FSBOs want to intervene in MLS debate
A national association of For-Sale-by-Owner companies is trying to intervene in an upcoming hearing before the Competition Tribunal involving real estate broker's access to the Multiple Listing Service (MLS).
The National FSBO network wants to intervene at the hearing on the basis that it offers real estate services that compete with those services offered by agents through the MLS. The Competition Bureau is trying to open up the MLS by allowing agents to offer a variety of services through the MLS, in addition to the "full service" model. In other words, they want the public to be able to hire an agent just to list a property on the MLS without having to pay for all of the other services that an agent has traditionally provided.
The FSBO network is concerned that, by opening up how real estate brokers can use the MLS, for-sale-by-owner companies will essentially lose their competitive advantage. If, for example, any agent is allowed to place a listing on the MLS without offering any other services in addition to the MLS placement, why would anyone use a service such as Grapevine, whose only advantage seems to be giving clients a listing on their website for a flat fee?
The Commissioner of Competition disagrees with granting leave to intervene to the National FSBO network on the basis that, as FSBO companies don't use the MLS, and are not real estate brokers, their perspective isn't relevant to the issue at hand.
No date has been set for the Competition Tribunal hearing.
Kerry Fox is a real estate lawyer practising in Nepean, Ontario
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