MREB Leaders Past and Present Challenge Cornerstone Amalgamation

Editor’s note: On June 14, 2024, REM received the following information from Tehreem Kamal: “More than 10 per cent of MREB’s members have signed a petition for an SGM to be called to rescind the vote to amalgamate with WRAR, RAHB and SDREB. MREB is holding the SGM for its members on June 26.”

Navigating Change: Unforeseen Challenges in the Mississauga Real Estate Board Amalgamation

The real estate landscape is perpetually in motion, and for members of the Mississauga Real Estate Board (MREB), recent months have been marked by the anticipated amalgamation into the new Cornerstone Association of Realtors (Cornerstone), set for July 1. This significant transition, however, has not been without its complexities. What began as a strategic move to foster greater collaboration and efficiency among Ontario real estate boards has, since January’s membership vote, unearthed a series of major concerns that warrant immediate attention and transparent discussion.

This article delves into the intricate details of the proposed amalgamation, exploring the original vision, the evolving market dynamics, and the critical issues raised by MREB members and past leaders. As the deadline approaches, a closer look at these challenges reveals a growing demand for reassessment and a clear path forward for the future of Mississauga’s real estate professionals.

The Genesis of Cornerstone: A Vision for Amalgamation

Uniting Regional Real Estate Strengths

The journey towards Cornerstone Association of Realtors began in October 2023. At that time, a landmark announcement confirmed that the Realtors Association of Hamilton-Burlington (RAHB), the Waterloo Region Association of Realtors (WRAR), the Simcoe & District Real Estate Board (SDREB), and the Mississauga Real Estate Board (MREB) had signed a letter of intent. This agreement signified a collective ambition to merge these four prominent organizations into a single, more powerful entity. The ultimate goal was to streamline operations, enhance member services, and amplify the collective voice of Realtors across a broader geographic span in Ontario.

The amalgamation received a pivotal endorsement on January 31 of this year, when MREB members cast their votes to formally approve the merger with RAHB, WRAR, and SDREB. This approval paved the way for the creation of Cornerstone Association of Realtors, slated to commence operations on July 1, 2024. The overwhelming sentiment at the time was one of optimism, believing that a unified front would bring about numerous benefits for real estate professionals.

Emerging Concerns: A Voice from the Ranks

However, as the amalgamation date draws near, a wave of apprehension has begun to ripple through the MREB community. Tehreem Kamal, a respected broker with Royal LePage Real Estate Services Ltd., Brokerage, and a past president of MREB (serving until 2019), has emerged as a key voice articulating these concerns. Kamal, who became aware of the mounting issues in May at an MREB event, embarked on a mission to uncover the facts behind the rapid changes and the unease among her peers.

Her investigations led her to question MREB’s board of directors and president, culminating in a meeting of past presidents on May 8. During this meeting, critical questions were posed, including the whereabouts of the strategic plan guiding this monumental transition. The response, according to Kamal, suggested a reliance on the status quo and a directive to “trust the process.” This lack of detailed information and the call for blind faith only served to deepen the anxieties of many members and past presidents, highlighting a perceived deficit in transparency and clear strategic direction.

The Original Vision for Amalgamation: A Unified MLS System and Member Benefits

The Promise of One Board, One MLS

The initial concept behind the amalgamation was ambitious and held significant promise for MREB members. The two immediate past presidents of MREB, acting on behalf of their leadership positions and with the unanimous consent of the board, were instrumental in engaging in early discussions about the merger. Kamal acknowledges the extensive work and resources—both financial and human—that MREB has invested in the planning and feasibility studies for this grand vision.

At its core, the original vision centered on creating a single, cohesive entity with a unified MLS system: Information Technology Systems Ontario (ITSO)’s Matrix. This system was already in use by several key boards, including MREB, the Oakville, Milton and District Real Estate Board (OMDREB), the London and St.Thomas Association of Realtors (LSTAR), the Niagara Association of Realtors (NAR), and WRAR. The idea was to bring together boards stretching from Mississauga to London and Niagara under one umbrella, fostering better representation, enhanced collaboration, and, crucially, a simplified and more affordable experience for members.

