Costs, Comparisons and 2026 Rules
Competition Bureau, CREA and realtor commission rules: what is changing for buyers and sellers
What the Competition Bureau is investigating about CREA's commission and cooperation rules, how it differs from the US NAR settlement, and what to ask your realtor in 2026.
In October 2024, the Competition Bureau obtained a Federal Court order to investigate two rules of the Canadian Real Estate Association (CREA): its rule on compensation for buyers' brokerages listed on the MLS system, and its REALTOR Cooperation Policy, which requires most residential listings to go on the MLS system within three days of public marketing. The Bureau said there was no conclusion of wrongdoing. Nothing in that investigation sets a commission rate, and commission in Canada was already negotiable. What it means in practice is that sellers and buyers should look closely at the split between the listing side and the buyer side, and negotiate both.
This guide explains what is being examined, how it compares with the US changes that made headlines in 2024, and the practical steps to take. It is part of Costs, Comparisons and 2026 Rules.
What the Competition Bureau is looking at
According to the Bureau's announcement of 3 October 2024, the investigation covers:
| Issue | The concern the Bureau described |
|---|---|
| Commission rules for cooperating brokerages | Whether rules on compensation offered to buyers' brokerages discourage those brokerages from competing on lower rates, or otherwise raise costs for buyers and sellers |
| REALTOR Cooperation Policy | Whether requiring listings to go on the MLS system makes it harder for alternative listing services to compete, reduces competition among realtors, or favours large brokerages over small ones |
The Bureau has used the courts to obtain records from CREA and asked the public for information. CREA has said it believes its rules are pro-competitive and pro-consumer. As of October 2026, check the Bureau's news page for whether the investigation has led to an application before the Competition Tribunal, a consent agreement, or rule changes.
The background: two earlier rounds
This is not the first time the Bureau has examined real estate rules:
- 2010 consent agreement with CREA. CREA amended its MLS rules so that the services a realtor provides are a matter for the realtor and the client to agree. This opened the door to flat-fee "mere posting" listings, where a seller pays a fixed fee to appear on the MLS system and handles the rest.
- Toronto Real Estate Board case. In 2016 the Competition Tribunal ruled for the Bureau against TREB over restrictions on access to historical sales data through virtual office websites. The decision was upheld on appeal, and sold-price data became widely available online in the Toronto area.
Both made it easier to sell without a traditional full-service package, which is why flat-fee and reduced-commission options exist today.
How Canada differs from the US NAR settlement
In 2024, the US National Association of REALTORS settled class actions and changed its MLS rules: offers of compensation to buyer agents can no longer be advertised on NAR-affiliated MLS systems, and buyer agents must sign written agreements with buyers before touring homes. That settlement does not apply in Canada. Canadian rules come from:
- provincial real estate laws and regulators (for example TRESA and RECO in Ontario, BCFSA in BC, the Real Estate Brokerage Act and OACIQ in Quebec);
- CREA's REALTOR Code and MLS rules, which apply to its members; and
- local real estate boards' rules of cooperation.
Several provinces already require written buyer agreements or disclosure: Ontario since TRESA took effect on 1 December 2023, BC through BCFSA disclosure rules, and Quebec through the brokerage contract forms. Commission-related class actions have also been filed in Canada; they do not change what you pay unless and until a court-approved settlement or rule change says so.
What it means for a seller in 2026
- Negotiate the two parts separately. Ask the listing brokerage what it will keep and what it proposes to offer the buyer's brokerage. A lower total can come from either side.
- Ask whether the buyer-side offer is visible to buyers. Practices differ between boards and listing platforms. Buyers increasingly ask, so a transparent offer can help.
- Understand the MLS requirement. Under the Cooperation Policy, if your listing agent markets the home publicly, it generally must go on the MLS system within three days. If you want an off-MLS sale, the policy requires your written instruction and no public marketing.
- Get it in writing. Use the commission calculator to turn every option into dollars including GST/HST.
Illustrative example. On a $1,100,000 Toronto sale, a 2.5% listing side plus 2.5% buyer side is 5% = $55,000, plus 13% HST = $62,150. Negotiating 2% + 2% gives $44,000 + $5,720 = $49,720, a saving of $12,430. Whether the lower buyer-side offer costs showings depends on the market; discuss it with your agent.
What it means for a buyer in 2026
- Read your buyer representation agreement: what fee does your brokerage expect, and what happens if a listing offers less? In Ontario, TRESA requires this agreement to be in writing.
- Ask your agent to tell you what the seller is offering on each home you consider. Some buyers negotiate a rebate of part of the buyer-side commission; check that your agreement and provincial rules allow it, and that your lender knows.
- If the listing offers nothing (private sale or some flat-fee listings), include the fee in your offer, for example by asking the seller to pay it as a condition.
Frequently asked questions
Did the Competition Bureau lower realtor commission in Canada?
No. The Bureau investigates conduct under the Competition Act; it does not set fees. Commission remains a matter of agreement between clients and brokerages.
Do I still have to use the MLS system to sell?
No. You can sell privately or with a brokerage off the MLS system. If a CREA member markets your listing publicly, the Cooperation Policy generally requires an MLS listing within three days unless you instruct otherwise in writing.
Are buyer agents in Canada free?
They are usually paid from the seller's commission, but their services are not free: the cost is built into the price and the agreement may make you liable for a shortfall.
Where can I follow the investigation?
On the Competition Bureau's website, under news releases, and on CREA's news page.
Sources
- Competition Bureau Canada — investigation into CREA policies, 2010 agreement, TREB case
- The Canadian Real Estate Association — REALTOR Code and Cooperation Policy
- Real Estate Council of Ontario — TRESA and buyer agreements
- BC Financial Services Authority — disclosure of representation and remuneration
- OACIQ — brokerage contracts in Quebec
