Latest Yukon Realtor Group Under Scrutiny for Competition Concerns

Canadian real estate groups are facing increased scrutiny over alleged anti-competitive behavior, with the Yukon Real Estate Association (YREA) being the latest to come under fire. Last week, the Competition Bureau announced that it had reached a consent agreement with YREA, finding that the association had engaged in anti-competitive conduct by imposing a residency requirement for prospective members.

The residency rule, deemed an “abuse of dominance” under the Competition Act, was found to hinder new competition in the real estate market, particularly for services offering alternative choices and fee structures compared to traditional full-service brokers. YREA President Marc Perreault stated in an interview that the association never denied anyone’s application based on residency and speculated that the matter was brought to the bureau’s attention through a policy review.

In a similar case, the Competition Bureau signed a consent agreement with the Northwest Territories Association of Realtors addressing a comparable residency requirement. Perreault defended YREA’s adoption of the rule, citing the belief that consumers benefit from local agents well-versed in Yukon’s unique characteristics.

As part of the consent agreement, YREA has committed to refraining from enforcing residency requirements and ensuring fair access to the market for future competitors. Commissioner of Competition Matthew Boswell emphasized the importance of competition in the real estate sector, stating that it stimulates innovation, lowers prices, and improves the consumer experience.

The consent agreements come amid serious allegations of anti-competitive behavior in the Canadian real estate market, with class-action lawsuits in Toronto alleging artificially inflated commissions and restricted competition for buyer brokerage services. The Competition Bureau continues to investigate potential compliance issues through various means to protect competition in the real estate sector.