To continue fostering thoughtful dialogue, we’re updating our comment policy. Going forward, readers will need to log in through Facebook to post comments on our website.

This change means we’ll no longer allow anonymous commenting. Our goal is simple: to encourage accountability and reduce slanderous or abusive behaviour that can undermine productive discussion. When readers stand behind their words, the conversation becomes stronger, more respectful and more valuable for everyone.

Using Facebook’s authentication system helps confirm that commenters are real people and connects each comment to a profile. We believe this extra step will help maintain the professional environment our community expects from us.

We also understand that transparency matters, so here are answers to a few common questions:

• Do you get my password? No. Passwords are never shared with us.

• Do you post on my Facebook? No. REM does not request or receive permission to publish anything on your behalf.

• What information do you store? We collect only your name, email address and a link to your Facebook ID to verify your account.

We remain committed to providing space for open, intelligent debate on the issues that matter most to Canada’s real estate industry. Let’s keep the dialogue constructive and continue learning from one another.

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post Letter from the Editor: We’re updating our comment policy at REM appeared first on REM.

According to the 2025 CMHC Mortgage Consumer Survey, the share of first-time homebuyers is on the rise, digital research is the norm and more buyers are stretching their budgets to the limit.

While renewals remain the most common mortgage transaction, the proportion of new buyers grew this year, with first-time purchasers making up 12 per cent of mortgage activity, up from 10 per cent in 2024. These buyers are optimistic, with 74 per cent believing their purchase is a good investment, though many are relying on financial gifts and are already feeling the squeeze of higher costs.

Digital-first decision making

More than ever, homebuyers are turning to the internet and social media for help navigating the complex process of buying a home.

A whopping 77 per cent of respondents conducted online research, with YouTube edging out Facebook as the most-used social channel. First-time buyers were especially plugged in: 85 per cent compared interest rates and 82 per cent used online mortgage calculators, and 71 per cent submitted a mortgage pre-qualification or pre-approval online.

Still, technology isn’t replacing human expertise. Overall, Realtors were seen as the most valuable person during the homebuying process (28 per cent among first-time buyers and 37 per cent among repeat buyers). 

How are they affording homes?

The report paints a revealing picture of how new buyers are managing to break into the market.

Gifts and inheritances played a major role, with 41 per cent of first-time homebuyers receiving one, averaging $74,570, towards their down payment. Despite the boost, the majority said they could have bought a home without the gift, but “with some concessions.” 

Saving up wasn’t easy either. First-time buyers reported an average of 3.7 years of saving, and 65 per cent paid the maximum they could afford. Overall, 58 per cent of homebuyers paid the maximum price they could afford, up from 46 per cent last year. In provinces like British Columbia and Ontario, that number climbed even higher.

Sticker shock still common

More homebuyers encountered unexpected expenses this year (42 per cent, up from 36 per cent in 2024). The most common surprise costs were immediate repairs, lawyer or notary fees, and home inspections. Buyers leaned heavily on credit and family loans to cover the gaps, with reliance on personal savings declining.

Adding to the financial stress, over half of first-time homebuyers reported difficulty keeping up with debt payments. Nearly one in six missed a mortgage payment, and 63 per cent expressed concern about potentially defaulting in the future, most citing cost-of-living increases and interest rates as key worries.

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post Gifts, YouTube and defaults? How 2025’s homebuyers are navigating the housing market appeared first on REM.

Calgary police announced on May 8, that Eric Drinkwater, 43, has been charged with one count of fraud over $5,000. Investigators say Drinkwater, a former associate broker at Re/Max Central, solicited loans disguised as real estate investment opportunities, resulting in at least 16 victims and a combined loss of more than $1.9-million.

Allegations of fraud

The scheme is believed to have occurred between March 2020 and February 2024. During this time, Drinkwater allegedly solicited numerous loans under the guise of real estate investment opportunities, assuring investors they would receive swift repayment with high interest. He also claimed the loans were secured through garnishments of his commissions from the brokerage. 

Police launched an investigation after a victim came forward, reporting that payments had not been made and communication with Drinkwater had ceased. The investigation subsequently uncovered several additional victims.

Civil court case

Legal proceedings have also unfolded in civil court. On Mar. 3, Loberg Ector LLP announced it had secured a judgment against Drinkwater in a lawsuit filed by four plaintiffs. 

