Canadian Realtors successfully avoided an additional association fee after the proposed $75 per-member special assessment was voted down at the Canadian Real Estate Association’s annual general meeting in Ottawa on Apr. 8.
The fee was intended to provide a significant boost to CREA’s legal fund amid escalating litigation related to ongoing commission-related lawsuits and a Competition Bureau investigation. CREA previously informed members that their legal costs had surged from $626,000 in 2023 to over $4 million in 2024—a nearly 540 per cent increase.
The vote was close, with 57 per cent of delegates voting against the assessment.
CREA’s response
In a statement, CREA spokesperson Pierre Leduc said, “The legal issues facing our industry are significant: they are of national importance, high-profile, and often set precedents. Following today’s vote on the Legal Defence Program special assessment, CREA will now evaluate the impact of this outcome and make necessary adjustments.”
Since its establishment in 2006, CREA’s Legal Defence Program had maintained a $2 million balance. The national association had planned to use the approximately $12 million that would have been generated from the levy to support ongoing legal defense and increase the available balance in its legal fund to $10 million.
CREA had also suggested raising the new member initiation fee from $200 to $500 to replenish its contingency reserve fund. This motion, which narrowly passed with 51 per cent of delegates in favor, will be implemented in June.
Industry reaction
Industry reactions to the vote varied. Brad Mitchell, CEO of the Alberta Real Estate Association, opposed the fee, arguing that existing revenue should already cover legal expenses.
“CREA has ample resources, and ultimately, I believe the defeat of the initial motion sends a message from the membership that CREA already possesses the resources necessary for success,” Mitchell said shortly after the vote. “CREA has numerous opportunities and a skilled board of directors. I am confident they will find a way forward.”
“Time to be bold—the membership is asking for it,’ says SRA CEO Chris Guerette
Saskatchewan Realtors Association CEO Chris Guerette supported the assessment, emphasizing unity during challenging times. “I believe the motion failing today is more a message to CREA than a reflection of the actual intent of this $75 levy—we generally stand together in properly defending this sector from litigation,” she told Real Estate Magazine.
“While there has been good fiscal progress in the past year, the membership is clearly indicating that they expect more from CREA’s performance,” Guerette added. “In my view, this presents an opportunity for CREA: they now have a distinct mandate to use this crisis as they see fit—innovate, trim, and create significant efficiencies. It’s time to be bold—the membership is requesting it.”
Next steps
With the rejection of the special assessment, CREA may need to explore alternative strategies.
“The legal landscape has become more litigious, not only in Canada but across North America,” James Mabey, immediate past chair of CREA, stated in a March interview with REM. Mabey had previously suggested that CREA would need to consider other measures, potentially including raising regular membership dues, highlighting the unpredictable nature of the current legal environment.
In the meantime, CREA assures that the “critical defense against the Sunderland and McFall litigation and the Competition Bureau investigation will continue.”
Jordana is the editor of Real Estate Magazine. You can reach her by email.
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