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What Will Zoocasa Do with a Brokerage License?
Gearing-up for their big re-launch in May, Zoocasa has moved forward with their plans to become Canada’s next big online brokerage. The Rogers-affiliate, known popularly as a website that publishes Canadian real estate market information, quietly applied to the Real Estate Council of Ontario earlier this year and only now admits to the company’s intent.
Up until this point, Zoocasa has used Canadian realtors as their primary source for market information since MSL data is available only to registered realtors. With a brokerage license, Zoocasa can change the very foundation of their business. In saying this, the company will not hire any of their own real estate agents if they obtain the license; they will operate as a referral service.
Many in the real estate industry fear that if Zoocasa receives a brokerage licence, the market will over-populate. This concern rises from the company’s affiliation with telecommunications giant Rogers. Such worry has instigated a battle over rights with the Toronto Real Estate Board.
Conflict with the Toronto Real Estate Board
The MLS resists relinquishing their control over the market’s information. Such behaviour has been deemed anti-competitive and is being challenged by the Bureau. Currently, the Competition Tribunal is looking into the situation trying to figure out a potential solution. The Toronto Real Estate Board represents over 35,000 agents and has no intention of allowing access to private market information to anyone besides their agents. The board maintains that their data restrictions protect the privacy laws of buyers and sellers. By giving such information to companies like Zoocasa, the board fears that the Canadian real estate market could be exploited.
The debate between the bureau and the TREB did not begin with Zoocasa; in fact, this has been an on-going struggle for quite some time. One of the primary concerns, besides privacy infringement, is that increasing the accessibility of listing information will encourage discount brokerages to offer flat rates. Whether or not this is Zoocasa’s plan is irrelevant – it’s the possibility that is threatening. But what would this mean for clients? The board argues that houses could stay on the market longer and will not sell at competitive prices. The Bureau should reach a decision soon on how to resolve this conflict, ultimately deciding the future of the market currently used today.