The case centred on falsified bridge loans for non-existent real estate transactions that Drinkwater claimed were taking place through his brokerage. In reality, no such transactions existed, and the documents he provided to support the scheme were forgeries. 

The court awarded $2.28-million in losses, $185,000 in interest, and $1-million in punitive damages.

“A message (had to) be sent that Ponzi schemes will not be tolerated in Alberta,” said Blair Ector, founding partner at Loberg Ector LLP, in a news release. The court also declared that Drinkwater had acted fraudulently, a move that could prevent him from discharging the debt through bankruptcy.

According to the evidence presented in court, Drinkwater admitted to the Real Estate Council of Alberta (RECA) that the number of victims may exceed 100.

RECA ruling

RECA suspended Drinkwater’s real estate licence on Jun. 18, 2024, under section 53(1)(a) of the Real Estate Act, citing the public interest. At the time of the misconduct, Drinkwater was registered with 4th Street Holdings Ltd. o/a Re/Max Real Estate (Central).

The allegations against Drinkwater include breaches of multiple sections of the Real Estate Act Rules, including participating in fraudulent activities, misleading clients, and failing to notify the regulator of judgments against him. The RECA hearing notice also alleges that “none of the funds were used for (investment) purposes. (He) used the funds to pay debts, personal expenses and in furtherance of the fraudulent scheme.”

Loberg Ector LLP noted that the Real Estate Assurance Fund, “a fund which protects the public from unscrupulous industry professionals,” may be required to intervene in this case to protect victims, in the “likely event” that Drinkwater is unable to satisfy the civil judgment.

Drinkwater is scheduled to appear in court on the criminal charge on Jun. 11. Calgary police are asking anyone who believes they may also be a victim of fraud to contact them directly or provide tips anonymously via Crime Stoppers.

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post Former Calgary Realtor charged in $1.9M real estate investment scam appeared first on REM.

QUICK HITS: 

• Toronto condos represent over 65% of property transfers in 2024
• Single-party investors account for 20% of multi-property purchases
• Median age of Ontario’s first-time homebuyers: 40
• Average holding period for Toronto non-condo properties: nearly 18 years
• 25% of homes bought in 2022 under $1M sold at a loss by 2024

The last five years have taken Ontario’s housing market on a turbulent ride, marked by sharp rises and steep downturns. New insights from Teranet’s latest Market Insight Report, drawing from 2024 Ontario land registry data, provide a clearer view of how pandemic-fuelled market activity culminated across the province. 

The report explores trends such as a boom in new condo completions, mounting pressure on buyers who purchased homes during the peak and the emergence of single-party multi-property investors as major market players.

Condos accounted for more than 65% of sales in Toronto in 2024

In Toronto, condos made up the majority of property transfers, accounting for more than 65 per cent of all sales in 2024. But there’s more happening beneath the surface.

The city’s resale condo market was sluggish, marking its lowest activity in a decade. Yet, this downturn contrasts directly with a boom in newly completed condos. About 15,000 new condo units became ready for occupancy in 2024, a 78 per cent jump over the previous year.

“This flood of about 15,000 new condo properties that became available in 2024 was an important piece of data to fully understand the condo market,” the report states, suggesting the abundance of new units could partly explain the quiet resale market.

Multi-property owners remain the largest buyer segment in Ontario

Multi-property owners (MPOs) continue to dominate Ontario’s housing market, but their buying habits are changing. As of the end of 2024, according to Tereanet, the majority of MPOs, 55 per cent, own just two properties, and another 20 per cent have three. This means most MPOs aren’t aggressively building large portfolios—instead, they’re likely investing passively or holding second properties for personal use. 

There’s also been a noticeable pullback among big investors: those holding 11 or more properties dropped significantly from 13 per cent in April 2022 to about 7 per cent by the end of 2024. Interestingly, new MPOs—buyers who have just acquired their second property—make up 70 per cent of MPO transactions over the past decade. 

Toronto remains especially popular, with existing MPO transactions jumping 38 per cent and new MPO purchases rising 22 per cent in 2024, even as regions like York, Wentworth and Waterloo saw noticeable declines.

