In a significant development that has reverberated throughout Alberta’s real estate community, members of the Calgary Real Estate Board (CREB) have emphatically rejected a proposal to dissolve their long-standing organization and merge with the Alberta Real Estate Association (AREA). This decision, which came after an intense period of deliberation and member engagement, underscores the complex dynamics and deep-seated loyalties within the real estate profession.
The vote, held on a Wednesday night, saw 1,526 of CREB’s approximately 7,000 members participate, casting their ballots either virtually or in person. The proposed consolidation required a two-thirds majority to pass, but the outcome revealed a clear opposition, with 53 percent of participating members voting against the merger. This result has left many reflecting on the reasons behind the rejection and the future trajectory of real estate representation in Calgary and across Alberta.
Understanding the Proposed CREB-AREA Merger
The initiative for this proposed consolidation originated from CREB itself, gaining initial approval in early November. Both CREB and AREA had cited extensive member research supporting the idea of a streamlined membership structure. The vision was to create a unified, more efficient organization that could better serve the interests of real estate professionals across the province, reducing redundancies and maximizing resources.
The proponents of the merger argued that combining forces would lead to enhanced advocacy, improved services, and a more cohesive voice for realtors in Alberta. With the real estate landscape constantly evolving, the concept of a single, powerful provincial entity seemed, on paper, to offer numerous strategic advantages. It was posited that two strong organizations, by joining forces, could achieve more together than by operating independently, potentially leading to greater influence on policy, better professional development opportunities, and a more robust support system for members.
CREB Leadership Expresses Surprise at Vote Outcome
Alan Tennant, CEO of CREB, admitted his surprise at the vote’s outcome. He highlighted the extensive effort made by CREB and AREA leadership to engage with members and address their concerns leading up to the vote. “We asked the members a really hard question, and they considered it. They were thoughtful. We had lots of questions,” Tennant remarked, detailing numerous sessions, calls, emails, and texts exchanged with over a thousand members. This period of intense dialogue suggested a high level of engagement and critical thinking from the membership.
Tennant emphasized the significant learning process that occurred between the staff and leadership teams of both CREB and AREA. Despite the rejection, he believes there are valuable insights to be gleaned from the feedback. “Really, there was a lot of learning between AREA and CREB and our staff teams and our leadership teams, and I think we need to sit and think (about) what we heard and saw there and also from what we heard from our members,” he stated. He reiterated that both organizations are strong, and the premise of the merger was to find an even “better path” through synergy. The focus now, he suggested, would be on identifying and building upon these potential synergies, even without a full merger.
Members’ Deep Consideration and Key Concerns
The decision to merge with AREA carried significant implications for CREB members, particularly the term ‘dissolution’ which Tennant noted “causes people to think hard about their professional life, in a different format and without CREB.” This sentiment touched upon a core aspect of professional identity and affiliation that many members hold dear. A tangible concern that emerged strongly during discussions was the fate of CREB’s long-standing office building in northeast Calgary. Had the merger been approved, the building would have been sold.
Tennant acknowledged this as a significant point of contention for many members. He made a strong personal commitment, stating, “I can tell you for as long as I’m CEO this building is not being sold. It’s not my decision, but I’m not making that recommendation to the board. I’ve made that clear.” This reassurance aimed to address a fundamental concern that resonated deeply with the membership, highlighting the emotional and historical attachment many feel towards the physical representation of their organization.
AREA CEO Unsurprised, Highlighting Member Concerns
In contrast to Tennant’s surprise, AREA CEO Brad Mitchell was not caught off guard by the vote’s outcome. “The members spoke, and there were lots of concerns expressed in the last week. And their choice,” he commented. Mitchell noted that while no single concern appeared “paramount,” the issue of selling the CREB building was frequently raised. “A lot of members wanted to keep the building,” he confirmed, underscoring the emotional connection members have to their local board’s assets and history.
Mitchell also pointed out the relatively low voter turnout, observing that only 21 percent of eligible members participated. “This wasn’t an AREA vote . . . This was brought to us by the CREB board, and it’s really a CREB board decision whether they bring it forward again or not…The members had a chance to speak, but only (21 percent) of them voted. I was a little bit disappointed in the turnout. But it is what it is,” he added, suggesting that while the “no” vote was decisive among those who participated, a vast majority of members did not cast a ballot.
