming Soon” and “Exclusive” Listings
Real Estate Magazine: Did CREA consider creating separate rules for “coming soon” and “exclusive” listings? Some have flagged these as distinct issues. For example, one realtor described working with a client whose home requires significant work. In that case, a “coming soon” listing might generate interest and allow buyers to make informed decisions about the home’s state prior to it being fully ready.
Jill Oudil: I can assure you that the working group meticulously explored every conceivable scenario, including the very specific point you’ve raised about implementing separate rules for “coming soon” and traditional “exclusive” listings. There was no shortage of thorough investigation into every likely situation and potential nuance. And I would certainly acknowledge that the scenario you described—a “coming soon” listing for a property needing work—is a valid one that can occur in the market.
While it’s true that a “coming soon” approach can effectively generate preliminary interest for a home that requires preparation, there’s also a counter-argument: if such a listing is kept off MLS for weeks on end, actively searching buyers might have already found and committed to other homes by the time it officially hits the broader market. The consensus among all involved boards and associations, after extensive deliberation, was to adopt a single, unified set of rules that applies to both types of listings. The reasoning behind this decision was clear: a single set of rules is the cleanest, easiest to understand, and ultimately works best for ensuring consistency and fairness across the board. It simplifies compliance for realtors and ensures a more transparent market for consumers, regardless of the initial marketing approach.
Consumer Choice and Market Competition: A Broader Perspective
Real Estate Magazine: A few critics have flagged that this new policy limits consumer choice and could potentially be considered anti-competitive. How do you respond to these assertions?
Jill Oudil: We fundamentally view this policy not as a limitation, but as a crucial enhancement that helps all consumers have an equal and fair opportunity to see all available listings. This equitable access is paramount for a transparent and efficient real estate market. It’s vital to reiterate and ensure people understand that exclusive listings are still absolutely permitted under the new policy. The true, intended use of an exclusive listing, however, is for those very unusual circumstances where a client genuinely requires that their property not be publicly marketed for reasons of privacy or other specific sensitivities. These situations are, by definition, quite rare.
From a client-centric perspective, it is almost always in the seller’s best interest to ensure their listing receives the widest possible exposure to the largest pool of potential buyers. This broad visibility is the most effective way to attract competitive offers, ultimately securing the best terms and, crucially, the best possible price for the client. Furthermore, access to comprehensive market data—both for listing properties and for advising buyers—is essential for realtors to accurately assess property values and guide their clients effectively. The cooperative real estate system, with MLS at its heart, is precisely what makes this highest amount of information available to benefit all clients. It fosters healthy competition among buyers, which directly benefits sellers, and ensures a transparent environment for everyone.
Addressing Potential Loopholes and Future Implications
Real Estate Magazine: Did CREA consider potential loopholes that might be exploited? One example given was terminating an exclusive listing every three days to avoid having to put it on MLS.
Jill Oudil: We recognize that with any new policy, there will inevitably be a learning curve for the industry. While the working group diligently considered various scenarios, it’s challenging to anticipate every single creative interpretation or potential circumvention. For context, in the U.S., Realtors are required to list on MLS within just one day of public marketing, so our three-day window offers a bit more flexibility. Ultimately, our hope is that realtors across the country will embrace the fundamental reason behind this policy: doing what is unequivocally right for the cooperative system and working to keep the MLS strong and robust. The intent is clear, and we trust that the vast majority of our members will operate within the spirit of the policy, rather than actively seeking ways to undermine it. Enforcement, of course, will play a role in addressing any egregious attempts to exploit loopholes.
Real Estate Magazine: Another realtor raised a concern that the Realtor Cooperation Policy could inadvertently create opportunities for unlicensed companies to fill a void. Specifically, that these companies might step in where licensed realtors are now unable to trade exclusive properties in the way they did previously. Was this possibility considered, and what might be the potential impacts on the industry and consumers?
Jill Oudil: Indeed, there were extensive discussions throughout this entire process about a multitude of different possibilities and potential market shifts, including the emergence of unlicensed entities. However, our strong conviction remains that ultimately, realtors who are truly dedicated to serving their clients’ best interests and providing them with optimal opportunities will always gravitate towards a system that offers unparalleled advantages. That system is MLS.
The MLS system provides comprehensive access to virtually all available listings and, crucially, offers the most accurate and current pricing data for homes. This data is the bedrock of informed decision-making in real estate. As a realtor myself, I actively share my data with my colleagues because it ensures that we all have access to the same robust information, allowing us to accurately price homes and advise our clients effectively. It would be incredibly difficult for any licensed professional to willingly abandon a system that offers such profound benefits to our clients.
While predicting the future with absolute certainty is impossible, I have an unwavering belief in the intrinsic value of the MLS system. I personally would never want to operate without it, as it is absolutely essential for me to serve my clients effectively and fulfill my professional duties as a realtor. The MLS system provides a level of transparency, data integrity, and market reach that unlicensed alternatives simply cannot match, ultimately protecting consumers far more comprehensively.
Future Adaptability: Openness to Amendments
Real Estate Magazine: If significant issues or unintended consequences arise following implementation, is the board open to making further amendments to the Realtor Cooperation Policy?
Jill Oudil: We will certainly have to monitor the situation closely and see how the policy performs in practice. However, it’s important to understand that the current policy was not adopted with the intention of immediate or easy amendments. It was the result of a thorough, deliberate, and broadly supported process. Therefore, for us to revisit and potentially amend the policy, any issues or unintended consequences that arise would need to be genuinely significant and widespread. Our primary focus now is on successful implementation. At this juncture, the country has collectively spoken through the overwhelming vote, and this is the policy that we are firmly adopting and moving forward with.
A Realtor’s Deep-Seated Belief in MLS
Real Estate Magazine: As a seasoned realtor yourself, can you empathize with or understand some of the concerns others in the industry have raised?
Jill Oudil: Having been a realtor for 31 years, I can draw upon a wealth of personal experience. In all my years in the profession, I have never encountered a situation where it did not ultimately benefit my client to list their property on the MLS system. Now, I’m not asserting that such a rare circumstance could never occur, but I do believe that the true, legitimate need to intentionally withhold a property for sale from other realtors who have qualified clients actively looking to buy is extraordinarily rare. Such a scenario would represent a very niche situation indeed.
I understand and deeply appreciate the immense benefits that MLS provides. As a realtor, my natural inclination is always to leverage the MLS system to its fullest potential. Furthermore, I believe it’s crucial to contribute back to that system and share all the valuable information I have access to, and have collected, with my fellow realtors. This spirit of cooperation and information sharing is what empowers all of us to do our best work for our respective clients. It creates a robust, dynamic market where properties find their true value, and buyers find their ideal homes, all built on a foundation of shared knowledge and transparency.
A Unified Vision for the Future
Real Estate Magazine: Is there anything else you’d like to add regarding the new policy?
Jill Oudil: I am genuinely excited and deeply gratified by the immense level of support we received for this new policy. The fact that the vote in favour was so overwhelmingly high truly reinforces the collective commitment of our industry. It leaves no doubt in my mind that this is the unequivocally right policy to adopt as we move forward. It sets a clear, ethical path for real estate professionals across Canada, ensuring greater transparency, fairness, and ultimately, enhanced service and protection for all consumers in the marketplace.