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The decision to make Realtor.ca a for-profit subsidiary of the Canadian Real Estate Association (CREA) is designed to create a more nimble and responsive business unit, a spokesperson for the Ottawa-based national industry group said.
At CREA’s 2024 Special General Meeting on Wednesday, a majority of members voted to transition the real estate website to become a wholly owned, taxable subsidiary of the organization, which owns and operates the platform.
As a result, new revenue streams will be opened up which are not possible under CREA’s non-profit status, Pierre Leduc, CREA’s media relations officer, told RENX Homes in an interview.
“Part of the transitioning is to better respond to consumer demands, revenue generation opportunities and also competition because we know there’s more and more property portals that are coming. We’re at the first step of the long way to go still.”
CREA has over 160,000 members across 65 boards and associations in Canada. Realtor.ca is Canada’s largest real estate website, hosting MLS listings for residential and commercial properties, Realtor searches, a mortgage calculator and general information on the industry.
Why the decision was made
Transitioning Realtor.ca to a taxable entity that can generate revenue has been in the works for approximately 18 months. In February 2023, a letter was sent to CREA’s boards that outlined the shake-up, according to Real Estate Magazine.
By changing to a for-profit model, it enables longer-term planning and a “business arm that can actually respond to the needs of the market,” Leduc said.
Greater competition in the property technology and property listing spaces were named as motivators for the change. A taxable subsidiary would be better respond to competitors and provide superior service for Realtors, clients, and homebuyers and sellers, he contended. For example, website management would not have to call a general meeting of CREA's membership to discuss potential changes to the site.
Realtor.ca will continue to operate as a non-profit in the short-term, but how exactly the project will shape out is being finalized by upper management, Leduc said. He could not disclose an example of a possible revenue model.
"This decision represents a forward-thinking approach that reflects the evolving needs of both Realtors and consumers. By transitioning Realtor.ca into a wholly owned subsidiary, 100 per cent owned by CREA, we’re unlocking new opportunities for innovation and growth while ensuring Realtors remain at the heart of the platform,” Janice Myers, CREA’s CEO, said in the announcement.
Will CREA maintain its independence?
Changing Realtor.ca’s has structure sparked criticism and debate. Victoria, B.C.-based Realtor David Langlois wrote in Real Estate Magazine that the possibility of introducing advertising to generate referral revenue and selling user data will “fundamentally change the user experience that Canadians seek from Realtor.ca.”
In response, Leduc said Realtor.ca will remain owned by CREA, and the platform will be managed by an independent board as a taxable entity. Profits from the revenue will be re-invested into the platform, he continued.
Further engagement over the coming months will be made to reveal more of CREA’s plan for Realtor.ca.
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