I recently had the opportunity to sit down with Trevor Koot, the mind behind the Business is Fcking Hard podcast, to delve into the insights and experiences that shaped his journey. In our candid Q&A session, Koot shared the inspiration, challenges and personal stories that have driven the creation of his impactful podcast.

This conversation has excellent value for real estate agents and broker-owners, as we’re all entrepreneurs. And it’s hard.

The inspiration

When asked about the inspiration behind the Business is Fcking Hard podcast, Koot emphasizes the need for vulnerability among business owners. He recalls a pivotal moment in 2008 when, during a speech at the Provincial Chamber of Commerce in Saskatchewan (he had been nominated for an entrepreneurship award), he candidly declared, “Business is f*cking hard,” which was met with resounding applause.

This reaction underscored the shared struggles of entrepreneurs and the necessity for open conversations about the realities of running a business. His TED Talk further fueled the podcast idea, aiming to connect with business owners who often feel isolated in their challenges.

Relevance to realtors

The insights and experiences shared on the Business is Fcking Hard podcast are particularly relevant to real estate agents. Like other entrepreneurs, agents face the daily challenges of managing their own businesses — from financial stability and staffing decisions to maintaining morale and navigating the ever-changing market.

The podcast’s emphasis on vulnerability, shared struggles and practical lessons can provide valuable guidance and reassurance to real estate agents as they navigate the ups and downs of entrepreneurship.

A defining experience

Koot recounts a particularly tough day in his entrepreneurial journey when he had to lay off seven employees to save his company. This experience of grappling with unsustainable growth fueled by the belief that Silicon Valley popularized — “growth for growth’s sake” equals success — deeply impacted him.

Koot’s raw, honest and actionable blog posts have also chronicled the struggles of navigating the unpredictable waters of entrepreneurship, from facing financial instability to managing staff expectations and morale. Before the podcast, Koot wrote articles sharing these stories, setting the stage for the more expansive and personal format of podcasting.

Debunking misconceptions

Koot’s podcast delves into the difficult aspects of entrepreneurship, confronting common misconceptions.

Many people mistakenly believe that the entrepreneurial journey is easier for others while their own struggles are unique. By sharing raw and real stories, Koot aims to dispel this myth and foster a sense of solidarity among business owners.

A surprising theme underpinning success: Purpose before profits

One of the most impactful — and unexpected — themes Koot has identified after interviewing entrepreneurs is “purpose before profits.” This notion suggests that true entrepreneurs are driven by a deeper mission beyond mere financial gain.

For instance, Koot interviewed a health supplement company owner who prioritizes creating a healthier community over simply boosting sales figures. This purpose has worked to motivate him over all sorts of struggles. Another interviewee, a woman who founded a workwear company, started her business with the goal of making women feel comfortable and confident in their appearance and clothing — far beyond just turning a profit. Yet, she makes one. 

Research supports this concept of purpose-driven entrepreneurship. Studies have shown that businesses with a strong sense of purpose tend to outperform those solely focused on profits. For example, a study published in the Harvard Business Review found that companies with a clearly articulated purpose were more likely to achieve consistent revenue growth. Additionally, Deloitte’s Global Human Capital Trends report highlighted that purpose-driven companies often have stronger employee engagement, which in turn drives better business outcomes.

Koot’s exploration of this theme on his podcast serves as a powerful reminder to all entrepreneurs, including real estate agents, that a clear purpose can lead to more meaningful and sustainable success. By focusing on the broader impact of their work, real estate professionals can create lasting relationships with clients and contribute to the communities they serve.

The podcast’s influence on Koot

Hosting the podcast has profoundly influenced Koot’s approach to business and entrepreneurship.

Initially intended as a side project, the podcast has inspired Koot and motivated him to share what he’s learning more broadly. Despite selling his last companies in 2021 and becoming CEO of the British Columbia Real Estate Association in 2022, Koot remains connected to the entrepreneurial spirit.