Alleviating the Burden of Multiple Fees

Tehreem Kamal succinctly articulated the primary benefit anticipated by Realtors: relief from the burden of excessive fees. “The main thing is a member on the street is tired of paying too much for too many boards,” she explained. Realtors frequently grapple with the necessity of paying multiple fees across Ontario to access various systems or MLS listings, particularly when serving clients in different regions. Matrix, as a single, comprehensive MLS system serving numerous boards, offered a compelling solution. It promised unparalleled convenience, allowing agents to easily access all necessary data and archives, thereby enhancing their ability to serve clients efficiently and comprehensively.

This vision of a unified system, reduced fees, and seamless data access was a powerful driver behind the initial enthusiasm for the amalgamation. It represented a tangible benefit that directly addressed a long-standing pain point for real estate professionals operating in Ontario’s diverse and expansive market.

The Pivotal MLS System Decision Extension and Its Ramifications

A Shifting Landscape and Extended Deadlines

The initial three-year term of ITSO’s MLS services agreement was set to expire on December 31, 2024. Under normal circumstances, any association or board opting not to renew would have needed to provide ITSO with six months’ notice, setting the deadline at July 1, 2024. This date aligned critically with the proposed amalgamation, suggesting a smooth transition for the merging boards into a unified Matrix system.

However, the rapidly evolving MLS landscape prompted many of ITSO’s member groups to express a need for more time to evaluate their options – whether to continue with ITSO Matrix or explore alternative providers. In response to this widespread sentiment, ITSO’s board of directors announced in February a crucial extension: the deadline for non-renewal notice was pushed back by three months, to September 30, 2024.

This extension, while seemingly a minor procedural change, carries significant weight for the MREB amalgamation. Tom Lebour, a broker at Royal LePage Real Estate Services Ltd., Brokerage, and a past president of both MREB and the Toronto Real Estate Board, underscored its importance. He noted that while MREB members approved the amalgamation mandate four months prior, “the MLS landscape has changed quickly and several boards have switched systems” since then. Lebour views the extended deadline as a critical window, providing boards with additional time—at least three months operating under the status quo—to thoroughly reassess their positions, scrutinize new developments, and make more informed decisions regarding their MLS system allegiances. This newfound flexibility inadvertently casts a shadow of uncertainty over the initial premise of the amalgamation.

Missing Pieces and a Fundamentally Changed Vision

Unanswered Questions and Shifting Alliances

While Tehreem Kamal commends the original vision for its good intentions and faith, she identifies crucial gaps in its execution and unforeseen changes that have fundamentally altered its premise. Early in the process, MREB’s two immediate past presidents raised concerns in a letter and email, seeking clarity on vital aspects such as the future organizational chart, the CEO’s identity, the fate of MREB’s significant membership funds, and whether all contracts were being vetted by legal counsel. These questions, central to any major corporate restructuring, appear to remain largely unanswered.

Kamal herself, as an MREB member, has formally requested meeting summaries or minutes from October to the present, seeking to understand the precise changes and decision-making processes that have transpired. This lack of transparent documentation fuels a growing suspicion that the current path deviates significantly from what members originally approved.

Compounding these concerns is the dramatic shift in the participating boards. The initial vision relied on a broader coalition of boards. However, since the amalgamation process began, LSTAR and NAR have opted to join a different service provider. Furthermore, OMDREB is reportedly considering a departure from Matrix to another system, potentially aligning with a network of 80,000 members across Ontario. Kamal highlights the critical principle of “power in numbers.” She questions the rationale of creating a siloed group of perhaps 8,000 members, predominantly comprising the remaining four Cornerstone boards, when the strength of membership and access to most GTA listings could lie with a single MLS provider boasting 80,000 members.

