In recent months, members of the Mississauga Real Estate Board (MREB) have been anticipating the amalgamation with several other Ontario boards on July 1, forming the new Cornerstone Association of Realtors (Cornerstone).
However, unexpected concerns have arisen since the membership vote in January.
Background
In October 2023, the Realtors Association of Hamilton-Burlington (RAHB), the Waterloo Region Association of Realtors (WRAR), the Simcoe & District Real Estate Board (SDREB), and MREB announced that SDREB and MREB had signed a letter of intent to join the amalgamation of the four organizations.
On January 31 of this year, MREB members voted to amalgamate with RAHB, WRAR, and SDREB to become Cornerstone Association of Realtors on July 1, 2024.
Tehreem Kamal, a broker with Royal LePage Real Estate Services Ltd., Brokerage, spoke with REM to outline the concerns raised by many members and past presidents of MREB, with the amalgamation just around the corner.
Kamal, a former president herself, became aware of the concerns in May during an event hosted by MREB, where discussions focused on the rapidly changing landscape and MREB’s actions.
“I sought more information to understand the facts, the changes, the reasons for concerns, and who was expressing them,” she explained. “Questions were posed to the board of directors and the president, leading to a meeting of past presidents on May 8 where inquiries were addressed.” This included queries about the strategic plan’s whereabouts. Kamal mentioned that MREB was operating under the status quo and urged members to “trust the process.”
Original vision for amalgamation
Initially, the immediate past presidents of MREB were tasked with engaging in discussions regarding the amalgamation on behalf of MREB. They gave their consent for amalgamation based on the unanimous approval of MREB.
“All parties collaborated and began developing a plan and assessing feasibility, with significant efforts put in from all sides. MREB invested substantial funds and staff resources,” Kamal noted.
The original vision for the proposed amalgamation was for MREB and other Ontario boards to be part of a single board and MLS system: Information Technology Systems Ontario (ITSO)’s Matrix. Several boards, including MREB, Oakville, Milton and District Real Estate Board (OMDREB), London and St.Thomas Association of Realtors (LSTAR), Niagara Association of Realtors (NAR), and WRAR, utilize this system.
Boards from Mississauga to London, Niagara, and other regions were expected to join a unified organization to enhance representation and collaboration among member boards. Members could access necessary tools for serving clients without incurring excessive fees.
“The primary concern is that members are tired of paying multiple fees to multiple boards,” Kamal emphasized. “Agents struggle with the need to pay fees to access different systems or MLSs in various regions of Ontario. With Matrix, multiple boards were served by a single MLS system, offering convenience and efficiency — agents could access information easily to better serve their clients.”
MLS system decision extension
The initial ITSO MLS services agreement term was three years, ending on December 31, 2024. Any association/board wishing not to renew the term needed to provide ITSO with six months’ notice, setting the deadline for July 1, 2024.
However, ITSO received requests from several member groups for more time to decide whether to continue with the services or switch to a different provider.
As a result, ITSO’s board of directors extended the deadline for non-renewal notice to September 30, 2024, in February.
Tom Lebour, a broker at Royal LePage Real Estate Services Ltd., Brokerage, and a past president of MREB and the Toronto Real Estate Board, noted that this extension was a response to the evolving MLS landscape. “While MREB received the amalgamation mandate from its membership four months ago, the MLS landscape has been rapidly changing, prompting several boards to switch systems.”
He believes that with ITSO extending the MLS agreement renewal deadline until September 30, providing three additional months at status quo, boards have more time to reassess and make informed decisions.
Missing pieces and a changed vision
While Kamal acknowledged the well-intentioned vision for amalgamation, she highlighted some key missing elements. Early on, MREB’s immediate past presidents raised concerns in a letter and email to MREB, inquiring about the organizational structure, the CEO’s identity, the handling of MREB’s membership funds, and the legal vetting of contracts.