Advice for aspiring entrepreneurs

Avoid the superficial success lure. When offering advice to aspiring entrepreneurs, Koot stresses the importance of avoiding the lure of superficial success. The entrepreneurial journey is often glamourized, especially in industries like real estate where success can sometimes appear effortless from the outside. However, true success requires dedication, hard work and a deep commitment to the craft of business. 

For real estate agents, this advice is particularly relevant as we’re bombarded with Million Dollar Listing and endless Instagram photos of real estate agents driving fancy cars or drinking expensive champagne. The allure of quick commissions and the perception of flexibility can overshadow the reality of what it takes to build a successful real estate business.

Koot advises agents to approach their work with the mindset of a business owner rather than just a salesperson. This means investing time in understanding the market, developing a solid business plan and continuously refining their skills.

Improve financial literacy. Moreover, Koot emphasizes the importance of financial literacy: “Financial literacy is crucial for real estate agents to thrive in their careers and maintain long-term success. Many agents overlook the importance of understanding their cash flow, tracking expenses and setting aside money for taxes and other obligations,” he notes.

Koot’s own admitted oversight on understanding his company’s cash flow is what led him to a variety of financial stresses. His podcast guests attribute part of their success to mastering financial basics, and he encourages agents to take note so they too can avoid common pitfalls like overspending during high-income periods or being caught off guard by tax bills.

The real estate market is constantly evolving, and agents must be prepared to navigate changes, whether they be economic downturns, shifts in consumer behavior or technological advancements.

By sharing raw stories of struggle and triumph, practical advice and insights on purpose-driven success, Koot offers a virtual support system for agents navigating the complexities of running their own businesses. In an industry where challenges can feel isolating, this podcast reminds you that you’re not alone.

In a bold move that signals a new direction for one of Canada’s leading real estate companies, Sutton Group has appointed James Innis as its new president and COO.

With a diverse background spanning investment banking, corporate development and technology ventures across Europe and North America, Innis is poised to bring a fresh, innovative approach to the traditional real estate brokerage model.

The new vision: Leverage company’s national reach to bring new solutions to agents and brokers market-wide

As an outsider to the real estate industry, Innis is working alongside industry veterans to bring new perspectives. “We’re combining external expertise with insider knowledge,” he explains, highlighting his intention to work within the industry to drive it forward. This collaborative approach, merging new ideas with established experience, could be the key to Sutton Group’s future success in a rapidly evolving market.

Innis’ vision for Sutton Group is clear: leverage the company’s national reach to distribute new solutions to agents and brokers across the market. “We see forward-thinking brokerages and agents moving from reactive to proactive in terms of their role,” he states. “This shift is inevitable as consumer demand for technology, transparency and actionable personalized advice in the real estate space continues to grow. We envision agents providing more value throughout the ownership process, not just during transactions.”

This shift towards a more comprehensive, value-added service model is at the heart of Innis’ strategy. He plans to leverage Sutton’s national presence to implement tools and technologies that will enable agents to offer ongoing support to homeowners. “Consumers are technology-forward and data-driven, but their largest asset (their homes) remains a black box. We see agents being in a good position to add value to their clients’ day-to-day lives,” Innis explains.

Competitive advantages and new opportunities in a traditional industry

One of the key advantages Sutton Group has, according to Innis, is its status as an independent, Canadian-owned company. This allows for greater flexibility and faster decision-making when it comes to adopting new technologies and partnerships. Innis hints at upcoming announcements, suggesting that Sutton is actively exploring opportunities across the “buy, build, partner spectrum.”

Innis’ international experience, particularly in the United Kingdom and Germany, has shaped his approach to regulation and innovation. “In Germany, I learned how strong regulatory engagement can spur growth,” he says. “We’re applying this same approach at Sutton Group, engaging proactively with real estate regulators and MLS boards, viewing the regulatory framework as a strength rather than a constraint.”