Number of properties held by multi-property owners as of December 31, 2024 (Teranet)

Single-party investors step into the spotlight

Another shift in Ontario’s investor landscape is the rise of single-party MPOs. These individual investors now represent 20 per cent of all MPO transactions. What’s particularly notable, Teranet says, is their ability to purchase properties without needing mortgages; almost one-third of these buyers paid entirely in cash.

The majority of these buyers, about 39 per cent, are Millennials, followed by Gen-Xers who account for 36 per cent. They’re primarily investing in Toronto, York and Peel regions, with no apparent preference for property type, buying an equal proportion of condo and non-condo properties. 

Regions feeling the pressure

Power of sale activity—often a sign of growing financial stress among homeowners—has been on the rise since 2022, though volumes remain below peaks seen in 2015 and 2016. In 2024, certain regions stood out as more vulnerable than others. Toronto accounted for 13 per cent of all power of sale transfers, followed by Peel at 9 per cent and Simcoe at 6 per cent. But when compared to their overall share of property transactions, some areas appear disproportionately affected. Peel, for instance, made up just 7 per cent of all transfers but 9 per cent of power of sales. Middlesex showed a similar pattern, with only 3 per cent of total transfer volume yet 6 per cent of power of sales. Meanwhile, regions like Halton and Waterloo saw relatively fewer distress sales.

Ontario power of sale transfer volume, percentage of volume by region, 2024 (Teranet)

Pandemic-era homebuyers see losses 

Many Ontario homeowners who bought during the market peak in 2022 and in 2023, and subsequently sold, lost money on their properties. Approximately 25 per cent of homes purchased under $1-million in 2022 and resold in 2024 incurred losses. 

Percentage of properties sold at a loss, by purchase and sold year, by sold value range (Teranet)

Across Ontario, the median loss for these homeowners is around $45,000, but in the GTA, the loss was higher at $56,000. In cottage-country regions like Muskoka, the median loss spikes dramatically to $240,000; however, the volume of transactions was relatively low. 

First-time buyers face tougher road

First-time homebuyers in Ontario are getting older, with the median age climbing to 40. A decade ago, the average first-time buyer spent about $500,000 for a non-condo home in Toronto. By 2024, that figure surged to $1.3-million, making condos a more attainable entry point for many newcomers to real estate. 

Homeowners staying put

Another critical shift is homeowners holding onto properties longer, particularly in Toronto. Non-condo homeowners now keep their properties for nearly 18 years on average, compared to roughly 14 years in 2015. 

“This data seems to correlate with the idea that due to the lack of affordability in Toronto, many choose to renovate their existing property as opposed to moving to a new one within the same area to meet their evolving housing needs,” the report notes. 

What’s ahead for Ontario’s market?

Teranet’s latest report highlights a growing divide in Ontario’s housing market between those who can comfortably invest and those who are increasingly priced out. Key patterns include the rise of the cash-rich investor and mounting financial stress among homeowners who bought during the market’s peak. First-time buyers continue to face significant hurdles, especially with non-condo properties in Toronto, pushing the average purchasing age to 40—a clear indication that affordability challenges continue to deepen across the province.

Read the latest edition of Teranet’s Market Insight Report here. 

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post Who’s buying, who’s selling and who’s losing: What 2024 data reveals about Ontario’s housing market appeared first on REM.

A Vancouver Realtor, his wife, and their five-year-old daughter were among 11 victims killed in a vehicle attack during the Lapu Lapu Day Filipino street festival in Vancouver.

The attack happened Saturday night, when police say a man deliberately drove through the crowded festival street.

Richard Le, 47, his wife Linh Hoang, 30 and their daughter Katie Le, 5, were among the victims who were killed. Richard’s brother, Toan Le, confirmed the news through a GoFundMe campaign to support the surviving son, 16-year-old Andy Le.

In a message on the fundraising page, Toan says Andy survived only because he had chosen to stay home and complete his homework.

The Le family 

Richard Le, a well-respected Realtor, was known as a dedicated father and passionate badminton and tennis coach. “He served his community and clients with pride and always went out of his way to help others,” Toan shared.

Linh Hoang, Richard’s wife and Andy’s stepmother, was described as gentle, kind-hearted, and caring, and had been preparing for a trip to visit her family in Vietnam. Their daughter Katie was about to graduate from kindergarten, described as vibrant and joyful.

