The Real Estate Couch

Mere Postings, Why you can lose more than just your sanity!!!

We heard a great story this week that we thought was worth sharing. As many of you are aware, the Competition Tribunal announced in October 2010 that Canadian Real Estate Association (CREA) and its members reached an agreement with the Commissioner of Competition to amend its rules so that they would not deny or discriminate against REALTORS® wishing to offer mere posting services.

"Mere Posting" means “a listing on a Member Board's MLS® System in respect of which the Member has chosen or agreed not to provide services to the Seller other than submitting the listing for posting on a Member Board's MLS® System.” What Realtor’s charge for this service, varies.

Recently, a home owner in Peterborough paid a Realtor $1000.00 to have his listing posted on the Realtor.ca system. Remember that the fee of $1000.00 covers submission of the listing only, not services. Once the property is posted, you’re on your own. No representation, advice, marketing, contract services or legal liaise work. Legal costs can mount should issues with zoning arise (as they often do).  

A licensed Realtor approached the homeowner because he had a buyer who was very interested in the property. The Realtor asked the home owner if he would be willing to “co-operate” with him. Co-operate means the Realtor would like to know if the home owner was willing to pay him a commission, he would normally make by bringing in and negotiating a successful offer.  The seller refused.   A few months later, presumably anxious to sell his house, the home owner listed with a Real Estate Brokerage. The original buyers and their Realtor contacted the seller’s real estate representative to view the property.

This story has a happy ending for our buyers. The Realtor put in an offer to purchase on behalf of his buyers and it was accepted by the seller. The purchasor’s got the home they wanted and the seller was able to move on.  However, listing with a licensed realtor in the first place would have saved the seller time, frustration, carrying costs and $1000.00 (non refundable fee).