As a member of MREB, Kamal requested summaries or minutes of meetings from October to the present to review the changes that have occurred.
Additionally, she pointed out that the boards initially set to amalgamate have altered their course. LSTAR and NAR shifted to another service provider from the start. OMDREB is also considering a switch from Matrix to another system with 80,000 members in Ontario. “There is strength in numbers,” she emphasized. “If the bulk of GTA listings are under an MLS provider with 80,000 members, why create a silo with potentially 8,000 members?”
Despite the changing landscape affecting the original vision, Kamal recognized that decisions were made with the members’ best interests in mind. She expressed confidence in the boards’ commitment to listening to their members and prioritizing their needs.
Nevertheless, with the original plan for amalgamation involving multiple boards and some altering their MLS system plans, Cornerstone now consists of four boards: MREB, RAHB, WRAR, and SDREB.
Key concerns
Kamal and others questioned whether MREB is genuinely attentive to the evolving real estate industry and what would be most advantageous for its membership given the rapid changes in technology and the landscape. Several key concerns were raised about the amalgamation.
One primary concern is that the original vision has become fragmented due to the smaller amalgamated group of boards, which may not yield the anticipated power and benefits. Some MREB members fear they will end up paying for multiple boards once again instead of being unified under one umbrella.
“I have personally handled properties in London, as have my colleagues in the office — we operate throughout the GTA, wherever clients take us,” Kamal shared.
“Similarly, many in my office work and reside in Niagara, operating in Mississauga, Oakville, and Milton as well. For them, the issue remains the same. The proposed solution is no longer relevant or feasible.” Kamal emphasized the crucial importance of information access and data for members.
Another significant concern is the belief that with the amalgamation, Mississauga’s membership would have a stronger voice in the industry at provincial and national assemblies.
“However, the reality is quite the opposite. Presently, the remaining boards in the proposed amalgamation collectively hold a certain number of votes in the Ontario Real Estate Association (OREA) assembly. Once united, the formula for vote allocation changes, reducing the count. How can we have a stronger voice if our vote count decreases? This was my question at the president’s meeting in May with the board,” Kamal stated.
According to OREA’s bylaws, a member board’s vote allocation is determined by a formula based on individual member numbers. A newly amalgamated board’s vote allocation would be based on the total number of individual members and calculated accordingly.
Furthermore, Kamal and others are concerned about the fate of MREB’s funds after July 1. “Over $2 million of membership funds will be transferred to Cornerstone. How will access be managed if we need to address matters in Mississauga in the future, such as advocacy work?”
Lebour echoed this concern, fearing that accessing the funds within the new organization would become more challenging. “The $2.5 million being transferred to Cornerstone wasn’t undisclosed, but it wasn’t highlighted either,” he remarked.
These concerns have been repeatedly raised, and Kamal noted the lack of clear answers, indicating a lack of clarity. “If things are unclear, why rush into this amalgamation? In real estate or any other industry globally, organizations come together after extensive feasibility studies, reports, and scenario analyses.”
All these developments have unfolded since October 2023. Within less than a year, how can we fold an organization that has existed for 70 years?”
Advocacy and MREB’s role
Currently, a mayoral by-election is taking place in Mississauga. Kamal noted that historically, during such times, MREB has engaged with the city council and been involved in government relations and advocacy efforts. However, she expressed concern that MREB’s presence in these matters is currently lacking.
“This is a significant event in Mississauga, with housing being a hot topic. MREB represents individuals closely tied to housing, yet they are notably absent, which is concerning,” she remarked.
Lebour recalled an instance in 2021 where MREB collaborated with OREA to prevent the implementation of a land transfer tax. “The tax never materialized,” he said. “Now, I am unsure if Cornerstone will prioritize local issues, which are crucial.”
Questioning the shift in MREB’s focus, Kamal emailed the board regarding their stance on the mayoral debate, outreach to candidates, and the potential resurrection of the municipal land transfer tax.