While acknowledging that these individual board decisions were likely made with their members’ best interests at heart, Kamal points out that such changes irrevocably alter the original, expansive vision. What began as a broad amalgamation of multiple boards with a unified MLS system has now narrowed significantly. Cornerstone, as it stands today, is essentially reduced to four entities: MREB, RAHB, WRAR, and SDREB. This diminished scope raises serious questions about whether the proposed benefits of the original, larger amalgamation can still be realized by this smaller collective.

Critical Concerns: Fragmentation, Diminished Voice, and Financial Uncertainty

The Resurfacing Problem of Multiple Board Fees

The core promise of the original amalgamation was to alleviate the burden of multiple board memberships and associated fees for Realtors. However, Tehreem Kamal and many other members now fear that the current, fragmented vision for Cornerstone will inadvertently reintroduce this very problem. With a smaller group of amalgamated boards, the intended power and benefits—particularly regarding widespread MLS access—are likely to be significantly diminished.

Kamal provides practical examples: “I have personally listed and sold properties in London, and so have colleagues in my office — we go all over the GTA, wherever the client takes us.” She further illustrates, “Likewise, many in my office work and live in Niagara, and they work here (in Mississauga), Oakville and Milton, too. For them, it’s going to be the same problem.” The unfortunate reality is that the proposed solution, in its current altered form, may no longer be relevant or realistic for the working Realtor who operates across various jurisdictions. This makes access to comprehensive data and archives across multiple regions not just convenient, but essential, and the current plan appears to fall short of this necessity.

A Weaker Voice: Misguided Advocacy Claims

Another profound concern revolves around the assertion made to Mississauga’s membership that amalgamation will create a “stronger voice” within the industry at large, particularly at provincial and national assemblies like the Ontario Real Estate Association (OREA). Kamal directly refutes this claim, stating, “It’s actually the opposite.” She explains that individually, the boards slated for amalgamation contribute a certain number of votes to the OREA assembly. However, when these boards merge, a different OREA bylaw formula for vote allocation kicks in, which, paradoxically, reduces their collective voting power. “How are we a stronger voice if we don’t have the same vote count? This was my question at that (May) president’s meeting with the board,” Kamal recalls.

The OREA bylaw dictates that a member board’s vote allocation is calculated based on its individual membership count. Consequently, a newly amalgamated member board’s vote would be based on its combined membership, applied to the same formula, which often results in a proportionally smaller overall share of votes compared to the sum of individual board votes. This technical detail significantly undermines the “stronger voice” argument, posing a critical setback for advocacy efforts.

The Question of MREB’s Financial Assets

Perhaps one of the most tangible and immediate concerns for MREB members is the fate of the board’s substantial financial assets. Kamal and others are questioning what happens to MREB’s money once July 1 arrives. “More than $2 million of membership money will be folded over to (Cornerstone). How will accessing it be handled if we need to get something done in Mississauga in the coming months to, let’s say, do any advocacy work?” she asks.

Tom Lebour echoes this financial apprehension, expressing concern that the funds will become significantly harder to access once they are absorbed into the new, larger organization. He notes that while the “2.5 million that will be thrown into the (Cornerstone) pot wasn’t hidden, it wasn’t pointed out” sufficiently. This lack of clarity regarding the future control and accessibility of MREB’s hard-earned funds represents a serious point of contention. The financial health and autonomy of MREB, a 70-year-old organization, are perceived to be at risk through this rapid absorption.

These concerns, Kamal states, have been raised repeatedly without clear answers. This opacity fuels the sentiment that the amalgamation is being rushed. “All over the world, whether it’s real estate or a multinational company, organizations come together. However, they do years and years of feasibility reports, studies and what-if scenarios,” she argues. The rapid timeline—from October 2023 to July 2024—for merging an organization that has sustained itself for seven decades is seen as a reckless pace, neglecting crucial due diligence and stakeholder consultation.

