Turn up the volume on your real estate success at Inman On Tour: Nashville! Connect with industry trailblazers and top-tier speakers to gain powerful insights, cutting-edge strategies, and invaluable connections. Elevate your business and achieve your boldest goals — all with Music City magic. Register now.
RE/MAX has agreed to settle commission lawsuits in Canada that largely mirrored litigation in the U.S. The company agreed to pay $5.5 million and make unspecified business practice changes as part of the settlement.
The company said it reached the settlement agreement earlier this year and that it had “reached substantial agreement on monetary terms and business practice changes to resolve the Canadian antitrust litigations … which includes the payment of a total settlement amount of $7.8 million Canadian dollars.”
The Canadian lawsuits are known as Sunderland and McFall, which claim rules in the country inflate brokerage commissions and block competition.
Sunderland was filed first in September 2023. McFall was substantially similar to Sunderland but included more real estate defendants. RE/MAX’s Canadian entities were named in Sunderland.
The settlement once again put RE/MAX ahead of other defendants named in the suit in agreeing to settle and avoid trial. The company settled the Sitzer | Burnett lawsuit in the U.S. weeks before the case was set to go to trial, following Anywhere Real Estate.
The company denied wrongdoing as part of the settlement and didn’t immediately respond to a request for comment about the lawsuit or settlement.
In a statement to Real Estate Magazine, the company said the settlement would allow it to move forward.
“This decision was made in the best interest of the RE/MAX brand in Canada, including its franchisees and their sales associates, after carefully considering the significant risks and costs associated with continued litigation,” the company told the Canadian outlet.
It added that the settlement cleared the way to move ahead as RE/MAX works to stem ongoing losses in revenue and agents in North America.
In a statement, the Canadian Real Estate Association said it was committed to fighting the case.
“This news doesn’t change CREA’s own ongoing position and defence against these claims. We continue to believe they are without merit and remain committed to standing in support of our Realtor members,” CREA CEO Janice Myers said.