Lebour highlighted that one of the primary mayoral candidates hinted at revisiting the tax, and MREB has a robust government relations committee for local advocacy. “Mississauga has historically defended the municipal land transfer tax, and I have been part of that effort,” Kamal affirmed.
In response to her email, Kamal received a message stating that the board was preoccupied with events like a golf tournament and receptions. While recognizing the value of charitable events, Kamal stressed that MREB’s primary responsibility is “to safeguard the interests of consumers in the housing sector.”
“We cannot lose sight of our mission,” she emphasized. “If the amalgamation or any other initiative detracts from MREB’s historical and current purpose, there is cause for concern.”
Transparency needed with partner boards
Kamal emphasized the importance of transparency with other amalgamating boards. “Do they realize that MREB’s membership has shifted since January and may be entering an amalgamation with potential challenges? They owe it to their members to keep them informed,” she stated.
She urged MREB to be transparent with their partners, not just the representatives of the amalgamation task force. It is crucial for all parties to have a clear understanding of the situation and not be led into an agreement that MREB may not be fully prepared for. “Even if a director is not part of the task force, they should understand the need to update their brokerages about the impending amalgamation with a key partner possibly having second thoughts,” Kamal added.
The SGM request
“Every member, past president, and industry member I’ve spoken with is in favor of collaboration but not of creating silos between the Mississauga board and others. This is why the membership has requested MREB to convene an SGM,” Kamal stated.
In May, past MREB presidents and industry members gathered signatures for a letter requesting a special general meeting (SGM). An email from past presidents John Cassan and Michael Mills reiterated concerns about the proposed amalgamation, mentioned the signed petition for the SGM, urged MREB to “pause the amalgamation and convene a membership meeting,” and warned that proceeding with the amalgamation would be “foolhardy, risky, and reckless.”
The duo recalled a past incident in the 1980s when MREB’s MLS system was sold to the Toronto board despite member objections, resulting in severe repercussions. They cautioned MREB against repeating the same mistake, emphasizing the potential severe consequences.
Subsequently, on May 28, ten past presidents of MREB, including Cassan and Mills, submitted a letter to MREB requesting a members-only SGM within the next ten days. The letter advised the board not to rush into any contracts without addressing members’ concerns at the proposed SGM.
While acknowledging that MREB’s response of “membership voted yes in January for the amalgamation” is valid, Kamal noted the significant changes that have transpired since then. “Considering the current reality, the membership wishes to revoke the January 31 vote, halt any amalgamation-related activities, and thoroughly assess the industry’s developments for the benefit of our members,” she emphasized.
She added that there is always room to explore future options once a comprehensive evaluation is conducted.
MREB’s response
At the time of writing, MREB had not accepted the SGM request or responded to the email from Cassan and Mills. However, a statement from Rita Asadorian, chair of MREB, was provided to REM:
“We have acknowledged the clear and decisive mandate from our members. Despite this, a small group of individuals has attempted to disrupt the process. While a petition for a special general meeting was submitted on May 28, 2024, signed by 10 past presidents, it did not meet the 10 percent member threshold required by the Ontario Not-for-Profit Corporations Act.
Nevertheless, we have taken proactive steps to address concerns. The MREB board of directors hosted delegates from our partner boards at a board meeting to resolve any issues. This session was productive and satisfactory for all participants. Similarly, we conducted a session with our past presidents, providing comprehensive information and addressing their inquiries. Both meetings concluded with a positive consensus supporting the amalgamation.”
Asadorian emphasized that significant decisions can lead to some discontent, but they have consistently addressed the concerns raised. “We have addressed the same concerns repeatedly and must proceed with the mandate provided by our members’ unanimous vote. We remain open to all questions and concerns, which can be directed to me at any time,” she stated.
She confirmed that all four associations are eager to demonstrate the benefits of their united efforts, noting that the amalgamation documents have been officially filed with the Ontario government, and the process will move forward.
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