“Realtors Tend to Be Quite Proprietary”: Insights from the Field
Corinne Lyall, owner/broker with Royal LePage Benchmark in Calgary, provided valuable insights into the mindset of realtors, stating, “Realtors tend to be quite proprietary.” She elaborated that this proprietary feeling extends to organizations like the Calgary Real Estate Board, even if a merger might appear to be the most “rational decision” from a strategic standpoint. Lyall suggested that if CREB leadership initiated this proposal, there was likely a sound underlying reason, potentially financial.
Lyall’s perspective highlights the blend of rational and emotional factors at play. “Some of the longer-term realtors in our business have a sense of attachment to the Calgary Real Estate Board, whether it’s common sense or if it’s probably more emotional,” she explained. This emotional bond, particularly among veteran members, can be a powerful force in organizational decisions, often outweighing purely logistical or financial arguments for change.
Analyzing Member Engagement: Apathy or Assumption?
The low voter turnout also prompted Lyall to question the level of member engagement. With only 1,500 people voting out of 7,000, she deduced, “So you’ve got 5,500 people who are apathetic or …too busy to vote, which means they don’t care.” This stark assessment suggests a significant portion of the membership either lacked strong feelings on the matter or simply assumed the outcome. Lyall speculated, “My guess is there’s a lot of Yes people out there (who) went ‘oh, I guess I should have voted. I assumed that it would just go through.'” This phenomenon, where those in favor might be less motivated to vote than those opposed, can often sway the results of such referendums.
Lyall herself was in favor of the merger, believing that CREB leadership would only pursue such a path for good reason, possibly financial. “I believe a lot of this was financially driven. I don’t believe they have the revenue to sustain their current organization,” she asserted, suggesting that the rejection might force CREB to “regroup and figure out how they’re going to create an organization that is financially feasible, which probably means they’re going to have to offload some of their services anyway.”
However, this financial narrative was swiftly rebutted by CREB leadership. Alan Tennant, in an email, stated, “The suggestion that the merger was financially driven is not accurate and encourages a concerning narrative. The leadership of both organizations has publicly stated that both organizations are financially strong and well-run.” CREB Chair Christian Twomey further clarified, “With AREA, we jointly presented a solid case for the merger and established that the organizations could do more for our members together rather than competing… If the suggestion is that we’re going to significantly erode the value we provide members or even close up shop, think again.” These counter-arguments emphasize that the merger proposal was driven by a vision of enhanced value and collaboration, not financial distress.
CREB to Review Initiative and Chart a New Course
Mary-Ann Mears, a broker with Sotheby’s International Realty Canada in Calgary, expressed both surprise and encouragement regarding the turnout. While keeping her personal vote private, she surmised from the thin margins that “there are CREB members who accept the collaboration on the one hand, while on the other hand, there are those who have unanswered questions and voted no.” This indicates a divided, yet engaged, membership base.
In the wake of the decision, CREB has confirmed its intention to thoroughly review the initiative. This process will involve reflecting on the strong statements and feedback received from members, focusing on what they value most from the organization and their ideas for the future. Christian Twomey, CREB’s Chair, issued a statement outlining the next steps: “We’ll be exploring why the consolidation plan was defeated to learn if there is an appetite for (the) continued pursuit of a different membership structure, or perhaps refocus in a new direction.” This suggests a willingness to adapt and explore alternative strategies for enhancing member value and organizational sustainability.
One undeniably positive outcome, according to Twomey, is the unprecedented level of member engagement this process generated. “CREB has never seen member engagement at this level,” he noted. This surge in participation, regardless of the final vote, provides a valuable opportunity for the organization to better understand its members’ priorities and shape its future direction in a way that truly resonates with their needs and aspirations.
Conclusion: The Future of Real Estate Representation in Alberta
The rejection of the CREB-AREA merger marks a pivotal moment for the Calgary Real Estate Board and the broader Alberta real estate landscape. While the proposed consolidation aimed to streamline operations and enhance advocacy, the vote underscored the strong emotional ties, proprietary feelings, and specific concerns of CREB members. The debate over the organization’s financial health versus its strategic vision for improved member services also played a significant role in the discussions.
Moving forward, CREB is committed to a period of introspection and strategic review. The challenge now lies in harnessing the unprecedented level of member engagement seen during this process to forge a path that strengthens the organization, addresses member concerns, and continues to provide robust support to Calgary’s real estate professionals. Whether this involves exploring new models of collaboration, refining existing services, or charting an entirely new course, the voice of the members will undoubtedly be central to CREB’s future endeavors, ensuring that it remains a vital and valued institution within the Canadian real estate industry.