Over the past two years, real estate headlines in both the United States and Canada have been dominated by something most consumers had never even heard of before: class-action lawsuits against real estate associations, specifically the National Association of REALTORS® (NAR) in the United States and the Canadian Real Estate Association (CREA) here in Canada.

The headlines have been dramatic.
“Realtors sued billions.”
“Commissions collapsing.”
“Homebuyers no longer have to pay agents.”
And many people—buyers, sellers, and even agents—are understandably confused about what’s actually happening.

This article breaks down the lawsuits in simple terms, explaining what sparked them, what changes (if any) are coming, and why—despite the noise—commissions in North America have always been negotiable and remain that way today.

Let’s start with the U.S., because the American rulings are what triggered much of the discussion globally.

 

The NAR Lawsuit (USA): What Happened?

A major class-action lawsuit in the United States argued that the traditional commission structure made buyers indirectly responsible for paying the buyer-agent commission through the seller’s listing agreement. Many consumers said they didn’t know they could negotiate the fee or choose different models.

A jury agreed, awarding billions in damages against NAR and several large brokerages.

NAR settled. And as part of the proposed settlement, a few things changed:

  • Sellers are no longer required to offer compensation to buyers’ agents on the MLS

  • Buyer agents must have written agreements with their buyers

  • Commissions are fully transparent and negotiated directly

This sparked viral conversations online—mostly misunderstandings—and many people thought:
“Does this mean agents will work for free?”
“Are commissions disappearing?”
“Is buying a home going to cost less now?”

The reality:
Commissions in the U.S. were always negotiable. This simply forced the industry to make that fact clearer.
Buyers can still hire representation. Sellers can still choose to offer buyer-agent compensation. And real estate continues to operate—just with more written agreements and transparency.

 

The CREA Class Actions (Canada): What’s Happening Here?

Shortly after the U.S. lawsuits went viral, several law firms in Canada launched parallel class actions against CREA, the Canadian Real Estate Association, and various local boards and brokerages.

The claims are similar to the U.S. argument:

  • That the structure requiring sellers to offer compensation to buyer agents in order to list on MLS® inflated commissions

  • That consumers were not fully aware of their options

  • And that buyer-agent compensation should be negotiated differently

These cases are still in the very early stages.
There is no ruling.
There is no settlement.
And commissions in Canada are still negotiated the same way they always have been: between the seller and their chosen brokerage, and between the buyer and their brokerage.

CREA has stated publicly that it intends to vigorously defend the Canadian system, arguing that:

  • commissions are already negotiable

  • consumers have choice

  • the Canadian market structure is different from the U.S.

In short: Canada is not the U.S., and even if changes eventually come, they will not mirror the NAR settlement one-for-one.

 

So… What Does All of This Actually Mean?

Across both countries, here is the bottom line:

1. Commissions were always negotiable — and still are.

This is the most misunderstood part of the entire story.
There has never been a fixed commission rate.
There has never been a mandatory structure.

Like any other service industry — lawyers, builders, mechanics, consultants —
you negotiate the service and compensation that works for you.

The lawsuits simply highlighted that many consumers didn’t realize this.

2. Written buyer agreements are becoming more common.

In the U.S., they are now mandatory.
In Canada, they are increasingly encouraged and may eventually become standard.

This is not a bad thing.
It increases transparency, expectations, and professionalism.

3. Sellers may see more variety in commission structures.

Some sellers may still offer buyer-agent compensation.
Some may not.
Some may offer incentives.
Some may negotiate hybrid models.

And that’s healthy — more options, more clarity, and more informed decision-making.

4. Buyer representation becomes more intentional.

Buyers will think more carefully about:

  • who they hire

  • what services they need

  • what value an agent provides

Good agents will demonstrate clear value.
Poor representation will fade away.
The market will simply become more accountable.

5. None of this means prices will drop or homes will be cheaper.

Some headlines implied that commission lawsuits would magically make housing more affordable.
Housing affordability issues are rooted in:

  • supply shortages

  • construction timelines

  • interest rates

  • zoning constraints

  • population growth

Changing how agents get paid does not fix these economic realities.

 

What This Means for Buyers and Sellers in Canada

Although the Canadian lawsuits are ongoing, the conversation itself is driving change. Here’s how it affects Canadians today:

For Sellers

  • You continue to choose your commission structure

  • You continue to decide whether to offer buyer-agent compensation

  • You continue to hire the agent and brokerage that best suits your goals

  • Competition among agents may increase — giving you more choice

For Buyers

  • Expect more written buyer-representation agreements

  • Expect more clarity in service packages

  • Understand the value you receive (market expertise, negotiation, protection, due diligence)

  • Know that representation is not “free,” but the way it is paid may become more transparent

For Agents

  • This is an opportunity to raise the bar

  • Communication, documentation, and value-proposition matter more than ever

  • The agents who thrive will be those who educate, protect, and negotiate at a high level

 

My Position

You asked me to reflect your view:
Real estate commissions were always negotiable — just like any commerce.

That’s absolutely true.
If you hire a contractor, a lawyer, a consultant, a plumber, or a mechanic —
you discuss scope, price, timing, and compensation.

Real estate is no different.
It has never been different.
The lawsuits don’t create negotiation — they simply highlight it.

Consumers today want clarity, choice, and transparency.
Good agents already operate this way.
The industry is now catching up to what good professionals have always done:
educate, communicate, and collaborate.

 

Final Thoughts

Whether in the U.S. or Canada, the class-action lawsuits are less about destroying the real-estate model and more about forcing clarity into a system many consumers didn’t fully understand.

The truth is simple:

  • Commissions are negotiable

  • Representation is valuable

  • Transparency is healthy

  • Professionals who serve well will continue to thrive

The market isn’t collapsing — it’s evolving.

Buyers and sellers who stay informed and work with experienced professionals will continue to succeed, no matter what changes come next.

 

1 Luv, 

Peter Garonis (Petey G) w Cgpt

 

References

(No line separators, placed before hashtags)

https://globalnews.ca
https://nar.realtor
https://crea.ca
https://inman.com
https://www.realtor.org
https://www.cbc.ca/news

 

#RealEstateCanada #CREALawsuit #NARSettlement #RealEstateCommissions #HomeBuyingTips #HomeSellingCanada #RealEstateEducation #HalifaxRealEstate #BuyerRepresentation #RealEstateTransparency