Today, the Canadian Real Estate Association (CREA) conducted a special general meeting (SGM) in Ottawa where members voted in favor of transitioning Realtor.ca into a wholly-owned taxable subsidiary of CREA.
The platform has been operating on a not-for-profit basis up to this point.
“This decision represents a forward-thinking approach that reflects the evolving needs of both Realtors and consumers. By transitioning Realtor.ca into a wholly owned subsidiary, 100 per cent owned by CREA, we’re unlocking new opportunities for innovation and growth while ensuring Realtors remain at the heart of the platform,” says Janice Myers, CREA CEO.
The rationale behind the structural change
Over the past 18 months, CREA has been consulting with the Realtor association community to discuss the future of Realtor.ca and the potential for this change, citing it as a “financial necessity and strategic move to secure Realtors at the center of Canadian home buying, selling, and renting journeys.”
CREA acknowledges that Realtor.ca has played a significant role in how real estate is marketed and consumed in Canada but states that the current model is not sustainable due to increasing competition in the tech industry, rising consumer expectations, and escalating operational costs.
The organization points out that Realtor.ca is limited in pursuing new revenue streams or engaging in certain business activities. A for-profit model would address this issue and position CREA better for success in a competitive market.
PricewaterhouseCoopers (PwC) conducted an analysis and identified opportunities that the transition could provide in a draft business case.
The analysis indicated that as a taxable entity, Realtor.ca could generate substantial estimated revenues to reduce reliance on CREA funding from member dues. Over a 10-year period, funding from member dues for Realtor.ca would decrease from 43 percent to 25 percent, allowing CREA to focus on advocacy and professionalism.
While member dues may not decrease, these funds could be allocated to priorities other than Realtor.ca.
Proposed focus areas
In a previous interview with REM, Myers stressed the importance of maintaining control while enhancing the platform’s capabilities and ensuring it continues to meet the evolving needs of both consumers and Realtors. She outlined three key points established by a special task force and approved at an SGM:
1. Ownership. Realtor.ca will remain wholly owned by CREA, ensuring that Realtors retain ownership through their membership.
2. Governance. The platform will be overseen by an independent board and operate as a taxable entity, allowing for greater operational flexibility.
3. Revenue reinvestment. Any profits generated will be reinvested back into the platform for the benefit of Realtors and consumers alike.
“Today’s vote is about securing the future of Realtor.ca. Every day, Realtors proudly serve 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,” says James Mabey, CREA chair.
“We’re excited about the future of Realtor.ca and grateful for the trust and support of our members as we take this important step,” Myers adds.
Photo: CREA
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