Toan writes that the couple’s 16-year-old son is currently receiving support from extended family members. He says the GoFundMe campaign will help cover funeral expenses for Richard, Linh and Katie and provide financial support for Andy’s future education. At the time of publication, the campaign had raised nearly $500,000.

Remaining funds will be donated to victims’ families 

Acknowledging the widespread impact, Toan Le updated donors: “We are just one family out of many families that have been impacted by this tragedy. Once we are able to assess the financial needs and secure Andy’s future, we will be donating the balance to other victims. This is our public commitment because, as a community, we need to help each other through this challenging time.”

Greater Vancouver Realtors sends condolences 

The Greater Vancouver Realtors expressed their condolences through social media, “It’s with deep sadness that we share our condolences for our member Richard Le and his family, who were victims of the tragic events at Saturday’s Lapu Lapu Day celebration. Richard was a dedicated family man who served his community.”

Police identified the suspect as 30-year-old Kai-Ji Adam Lo, a Vancouver resident now facing eight counts of second-degree murder. Lo was detained at the scene by bystanders before Vancouver Police officers arrived. The BC Prosecution Service continues its investigation, indicating that additional charges are likely.

Authorities confirm that in addition to the 11 fatalities, more than two dozen people suffered injuries. Some victims remain unidentified as the investigation continues.

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post Vancouver Realtor, wife and 5-year-old daughter killed in attack, leaving son behind appeared first on REM.

A familiar face in the Canadian real estate landscape with more than 30 years of related experience—including recent tenure as president and CEO of Sotheby’s International Realty Canada—Kottick steps into the role at a pivotal time for the brand, which recently underwent a digital rebrand. His extensive background spans brokerage management, franchise development, corporate strategy and real estate technology.

“We are thrilled to welcome Don as the new President of Re/Max Canada,” said Eric Carlson, CEO, Re/Max Holdings Inc. “His experience, strategic vision and proven success in growing major real estate brands will be invaluable as we continue to lead the way in Canadian market share.”

Kottick’s role and responsibilities 

Based in Toronto, Kottick will oversee the operational direction and strategic support of the brand’s Canadian network, which includes more than 25,000 agents. 

“I am excited to join this exceptional team and contribute to the next chapter of growth,  increased agent productivity, and innovation for Re/Max Canada,” Kottick says in a press release. “I look forward to working  alongside the talented Re/Max affiliates across the country to capitalize on what the brand is  doing to modernize and forge ahead…” 

Track record of growth and success

Under Kottick’s leadership, Sotheby’s International Realty Canada experienced significant expansion—doubling its agent count and reaching record-breaking sales volumes. 

Former president of Re/Max Canada, Chris Alexander, tells REM, “I have known Don for many years, he is a true professional with a wealth of experience from almost every field in the industry.  I am excited to see what he will bring to the table…”

Kottick officially steps into the role on Apr. 28.

Former Re/Max Canada President Chris Alexander joins Andrew Fogliato to talk about the appointment of Don Kottick as the new President of RE/MAX Canada. Chris shares his initial reaction, advice for Don, and what he sees coming next for RE/MAX and the real estate industry overall.

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post Don Kottick announced as president of Re/Max Canada appeared first on REM.

​​On a fall morning in Ottawa, Janice Myers stood before a ballroom filled with industry leaders from across Canada. It was October, and after months of painstaking negotiations, meticulous planning and coast-to-coast listening tours, Myers had finally secured the vote to spin Realtor.ca into a standalone subsidiary. The decision marked a pivotal moment for Myers, punctuated by a spontaneous, joyful “happy dance” (as she describes it) on stage.

Reflecting on that milestone, Myers says, “Getting to the ‘yes’ vote in October was one of the most prideful moments of my career…it was just my emotions of getting to that point. It had been a tremendous amount of work…We wanted the community to come along with us in that decision, and they did.”

Now, months removed from that vote, Myers, the CEO of the Canadian Real Estate Association, stands behind her desk in her office at CREA’s headquarters in Ottawa, reflecting on the lessons of the past year and anticipating challenges to come. 

She speaks candidly, weaving narratives of family values, personal integrity and ambitious goals into a vision of what Canada’s real estate industry might become. She acknowledges the landscape is shifting rapidly, shaped by mounting legal challenges, intense public scrutiny and rapidly evolving expectations from members, and Myers knows her time to act decisively is now.

