RECA

The Competition Bureau initiated an inquiry on September 21, 2005, following receipt of a request to investigate rules enforced by the Real Estate Council of Alberta (RECA) that prohibited real estate brokers from offering cash incentives and referral fees to non-industry members in Alberta.

On May 29, 2006, following widespread consultations and discussions with the Bureau, RECA announced amendments to Alberta’s Real Estate Act Rules. As a result of the changes, brokers in Alberta are now 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 also have access to greater means of identifying prospective buyers and sellers. The amendments came into force on October 1, 2006.

The Bureau concluded that the amendments to the Rules should alleviate any substantial lessening or prevention of competition in the relevant markets. As such, the inquiry was discontinued on November 1, 2006.