Canada’s tightly controlled real estate system just saw its first crack appear. RE/MAX Ontario-Atlantic Canada (RE/MAX) has broken ranks, becoming the first brokerage to settle a class action targeting the industry’s commission rules and board structure. The $7.8-million deal, revealed this morning, comes with a seismic shift—the regional brokerage is ending its mandatory board membership for its agents and franchisees. It’s a direct hit to the MLS-linked commission model that has shaped the market for decades, and a blow to the dominance of CREA and local boards.
Canadian Real Estate Faces A Class Action Over Commission-Fixing
The class action suit, representing any seller between March 2010–July 2025, alleges commission price-fixing facilitated by firms, real estate boards, and franchisors, such as RE/MAX. The litigation is led by Mark Sunderland and Kevin McFall, arguing that mandatory MLS-linked compensation suppresses competition and inflates home prices. The rules, they argue, force sellers to pay buyer-broker commissions, in violation of Canada’s Competition Act.
RE/MAX Breaks Rank, First Canadian Real Estate Brokerage To Settle
The first brokerage to break ranks with Canada’s formalized real estate industry is RE/MAX Ontario-Atlantic Canada Inc., a regional branch of RE/MAX that does business in Ontario, New Brunswick, Newfoundland, Nova Scotia, and PEI. They first announced a tentative settlement in February, but it wasn’t until this morning that the details were released.
RE/MAX agrees to pay $7.8 million, snitch cooperate in the ongoing prosecution of non-settling parties, and implement reforms in its practice—the most significant being the end of mandatory requirements for franchisees, brokers, and agents to join certain boards or abide by restrictive rules. The settlement isn’t an admission of liability, and the real estate firm continues to deny any wrongdoing.
This settlement agreement only applies to RE/MAX sellers. Those opting out of the RE/MAX settlement have until September 22, 2025 to avoid being bound by the terms. The court is scheduled to review the agreement on October 6, 2025, potentially finalizing this portion of the class action.
Non-RE/MAX participants in the class action will be updated as progress is made on the case.
RE/MAX Settlement Applies Pressure On Other Brokerages
The agreement is the first major crack in the board system, raising questions about its structural integrity. By dropping mandatory board membership for its agents and franchisees, RE/MAX is undermining one of the key levers used to enforce industry norms—including commission rules.
Currently MLS participation is tied to local board membership, which enforces rules requiring preset buyer-broker commissions. This creates “steering bias,” where an agent promotes a listing due to the higher commission structure over other listings. An agent is incentived to show a property due to compensation, without necessarily disclosing upfront why they found the “perfect” property. Inflated commissions are paid through the purchase price—ultimately costing buyers more.
The RE/MAX settlement puts pressure on other brokerages to exit the restrictive policies. Brokerages wanting to stay competitive may follow suit, if they believe this is the right path. However, not all brokerages are going to be on board.
Since settlements are at the brokerage level, the agreements can vary—potentially not including operational changes. Parties can also choose to take the case to trial if they have the time and cash to challenge the case. If they win, their innocence is proven. If they fail to secure a win, they can be liable for much larger damages.
Cracks In Canada’s Organized Real Estate System Are Forming
Canadian real estate is largely built around what the industry calls organized real estate. This is a group that includes the federal CREA, provincial boards like OREA, and local boards like TRREB. These parties rely on mandatory membership to maintain MLS access and standard commission structures. A large brokerage like RE/MAX ending its restrictive policies for agents and brokers is a major blow to organized real estate—drastically reducing its power.
The class action suit also comes at a time when the Competition Bureau is investigating a similar area. In October 2024, it started to look into CREA’s commission rules and Realtor Cooperation Policy. In May 2025, it added the Québec Professional Association for Real Estate Brokers (QPAREB) and its MLS operator, Centris, to its investigation. As this class action makes further progress on the overlapping areas, the more likely the Competition Bureau is to see changes being voluntarily made.
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