Achievement, competence, empowerment, harmony and grace

The CEO, known for her calm and composed demeanour, has remained steady. Her approach combines careful listening with decisive action—qualities honed through years of leadership experience. 

Born into a family that valued community and service, Myers’ career has consistently revolved around guiding organizations through complexity. Her journey includes significant roles in diverse organizations: before taking the helm at CREA, she spent 10 years as CEO of the Ottawa Real Estate Board, and notably, the 4-H organization, where she made the difficult decision to sell a beloved but financially draining camp facility. “With our hearts, we wanted to keep it; with our hands, we wanted to fix it; but with our heads, we knew we couldn’t,” she recalls, underscoring her willingness to make tough calls with empathy and transparency.

Her personal values—achievement, competence, empowerment, harmony and grace—are highlighted in her leadership style. Myers speaks openly about how these values guide her decisions and interactions, saying, “I want us to achieve great results. I want us to be confident. I empower others to step up and, particularly, women leaders to step up.”

CREA 2.0

Now at CREA, Myers outlines a strategic vision for what she’s dubbed “CREA 2.0”: a pivot designed to refocus the association on its core responsibilities, which she says are advocacy, professionalism and member value—takeaways from extensive conversations with Realtors, boards and associations across the country. 

“There were three clear values that came out. One was collaboration, the other was inclusivity, and the last was strategic alignment,” Myers notes, adding that the complexity of housing issues demands a unified approach. 

Turning vision into action

Her vision for the new and improved CREA isn’t just philosophical, it’s operational. With the Realtor.ca transition complete, she’s now channelling her focus into executing a set of clearly defined priorities for the year ahead.

First on the list is finalizing and launching the CREA 2.0 strategy, a process that includes wide consultation with stakeholders and a sharp focus on two pillars: professional excellence and advocacy. “We are going to be going out and saying this is what we’ve heard. This is what stakeholders have told us, this is where we’re moving, and this is what we’re going to focus on.”

Second, Myers is determined to amplify CREA’s leadership on national housing policy. Following the Realtor.ca transition, she plans to be more publicly engaged, meeting with government officials, coalition partners, and media to ensure that housing remains a national priority. Ahead of the 2025 federal election, she says, “Whatever government gets in, housing has to stay at the top.” 

Third, she emphasizes the importance of maintaining a strong, mutually supportive relationship with Realtor.ca, which includes coordinating shared services, ensuring financial viability and guiding both entities to thrive independently yet cohesively.

Finally, Myers is committed to navigating rising legal costs with fiscal discipline. With the legal defence fund nearly depleted and challenges looming, she’s preparing for tough financial decisions. “We’re going to have to take a really hard look, especially given rising legal costs that (will be) coming out of our operating budget,” she says. 

Ongoing legal challenges

Addressing CREA’s response to those ongoing legal challenges, notably the commission lawsuits that could reshape how Realtors transact in Canada, Myers says she’s anticipating a ruling from the Federal Court of Appeal in the Sunderland case in the coming weeks. 

When asked how ongoing litigation could impact Realtor reputation, she stresses clear, proactive communication, applying lessons learned from similar challenges faced by the National Association of Realtors in the United States. 

“The plaintiffs (in the U.S.) were able to create a David-and-Goliath story,” Myers explains. “Communication strategy is another area where (NAR) wished they had done differently. That’s something we’re definitely working on and thinking about.”

Regarding the recent special assessment fee proposed to bolster CREA’s legal defence fund—a vote that failed—Myers responds thoughtfully to criticisms from Saskatchewan Realtors Association CEO Chris Guerette, who urged CREA to “be bold” in response. “Chris is right…now that Realtor.ca is essentially managing a significant portion of membership dues, CREA needs to ground itself back in our priorities. There may be a bold move that’s necessary,” Myers conceded.

An opportunity to shape the industry

Amid these pressures, Myers’ approach remains measured, aimed not only at navigating immediate crises but also at laying the groundwork for a resilient, respected and future-ready real estate industry. Her leadership philosophy centers on empowering others, driving organizational excellence and maintaining transparency, critical to strengthening CREA’s role in shaping housing policy and safeguarding Realtor reputation.

Ultimately, Myers sees her tenure at CREA not merely as a time of managing crises but as an opportunity to shape the Canadian real estate industry positively and permanently. Her legacy, she hopes, will be defined by her achievements, greater unity within the sector and a real estate system that Canadians view with pride.