The new president’s background in finance and technology is evident in his plans for Sutton. He sees potential in open banking systems and how they could benefit the real estate industry, promising “lower costs and better products” for Canadian consumers.

Innis is also keenly aware of the challenges in implementing new technologies in a traditional industry. However, early signs are promising. “We’ve seen incredibly positive support for our brand refresh,” he notes. “And when we launched a new tool to help agents improve their business, the uptake and usage has been high.”

As Sutton Group embarks on this new chapter, Innis’ unique blend of financial acumen, technological insight and global perspective could be the catalyst the company needs to thrive in an increasingly digital and competitive landscape. By positioning Sutton as an innovator working within the industry rather than a disruptor, Innis aims to bring a growth and innovation mindset to the market while respecting its established structures.

With plans to announce new partnerships and initiatives in the coming months, the real estate industry will be watching closely to see how Innis’ vision for Sutton Group unfolds. If successful, it could set a new standard for how traditional brokerages adapt and thrive in the modern era.

The real estate sector is undergoing a transformative shift, driven by technological advancements collectively referred to as “proptech” (property technology). These innovations are reshaping how we live and work, emphasizing sustainability, data-driven decision-making and adaptability to new lifestyle preferences.

Insights from industry experts Philip Major, investor associate at R-LABS, and Lynette Keyowski, managing partner at NAR REACH Canada, shed light on the evolving landscape of proptech and its impact on both residential and commercial real estate.

Adapting to new lifestyle preferences

Post-pandemic, the rise of remote work has significantly altered residential and commercial real estate demands. Major observes, “Remote work can alleviate density and affordability issues in urban areas. On the commercial side, the winners will be those who can optimize unused spaces.” He cites LOFT, a company offering flexible office spaces throughout cities, as an example of how businesses can adapt to these changes without relying solely on central business districts.

However, converting commercial spaces into residential areas, although a popular idea, poses significant logistical challenges. “It’s not always feasible or profitable,” Major notes. Instead, there’s a trend towards luxury rentals and condominiums that incorporate amenities such as daycare centres, restaurants and other services directly into the building, catering to the evolving lifestyle preferences of urban dwellers.

Sustainability and energy efficiency

The drive for sustainability is becoming increasingly prominent in real estate, particularly in commercial properties. “LEED certification will continue to be a major trend, driven by tenant demand,” says Major. Tenants with strong Environmental, Social and Governance (ESG) initiatives are likely to prefer sustainable buildings, which can influence property values and development costs.

In this context, companies like Measurable, which tracks carbon emissions, are becoming essential. Developers are now considering the entire lifecycle of buildings, including end-of-life recycling options, to enhance the sustainability of projects.

Leveraging data and AI

Data-driven decision-making is revolutionizing real estate investment and management. Keyowski highlights a significant trend in the 2025 REACH Canada cohort: “AI is being leveraged to reduce costs, automate routine tasks and enhance backend processes.” This trend spans across the industry, supporting the personalization of real estate services, from property valuations to virtual tours.

Keyowski also mentions the “Netflixization” of real estate, where data is used to tailor user experiences. This trend makes the homebuying process more interactive and personalized, improving how consumers engage with listings and agents.

Major adds, “Commercial real estate will move slower to adopt AI compared to other industries, but this won’t stop AI from happening.” He highlights how companies like Hatch are acquiring AI-driven platforms such as Brainwave’s Mosaic to help developers understand zoning regulations and other complex data points. “It’s about pulling in multiple points of data, like zoning and school capacity, to centralize information and optimize property investments,” Major explains.

He also sees potential in AI democratizing the development process: “It could reduce costs and make the process more accessible, although the extent of this democratization remains to be seen.”

Addressing housing affordability

Affordability remains a critical issue in the real estate market, and alternative financing options are emerging as a solution. Keyowski notes, “Along similar lines, we have been seeing a surge in the number of ‘alternative financing’ options come to market. With affordability at all-time lows, these are just beginning to hit the radar of the industry but aren’t anywhere close to top-of-mind for the average consumer.”

