Re/Max Canada confirms the court has approved its $7.8-million settlement of two class-action lawsuits that challenge real estate commission structures.
The company confirmed in a statement to Real Estate Magazine that a decision was issued this week, enabling Re/Max to move forward with addressing allegations in the Sunderland and McFall cases, which claim that existing rules mandating homesellers to pay buyer brokerage commissions inflate costs and limit competition.
Re/Max first revealed the settlement agreement in February.
“Re/Max Canada is pleased the court has approved our settlement in the Sunderland and McFall cases, and we thank the court for its thoughtful review and decision,” reads a statement provided to REM. “Since the beginning of this process, Re/Max has been focused on supporting our network and reinforcing the strength of the brand. Our community of trusted, productive professionals will continue to deliver exceptional value to buyers and sellers across the country.”
Re/Max has maintained that the settlement is not an admission of wrongdoing.
This development follows similar settlements in the United States, where Re/Max and other major real estate companies, as well as the National Association of Realtors (NAR), agreed to financial settlements to resolve claims of anticompetitive commission practices.
Settlement details
According to a notice published in August by Toronto law firm Kalloghlian Myers LLP, the settlement requires three things of Re/Max:
- Pay $7.8 million
- Cooperate in the ongoing prosecution of the class actions against the non-settling defendants
- Implement several changes, including “ending the practice of requiring its franchisees and their affiliated brokers, salespersons and agents to join or to be members of a real estate board or association defendant or to follow the rules alleged to give rise to damages claimed in this proceeding.”
Courtney Zwicker is a digital reporter and associate editor for REM. Based in Atlantic Canada, she has over a decade of experience covering daily business news.
