Canada’s largest multiple listing service (MLS) platform, Realtor.ca was a not-for-profit organization for years. Not anymore. On October 23, the Canadian Real Estate Association (CREA), at the 2024 Special General Meeting, voted to turn the company into a for-profit wholly-owned taxable subsidiary of CREA.
As per a press release rolled out by CREA, the decision is to ensure “long-term growth and sustainability” and deliver “value to REALTORS® and consumers alike.”
Currently, Realtor.ca claims the lion’s share, 50% of the market that it operates in. The site will be 100% owned by REALTORS® through their membership with CREA. There were a number of restrictions imposed on the site due to its not-for-profit structure. However, with its new for-profit structure, the site will be able to explore new income streams.
As per James Mabey, Chair of CREA, the transition to for-profit is going to bear fruit for the company. On the day the decision was made, he said, “Today’s vote is about securing the future of REALTOR.ca. Every day, REALTORS® proudly serves clients in every corner of the country. This decision will help ensure REALTOR.ca continues to meet the needs and expectations of today’s property owners, buyers, sellers, and renters.”
David Langlois, a realtor from BC, has expressed a bit of doubt over the decision. He said, “I hope it works out, I reallydo. My concern is that right now Realtor.ca is one of one in its category – entirely consumer-focused and not revenue-motivated. Realtor.ca’s success in the larger prop-tech space, I believe, is because of its unique nature. Spinning it into a taxable entity that is now revenue-driven, by definition, makes it not one of one anymore, but one of many. It puts it into direct competition with other players that have very deep pockets and a technological head start.”
Whether the move will be helpful or not, only time will tell! But, one thing is certain, the team must have thought long and hard before making such a big decision.