These tech-enabled solutions aim to keep borrowing and administrative costs low, offering diverse options from Halal mortgages (Manzil) to creative down payment financing (Ourboro) and leaseback home purchases (Requity Homes).

Under-the-radar innovations

Despite widespread technological advancements, some tools remain underutilized by the broader public. Keyowski explains, “There are many backend tools, like online MLS systems and showing suites, that facilitate seamless real estate transactions.” These tools often go unnoticed by consumers but are crucial for the industry’s efficiency.

Moreover, there are innovative solutions not yet widely adopted but with the potential to streamline the homebuying process. Keyowski points to digital mortgage platforms and offer transparency tools, which can make real estate transactions faster and more transparent. “These tools expedite the process, but the industry is often reluctant to adopt them,” she adds.

Challenges and opportunities for traditional real estate players

Integrating new technologies into traditional real estate models presents challenges. Keyowski emphasizes the importance of understanding one’s value proposition: “Real estate is a relationship business. The clearer you are about your value, the more efficiently you can adopt technology that enhances that value.”

AI, while promising, introduces both opportunities and uncertainties. “On one hand … AI is allowing more to be done with less (and in less time). Real estate is about relationships … but it’s also about volume. This has the potential to create more competition among agents: for eyeballs, for listings, for differentiation, for partnerships and more. The ability for agents to reach their audiences faster and more effectively could impact business models and market share,” Keyowski notes.

However, the industry’s slow pace of change and potential regulatory hurdles may temper AI adoption. “On the other hand, there is no knowing (yet) how the space will be regulated, if at all. As it always does, this could certainly impact the rate of adoption — or even temper adoption until those frameworks are clearer. This is not an industry that moves fast at the best of times!”

Consumer readiness for change

One significant shift is the consumer’s readiness for digital transactions. A decade ago, some consumers were hesitant to put their credit cards online or engage in online banking. Now, it’s considered standard. The consumer in real estate has similarly evolved, having become extremely comfortable transacting digitally where there’s an element of immediacy. As Keyowski observes: ‘’I see what I want, I can access as much information as I deem necessary and I can make a decision and execute in almost everything.”

However, real estate transactions remain cumbersome and opaque. Keyowski illustrates this with a common scenario: “As an example, what the heck DOES happen to that agreement for purchase once you’ve signed it and “sent it back” to your agent? Who sends it to my mortgage broker? How’d the lawyer get involved? Didn’t they say you’d see the deal back in two days? It’s been a week …”

Proptech solutions are addressing these issues by providing transparency and efficiency throughout the transaction process.

Embracing the future of real estate

The proptech revolution is fundamentally changing the real estate landscape. From optimizing unused spaces and enhancing sustainability to leveraging data and AI for better decision-making, these technologies offer significant benefits. However, the industry’s traditional players must navigate challenges related to technology adoption and value proposition clarity to stay competitive.

As Major aptly puts it, “Darwinism is alive and well in real estate.” Those who adapt and innovate will thrive in this new era, while those who resist change may find themselves left behind. The future of real estate lies in embracing proptech to meet evolving demands and create more efficient, sustainable and personalized experiences for all stakeholders.

While Mother’s Day has passed, the celebration of motherhood should extend far beyond a single day of recognition. Being a mom is a 24/7 commitment, shaping not only the lives of our children but also influencing the trajectory of our careers and personal growth.

In a society where the roles of mothers are often undervalued or underestimated, it’s essential to highlight the remarkable achievements and insights of women who successfully navigate the dual responsibilities of motherhood and career. Chris M. Guérette, CEO of the Saskatchewan Realtors Association (SRA), is a strong testament to the power of perseverance, resilience and self-awareness in the pursuit of both professional success and fulfilling motherhood. Here’s what she had to say about her journey.