Advocacy at a Crossroads: MREB’s Role in a Changing Political Landscape

Absent from Local Politics: A Red Flag

A critical aspect of any real estate board’s mandate is robust local advocacy, particularly concerning housing policy and market conditions. Tehreem Kamal points to the ongoing mayoral by-election in Mississauga as a prime example of MREB’s historical engagement. Historically, during such pivotal times, MREB has actively engaged with city council, fostering government relations and advocating for the interests of its members and the broader housing consumer base. However, Kamal observes a stark absence of MREB’s presence in the current electoral discourse. “This is one of the most important key events in Mississauga. Everybody’s talking about housing and MREB is the pillar, the stakeholder that represents people directly connected with housing — yet, they’re hugely absent in this, which is a huge red flag,” she warns.

Tom Lebour reinforces this concern, recalling an incident in 2021 when a rumour about implementing a land transfer tax surfaced. MREB, working in conjunction with OREA, played a crucial role in preventing its materialization. Lebour now questions whether Cornerstone, as a larger, more diversified entity, will possess the same effectiveness and dedication to addressing specific local issues, which are inherently vital to its constituent members.

Priorities in Question: Events vs. Advocacy

Kamal, seeking clarification on MREB’s shifting focus, directly inquired via email about the board’s positioning regarding the mayoral debate, outreach to candidates, and the potential reintroduction of a municipal land transfer tax—a contentious issue that Mississauga has historically defended against. Lebour points out that one of the leading mayoral candidates has already hinted at revisiting such a tax, making MREB’s strong government relations committee for local advocacy all the more crucial.

The response Kamal received, however, suggested that the board was preoccupied with organizing events such as a golf tournament and receptions. While acknowledging the value of well-intended charity events, Kamal adamantly stresses that MREB’s primary responsibility is “to protect the interest of the consumer on the street pertaining to housing.” She underscores the urgency: “We cannot take our eyes off the ball. If this amalgamation or anything else is detracting from what MREB has actually stood for in the past and should still be standing for, there is something seriously wrong.” This perceived shift in priorities, away from critical local advocacy towards social events, is seen by many as a troubling indication of a board losing sight of its fundamental mission amidst the amalgamation process.

Transparency and Accountability: A Duty to Partner Boards

Informing the Amalgamation Partners

Beyond the internal disquiet within MREB, Tehreem Kamal raises a crucial point about the ethical obligations towards the other amalgamating boards: RAHB, WRAR, and SDREB. She questions whether these partners are fully aware of the evolving sentiment within MREB’s membership. “Do they understand that MREB’s membership is not on the same page as they were in January and that they’re probably moving towards an amalgamation with potential turbulence? They have a duty of care to their membership, so who’s keeping them in the loop?” Kamal asks, highlighting a critical gap in communication.

Kamal asserts that MREB has a responsibility to be completely transparent with all its partners, not just the individuals directly involved in the amalgamation task force. Leading other boards into a merger when a key partner, MREB, is experiencing significant internal reservations would be a disservice to all involved. She argues that even directors not directly on the task force should be informed and, in turn, convey to their respective brokerages that “We’re heading into an amalgamation where one of the key partners coming in with possibly 2,200 members and resources of more than $2.5 million is probably having second thoughts.” This level of transparency is essential to ensure that all parties enter the Cornerstone Association with full awareness and commitment, mitigating potential future conflicts and ensuring the stability of the new entity.

The Call for a Special General Meeting (SGM): Rescinding the Vote

A Collective Demand for Reassessment

The growing concerns within MREB have culminated in a formal request for a Special General Meeting (SGM). Tehreem Kamal articulates the collective sentiment: “Every member that I’ve spoken to, every past president that has discussed, exchanged ideas and brainstormed — we are all for collaboration, but not for creating silos of the Mississauga board and others. This is the challenge and why membership has requested MREB to call an SGM.” The underlying principle is not anti-amalgamation itself, but rather a demand for a merger that is genuinely beneficial and reflective of the current industry realities.

