Competition Bureau Secures Federal Court Order to Investigate Real Estate Commission Practices in Greater Vancouver

Canada’s real estate market is once again under the microscope. On February 20, 2026, the Competition Bureau confirmed it had secured a Federal Court order requiring Greater Vancouver REALTORS® to hand over records tied to commission practices.

At the heart of the matter are the rules that shape how real estate agents get paid — who pays them, how much they earn, and how those fees appear on Multiple Listing Service (MLS) systems.

While commissions have long been a standard part of buying and selling homes, regulators are asking whether certain policies might be limiting competition.

Why Greater Vancouver REALTORS® Are Now in Focus

The latest court order compels Greater Vancouver REALTORS® (GVR) to provide documents and data relevant to the Bureau’s investigation.

The scrutiny centers on how GVR applies and enforces commission rules within the Greater Vancouver housing market — one of the most expensive and closely watched real estate regions in the country.

Greater Vancouver has consistently ranked among Canada’s priciest markets, with average home prices often exceeding the national average by a wide margin.

Because commission fees are typically calculated as a percentage of the sale price, even small differences can translate into significant sums for buyers and sellers alike.

How Commission Rules Work

In many Canadian markets, when a seller lists a property on an MLS platform, the seller’s agent must specify compensation for a buyer’s agent.

These cooperative compensation arrangements are deeply embedded in traditional brokerage models.

The MLS systems themselves operate under the umbrella of Canadian Real Estate Association (CREA), a national industry group that sets policies for member boards and associations across the country.

The Bureau is examining whether such rules may:

• Make it harder for buyer agents to compete by offering lower commissions or innovative pricing models;

• Encourage “steering,” where agents may direct buyers toward properties offering higher compensation;

• Restrict competition in other subtle ways that could keep overall transaction costs elevated.

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The Legal Angle: Abuse of Dominance?

The investigation falls under provisions of the Competition Act, Canada’s primary law governing anti-competitive conduct.

Specifically, regulators are assessing whether these commission practices could amount to abuse of dominance or breach other civil provisions designed to protect market competition.

Abuse of dominance cases typically involve situations where a dominant player — or coordinated group — uses its position to stifle competition.

In the real estate world, access to MLS systems is crucial. Agents who are not part of the established framework may struggle to compete effectively, which makes MLS rules particularly influential.

It’s worth noting that similar commission structures have faced legal challenges in other countries.

In the United States, for example, high-profile lawsuits in recent years have reshaped how commissions are disclosed and negotiated, leading to settlements and policy changes within major real estate associations.

What’s at Stake for Buyers and Sellers?

For homebuyers and sellers, the outcome could have real financial implications. Commission fees are typically one of the largest transaction costs in a home sale.

In competitive or high-value markets like Vancouver, even fractional percentage differences can add thousands — sometimes tens of thousands — of dollars to the final bill.

If regulators determine that certain rules limit competition, changes could open the door to:

• More flexible commission structures

• Greater fee transparency

• Increased use of flat-fee or alternative brokerage models

• Enhanced price competition among buyer agents

On the other hand, industry groups often argue that cooperative compensation ensures broad exposure for listings and simplifies transactions for consumers.

What’s Next?

The Federal Court order requires Greater Vancouver REALTORS® to produce detailed records and information relevant to the investigation. Once that material is reviewed, the Bureau will decide whether further legal steps are warranted.

Possible next stages could include negotiated changes to policies, applications to the Competition Tribunal, or the closing of the case without action if no concerns are substantiated.

For now, the investigation continues quietly behind the scenes. Given the scale of Canada’s housing market — and the ongoing affordability challenges facing many Canadians — the outcome could influence how real estate services are structured and priced nationwide.

Whatever the result, the scrutiny marks a significant moment for the industry, signaling that even long-standing commission practices are not immune from regulatory review.

Summary

The initial investigation began with a focus on the Canadian Real Estate Association

When the Bureau launched its probe in 2024, its primary attention was on CREA’s national policies and how commission rules might influence agent competition across Canada.

Now, the investigation has widened. Regulators are digging deeper into how those policies are applied on the ground — particularly in Greater Vancouver. The court order signals that the Bureau wants a clearer picture of how rules operate in practice, not just how they appear on paper.

Importantly, there has been no finding of wrongdoing. The investigation remains active, and the Bureau has emphasized that conclusions have not yet been reached.