Natalka Falcomer (NF): Many women find it challenging to strike a balance between advancing their careers and being present for their children. Can you share any strategies or insights you’ve discovered that have helped you navigate this delicate balance in your own life?

Chris M. Guérette (CMG): That is a pretty big life lesson … not many women are prepared for the deep sense of guilt we can feel once we become mothers. I’ve seen many parents in general experience a sense of guilt of not being good enough or with a deep sense of failing, but women generally seem to experience the guilt and judgment more intensely that comes with what roles and expectations we have which are given to us.

I had to develop self-awareness around my roles and expectations to discover that while I believed they were mine, they weren’t me. They were given to me and while I accepted them at the time, it’s not the same as defining my own expectations. And no one else was going to define the role and expectations relating to my children as well as I could.

That was the moment of empowerment. Others could judge me all they wanted for a perceived notion of imbalance or what my role should be, but I knew best. Recalibrating expectations and really defining what we are and are not, and why we do certain things, becomes extremely liberating. And the beauty of all that is you can re-adjust your “balance” at any time — you control it. So, sometimes I balance and sometimes I don’t. Life balance is such a big notion. Sometimes it’s just about finding balance in small moments when imbalance takes over the bigger moments.

NF: Motherhood often coincides with critical points in one’s career. How have you managed to pursue and achieve career milestones while also fulfilling your role as a mother? Are there specific choices or compromises you’ve made that you believe have positively impacted both areas of your life?

CMG: Does it though? Or are we simply afraid of missing out and we think it coincides with critical points we won’t get back? I’d like to think I have critical points in my career for the entire journey. Achieving milestones won’t stop. I hope each milestone is better than the last. 

“I know I am a better human, a better leader, a more effective community builder and a better colleague because I am a parent. I am so thankful for how that has helped me in my career.”

 

– Chris M. Guérette, CEO, Saskatchewan Realtors Association

Compromise is part of life. Have I missed out on some opportunities because of being a mother? 100 per cent. Have other doors opened because of that? 100 per cent. Have I chosen to focus on the potential and growth mindset as opposed to the “what about me” mindset? 100 per cent. I know I am a better human, a better leader, a more effective community builder and a better colleague because I am a parent. I am so thankful for how that has helped me in my career.

NF: Building a successful career while raising children often requires a strong support system. Could you share the role that support from family, friends or colleagues has played in your journey? Have there been specific instances where this support proved crucial in helping you manage the dual responsibilities of work and motherhood?

CMG: Having a support system is crucial. The family I had was five provinces away, so I focused on my “chosen family”. Those people were gold. And when worlds collided and support was short, my kids came with me. Gasp! I can sense the judgment. If that’s you, this is where the card you’re dealt instructs you to immediately go back to question number one to read again and reflect. Do not pass go. Do not collect $200.

For the rest of you, let’s continue. My kids have attended many, many board meetings. They’ve attended many meetings, media interviews and fundraising events; they’ve door-knocked and they’ve volunteered. They’ve inadvertently participated in many conference calls. There were certain moments when I knew the mix of both worlds — motherhood and career — was not possible. Those moments will always happen. That’s part of the journey.

NF: Every journey has its challenges. Can you reflect on a particular challenge you faced as a working mother and how you overcame it? What lessons did you learn from that experience, and how did it shape your approach to balancing career and motherhood?

CMG: There was a period in my life when I was a single mom. (Let’s take a moment to thank single moms out there — they are superheroes.) For those years in my life, while some of the most challenging, anxiety-filled and exhausting moments I experienced, they were also some of the most empowering and I would not wish my journey to have gone any other way.

I used to tell myself that some days I needed a superhero cape to balance it all. I didn’t know how I was going to push through, so telling myself this was a superhero kind of day meant I had to dig deep because I felt like only a superhero could get through this. And so those days, I would tell myself I needed to wear my cape. It eventually became a language I could speak out loud about and that I could eventually talk to the kids — who were very young — about too. And over time, we were eventually able to laugh about it and use that language together. They would sometimes tell me that I forgot to wear my cape if I failed or made a mistake on something.