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post CREA 2.0: Janice Myers navigates a changing landscape for Canada’s real estate industry appeared first on REM.

Kottick’s departure follows a period of significant growth for the brokerage. Under his leadership, sales volume rose from $4-billion to $10-billion, and the agent population nearly doubled, he recently told REM.

A familiar face in Canadian real estate

A well-known figure in Canada’s real estate industry, Kottick previously served as executive vice president of corporate development at Peerage Realty Partners, where he was one of three founding members. His extensive experience also includes leadership roles at Right At Home Realty, Johnston & Daniel, AlignMark and AutoTrader.ca.

Kottick has also been an active figure in organized real estate. He served as director at large for the Canadian Real Estate Association from 2017 to 2021, national director for the Real Estate Institute of Canada from 2014 to 2019, and held leadership positions with the Toronto Regional Real Estate Board, including director at large and vice president of technology & business development.

“I decided to step down to explore other opportunities,” Kottick said in a brief statement, though no further details were revealed. His next move is highly anticipated within the industry. 

Kottick’s leadership style

In a January 2025 profile for REM, columnist Natalka Falcomer highlighted Kottick’s leadership style: “Kottick’s leadership journey offers a blueprint for managerial success in real estate. By prioritizing people, leveraging technology wisely and remaining adaptable in the face of change, he has not only navigated the complexities of the industry but has also inspired those around him to reach new heights.”

Next steps for Sotheby’s Canada

Following Kottick’s departure, Sotheby’s International Realty Canada will be led by an interim leadership team. According to an internal email obtained by REM, Evan Shandler has been promoted to chief operating officer, and Elaine Hung will continue as chief marketing officer, both based in Vancouver. Effi Barak, a consultant with Peerage Realty Partners and former CFO at a Bay Street law firm, will serve as interim president from the Toronto office.

Tara Brown, CEO of Peerage Realty Partners, confirmed that the search for a permanent CEO is underway. “We have started the search process for a new CEO to champion Sotheby’s International Realty Canada’s ongoing growth, building on the positive momentum of last year and the first quarter of this year,” she stated.

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post Don Kottick, Sotheby’s CEO, resigns to ‘explore other opportunities’ appeared first on REM.

The fee had been intended to provide a substantial boost to CREA’s legal fund amid escalating litigation tied to ongoing commission-related lawsuits and a Competition Bureau investigation. CREA previously told members its legal costs surged substantially 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 says, “The legal issues facing our industry are momentous: they are of national significance, high-profile, and often precedent-setting. As a result of today’s vote on the Legal Defence Program special assessment, CREA will now take the time to assess the impact of this outcome and adjust accordingly.”

Since its inception in 2006, CREA’s Legal Defence Program maintained a $2-million balance. The national association had intended to use the approximately $12-million that would have been generated from the levy to fund ongoing legal defence and increase the available balance in its legal fund to $10-million.

CREA had also proposed raising the new member initiation fee from $200 to $500 to replenish its contingency reserve fund. That motion—which passed narrowly with 51 per cent of delegates voting in favour—will take effect in June.

Industry reaction

Industry reactions to the vote were mixed. Brad Mitchell, CEO of the Alberta Real Estate Association, opposed the fee, arguing revenue should already cover legal expenses.

“CREA has a lot of resources, and ultimately, I think we saw in the defeat of the first motion a message from the membership that CREA already has the resources it needs to be successful,” Mitchell said shortly after the vote. “CREA has lots of opportunities, and they have a talented board of directors. I think they’ll figure it out.”

“Time to be bold—the membership is asking for it,’ says SRA CEO Chris Guerette

Saskatchewan Realtors Association CEO Chris Guerette supported the assessment, previously emphasizing unity during challenging times. “I would say the motion failing today is more a message to CREA than about the actual intent of this $75 levy—we are generally unified when it comes to properly defending this sector from litigation,” she tells Real Estate Magazine.

“While good fiscal progress has been made in the last year, the membership is sending a clear message that they want more from CREA’s performance,” Guerette adds. “In my opinion, this creates a nice landscape for CREA: they now have a clear political mandate to use this crisis as they see fit—innovate, cut and create large-scale efficiencies. Time to be bold—the membership is asking for it.”

