Competition Bureau supports Real Estate Council of Alberta decision to end restrictions on cash rebates and referral fees

Ottawa, June 15, 2006 — The Competition Bureau is pleased with the Real Estate Council of Alberta's (RECA) recent decision to eliminate rules prohibiting real estate brokers from offering cash incentives to buyers and to remove restrictions on the payment of referral fees in certain circumstances.

The amendments were announced by RECA on May 29^th, 2006, following widespread consultations on Alberta's Real Estate Rules. As a result of the changes, brokers in Alberta will now be free to offer cash rebates on the sale of a home to buyers as a means of competing for their business. Through the use of referral fees, they will also have access to greater means of identifying prospective buyers and sellers. The amendments will come into force on October 1, 2006.

Through discussions with RECA, the Bureau strongly encouraged the adoption of these amendments as they will promote more vigorous competition for real estate services in Alberta. They also represent a good example of cooperation between the Bureau and provincial regulators for the benefit of competition and of all Canadians.

RECA is an independent, non-government agency, responsible for regulating industry professionals in the real estate, mortgage broker, and real estate appraisal industries under Alberta's Real Estate Act.