Isn’t that great? Talking about failures and mistakes as a unit because we care about each other. And is that not how we approach our careers? We build the capacity of our teams, of our communities, of our businesses. We help define mindsets and challenges and look for solutions. We help others wear their superhero capes until we can all find more balance.

NF: Self-care is vital, especially for mothers juggling career and family. How do you prioritize self-care in your routine, and are there specific practices or rituals that you find particularly beneficial? How do these self-care strategies contribute to your overall well-being and effectiveness in both your professional and personal life?

CMG: I fail hard here. I try different things, some stick for a while, some don’t. One regular activity that sticks out and has helped a lot is key friendships I intentionally invest in because they make me better. One group meets every other month over good food and drinks. We are loud and we battle opinions (which we call riots). Most importantly, we have a tradition of sharing our wins which consists of a roundtable not to vent, but to focus on the growth. We force each other to find wins, even if small, that happened since our last meeting. We share them and the group cheers them all.

The other is a small group of bold, career-focused executive moms. We’ve gravitated towards each other over the years, unintentionally through politics and community-building, and the amount of inspiration and energy I get from our time together powers my mindset to be stronger in both my career and family life.

Redefining balance and embracing growth

Guérette’s journey as a mother and CEO offers invaluable lessons for women navigating the complexities of career and family life:

1. Reclaim your narrative. Define your own expectations and embrace the power to recalibrate your balance at any time.

2. Value compromise. Recognize that compromise is part of life, but also acknowledge the doors that may open as a result of prioritizing family.

3. Build a support system. Lean on chosen family and colleagues, and don’t hesitate to integrate family into professional spaces when necessary.

4. Embrace challenges. Approach challenges with a growth mindset, knowing that each obstacle is an opportunity for personal and professional development.

5. Prioritize self-care. Invest in meaningful friendships and supportive networks that contribute to your overall well-being and effectiveness.

By internalizing these lessons, mothers can navigate their unique journeys with resilience, confidence and an unwavering commitment to both personal and professional fulfillment.

The journey of motherhood is a profound one, marked by moments of joy, growth and unexpected challenges. I know this as I speak from experience. The arrival of my new family member heralded not only a shift in daily routines but also a profound evolution of my aspirations and priorities.

For Janice Myers, CEO of the Canadian Real Estate Association (CREA), motherhood catalyzed a journey of self-discovery and professional growth. In a world where societal norms often dictate that motherhood should supersede professional ambition, Myers’ story challenges these preconceptions, offering hope and inspiration to working mothers everywhere.

As we celebrate Mother’s Day and honour the invaluable contributions of mothers in the workplace, Myers shares her insights and experiences, shedding light on the delicate balance of career aspirations and familial responsibilities. Through her journey, she exemplifies the resilience, determination and unwavering spirit of working mothers — proving that with faith, support and determination, anything is possible.

Let’s delve into Myers’ reflections on motherhood and its huge impact on her career journey, along with her valuable insights and wisdom.

Natalka Falcomer (NF): You’ve undoubtedly encountered numerous career opportunities and challenges throughout your journey. How has motherhood influenced your approach to seizing these opportunities?

Janice Myers (JM): “Motherhood has been a guiding force in my career decisions. It has taught me that everything is a choice, and timing is paramount. There have been instances where career opportunities presented themselves, but upon careful analysis of their impact on my family, I realized they weren’t the right fit for us at that moment. And that’s okay. I’ve learned to have faith that other doors will open when the time is right.

On the flip side, motherhood has also emboldened me to pursue opportunities even when I may not feel 100 per cent qualified or ready. Women often hesitate to take the next career step because they feel they need to check every box. But sometimes, you just have to figure it out as you go along.”

