festival condos release date.Canadian government pricing helps real estate agents. Most of the discussion about the Canadian real estate market revolves around the rapid rise in house prices, but what is often overlooked is that the commission paid by Canadians to buy and sell houses is also increasing at the same time.Please Visit: festival condos release date to Get Your VVIP Registration Today!
For example, the average commission earned by an agency representing buyers in the Greater Toronto area in 2005 was about C $8795, while by December 2021, the commission earned by the buyer’s agency was about C $36230, quadrupling in 16 years, said Dr. Bavik, a renowned economist in the real estate industry.
In terms of time, Canada’s median household income rose by only 14 per cent between 2005 and 2019, after adjusting for inflation.
The discrepancy is one of the main points raised in a recent Sunderland lawsuit by Toronto residents, who accused the Canadian real estate market of price manipulation and anti-competitive behaviour.
In the Greater Toronto area, the average real estate commission is more than C $62000 before tax.
On April 9, 2021, Toronto residents filed a class action lawsuit on behalf of Mark Sunderland claiming that some of Canada’s largest brokerage firms, including ReMax, Century 21 and IproRealty Ltd. And so on, collude with the Canadian Real Estate Association and the Toronto District Real Estate Board to maintain, raise or control house prices. To serve as a buyer’s broker in the Greater Toronto area. ”
In Canada, the commission structure for housing transactions varies from region to region. In Alberta and British Columbia, the commission is 7 per cent of the first C $100000 of the selling price and 3 per cent of the balance. In other parts of Canada, the commission is between 4% and 5%.
Although the seller pays the full commission, it is usually apportioned between the brokerage company representing the seller and the brokerage firm representing the buyer.
The Toronto resident representative Mark Sunderland’s lawsuit alleges that the buyer’s brokerage rule agreement between the Toronto Residential Real Estate Board and the Canadian Real Estate Association forces sellers of residential real estate listed on multiple listing services (MLS) to pay commissions.
This arrangement hinders market competition because it forces sellers to pay fees that they should not have to pay without this agreement.
“this is an open conspiracy,” said Garth Myers, a partner at law firm Kalloghlian Myers LLP.
The law firm filed a lawsuit on behalf of Sunderland and all those who have sold houses in GTA since 2010. .
Barwick, an economist who specializes in the commission structure of the real estate industry, says those who are not provided with a standard commission rate can feel the impact of this price manipulation.
The average selling price of a house in Canada is C $746000, and the total commission (shared between the brokers of the buyer and the seller) is C $26330 to C $37300 before tax. In markets like Toronto, the average commission is more than C $62000 before tax.
Lawyers say he paid a “standard 2.5 per cent” commission to the buyer’s broker when Sunderland sold his house.
“in his view, the 2.5 per cent commission he has to pay is the result of a price-fixing conspiracy between GTA brokerages,” said Myers, a lawyer.
In March 2022, the Canadian Real Estate Association and the Toronto District Real Estate Board filed a motion against the lawsuit, dismissing the entire lawsuit on the grounds that there were “no reasonable grounds for action”. The motion will be heard in the autumn.