Next steps

With the rejection of the special assessment, CREA may need to consider alternative strategies.

“The legal landscape has become more litigious, not just in Canada but across North America,” James Mabey, immediate past chair of CREA, told REM in a March interview. Mabey previously indicated CREA would need to explore other measures, potentially including increasing regular membership dues, underscoring the unpredictable nature of the current legal landscape. 

In the meantime, CREA promises that “critical defence against the Sunderland and McFall litigation and the Competition Bureau investigation will continue.”

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

The post CREA members reject $75 special assessment amid rising legal costs appeared first on REM.

In an email sent to member boards and associations, CREA says its legal costs ballooned from $626,000 in 2023 to more than $4-million in 2024—an increase of nearly 540 per cent. 

Since its inception in 2006, the legal fund has maintained a $2-million balance, but the association now wants to raise that amount to approximately $10-million to cover ongoing and future legal battles. 

“The legal landscape has become more litigious, not just in Canada but across North America,” CREA Chair James Mabey tells Real Estate Magazine.

Why CREA says the special assessment is necessary 

Mabey cites three main reasons for the special assessment request: a rise in litigation, changes in insurance coverage and increasing legal costs. “We’ve been dealing with the Sunderland litigation for a while, and now we have the McFall litigation in addition to the Competition Bureau investigation,” he says.

He explains that competition-related legal matters are no longer insurable, “That means the defence costs fall entirely on the industry.”

Mabey adds that legal fees have risen significantly. “This is a highly specialized area of law, and we need the best counsel to defend CREA and its members. That expertise comes at a high cost.”

Industry support and pushback 

Chris Guerette, CEO of the Saskatchewan Realtors Association, says in a statement that while SRA hasn’t always seen eye to eye with CREA, this is a moment to stand together. “In times of uncertainty, it’s important to lean on each other. The class-action lawsuit is one of those situations,” she says.

While some industry leaders support the move, others are questioning the association’s financial management. Brad Mitchell, CEO of the Alberta Real Estate Association (AREA) argues CREA should have planned for the rise in legal expenses.

“Revenue is increasing, not decreasing, so there should be ample funds to cover legal costs,” Mitchell says. “Defending members is one of the core responsibilities of both provincial and national associations, and membership dues should already account for this.”

Mitchell explains his association is currently defending Alberta boards named in the commission lawsuits. “Real estate is a provincial jurisdiction, with different laws, contracts and regulations in each province. Legal defences are handled at a provincial level, so a national levy isn’t necessarily the best solution,” he adds. “These lawsuits have been an issue in the U.S. for years, so this situation shouldn’t be a surprise.”

CREA maintains that its legal defence fund was sufficient until recently, arguing rising legal costs now require additional funding.

“(The legal defence fund) is currently funded through dues, and we have worked hard to balance CREA’s budget. However, the increase in legal costs is too significant to be covered within the existing budget,” says Mabey. The assessment represents nearly 50 per cent of CREA’s annual budget, he says. “Cutting that amount would drastically impact our programs and services.”

The CREA chair warns that the legal challenges facing the industry are unlikely to subside. “We anticipate a more litigious environment moving forward. Even in the U.S., where there have been settlements, litigation has not slowed down. There are pending buyer-side lawsuits there as well.”

When asked whether CREA could request additional fees in the future, Mabey acknowledges the possibility but says the current request is intended to be a long-term solution. “There’s always a possibility, but we have asked for an amount we believe will sustain us for three to four years.”

Next steps

In addition to the special assessment, CREA is also proposing to increase its new member initiation fee from $200 to $500 to replenish its contingency reserve fund.  CREA’s member boards and associations will vote on both motions at the annual general meeting in Ottawa on Apr. 8. 

The Toronto Regional Real Estate Board, which holds a significant share of voting power, has not publicly commented on how it will vote. In a statement to REM, CEO John DiMichele says, “It would be premature for TRREB to discuss at this stage of deliberations.”

If the assessment fails to pass? “We would need to reassess and possibly look at increasing membership dues,” Mabey says. “We have budgeted responsibly for the upcoming year, but beyond that, we would have to reassess based on legal developments. These expenses are not linear; they depend on court proceedings and regulatory actions.”

Jordana Springgay

Jordana is the editor of Real Estate Magazine. You can reach her by email. 

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