In May, a petition was circulated among past MREB presidents and industry members, collecting signatures to formally request an SGM. An email, obtained by REM and signed by past presidents John Cassan and Michael Mills, unequivocally expressed these concerns. The email urged MREB to “pause the amalgamation and call for a meeting of the membership,” cautioning that “It is foolhardy, risky and downright reckless to proceed with the amalgamation.”

Cassan and Mills powerfully invoked a past error, recalling the short-sighted decision in the 1980s to sell MREB’s MLS system to the Toronto board, despite membership concerns. They lamented, “This short-sighted decision cost us dearly. It took us almost four decades to recover from this mistake, making our board a successful enterprise and here we are again.” Their stark warning is that MREB is on the verge of repeating a “terrible mistake which will cost us dearly,” underscoring the gravity of their plea.

Following this, on May 28, ten past presidents of MREB, including Cassan and Mills, signed a formal letter requesting an SGM exclusively for members within the next ten days. The letter explicitly advised the board “not to be hasty in signing any contracts without satisfying members’ concerns at the proposed SGM.”

While acknowledging MREB’s repeated assertion that “the membership voted yes in January to amalgamate” is factually correct, Kamal emphasizes a crucial nuance: “The information the membership was provided in January is not completely relevant anymore. It has changed drastically.” She argues that, given the dramatic shifts in the real estate industry and the proposed amalgamation’s scope, “The membership, in view of today’s reality, would like to rescind the vote from January 31, have the board put a hard stop on anything (relating) to this proposed amalgamation and genuinely take stock of what’s happening in the real estate industry at large that will benefit our members.” From this re-evaluation, she contends, future options can be explored with greater clarity and confidence.

MREB’s Official Response and the Path Forward

Standing by the Mandate

As of the time of writing, MREB had not formally accepted the SGM request, nor had it provided a direct response to the email from past presidents Cassan and Mills. However, REM received an official statement from Rita Asadorian, Chair of MREB, outlining the board’s stance.

Asadorian reiterated the board’s commitment to upholding the “clear and decisive mandate from our members.” She acknowledged the submission of a petition for an SGM on May 28, signed by ten past presidents, but stated that it “did not meet the 10 per cent member threshold required by the Ontario Not-for-Profit Corporations Act.” This legal technicality, according to MREB, invalidated the formal request for a special meeting.

Furthermore, Asadorian affirmed MREB’s proactive efforts to address concerns. She noted that the MREB board of directors hosted delegates from partner boards in a productive meeting to discuss and resolve issues, concluding with a “positive consensus supporting the amalgamation.” A similar session was held with past presidents, providing comprehensive information and addressing their questions, which also reportedly ended with a positive consensus.

A United Future?

Asadorian acknowledged that “significant decisions can generate some discontent,” but maintained that MREB has “consistently addressed the same concerns and must now proceed with the mandate provided by our members’ unanimous vote.” She also extended an invitation for ongoing dialogue, stating, “We remain open to all questions and concerns, which can be directed to me at any time.”

Her statement concluded with a definitive declaration: all four associations involved are “eager to demonstrate the benefits of our united efforts,” confirming that the amalgamation documents have been formally filed with the Ontario government, and the process will indeed move forward as planned. This firm stance by MREB suggests an unwillingness to pause the amalgamation, despite the expressed concerns and the call for re-evaluation from a significant portion of its leadership and membership.

The coming weeks will undoubtedly be crucial for MREB members, as they navigate the culmination of this amalgamation and the implications of their board’s decision to proceed. The debate over the true benefits, the clarity of vision, and the effectiveness of advocacy in the new Cornerstone Association of Realtors will continue to unfold, shaping the future of real estate professionals in Mississauga and beyond.