NF: Balancing the demands of family and career can often feel like an uphill battle, leading to stress and self-doubt. What strategies have you employed to navigate this challenge?

JM: “The biggest challenge for me has been the constant juggling act, feeling pulled in so many directions. It’s easy to fall into the trap of thinking that you’re not doing any of it well. But I’ve learned to recognize that achieving balance is an ongoing process, and what works for me may evolve over time.

Prioritization has been key — identifying what matters most in both my career and family life helps me make informed decisions and allocate my time effectively. And while I strive to stay in control, I’ve also learned to embrace the unpredictability of life’s roller coaster ride.”

NF: Delegation and support systems are crucial for working mothers. How have you leveraged these resources throughout your career?

JM: “I’ve been incredibly fortunate to have a supportive partner and family who have played instrumental roles in my journey. When my children were young, my husband’s home-based business allowed him to be present when needed, providing invaluable support.

Additionally, I’ve learned the importance of delegation — both at work and at home. As women, we often feel the need to do it all ourselves, but sharing responsibilities alleviates pressure and allows us to focus on what truly matters.”

NF: Reflecting on your journey as the first female CEO of CREA, what lessons or insights do you hope to impart to other women navigating the complexities of motherhood and career advancement?

JM: “One particular moment stands out vividly in my memory — a moment that underscored the delicate balance of seizing opportunities while managing their impact on loved ones. It serves as a reminder that no matter how meticulously we plan, external forces can disrupt even the best-laid plans.

My hope is to inspire other women to pursue their ambitions while navigating the complexities of family life, knowing that with determination and support, anything is possible.”

NF: You mentioned a significant moment in your journey — attending the York Executive Program at the Schulich School of Business. Can you share more about how this experience impacted you?

JM: “Absolutely. Attending the York Executive Program at Schulich was a dream come true for me, but it came with its own set of challenges. I vividly remember the internal conflict I faced when considering the program. On one hand, the opportunity for professional growth was undeniable. Yet, on the other hand, the thought of being away from my children for an extended period weighed heavily on my mind.

Despite my hesitations, my parents and husband rallied behind me, urging me to seize the opportunity. Their unwavering support gave me the courage to embark on this journey, leaving behind carefully written bedtime notes and hidden presents for my children to discover in my absence.”

NF: How did you navigate the separation from your family during the program, and what did you learn from that experience?

JM: “Throughout those long weeks, maintaining regular contact with my family became a lifeline. Despite the distance, our connection remained strong through phone calls and heartfelt conversations. However, the separation still felt like an eternity, and I grappled with feelings of guilt and longing.

Yet, upon my return, I was greeted with overwhelming excitement — a warm reminder of the unwavering love and support that surrounded me. That experience taught me a valuable lesson about the delicate balance of seizing opportunities while managing their impact on our loved ones.”

In the broader context of workplace dynamics, Janice Myers’ narrative underscores the imperative to recognize and celebrate the invaluable contributions of mothers as productive contributors. Rather than viewing motherhood as a hindrance to professional success, Myers’ story highlights the notion that motherhood enhances one’s capacity for leadership, resilience and innovation.

By embracing a culture that values and supports working mothers, organizations within and outside of real estate can harness the diverse perspectives and talents they bring to the table, fostering environments where both personal and professional growth thrive.

As we honour mothers this Mother’s Day and beyond, let’s champion policies and practices that empower mothers to excel in their careers while nurturing their families, recognizing their integral role in driving progress and prosperity in and out of the workplace.

In a landmark development, the National Association of Realtors (NAR) recently settled a series of commission lawsuits, agreeing to pay $418 million USD in damages and pledging to overhaul its rules regarding real estate agent commissions.

This settlement, prompted by legal claims alleging artificially inflated commissions, has sparked widespread speculation about its potential impact on housing affordability and market dynamics.

While proponents hail it as a game-changer that could lead to substantial cost savings for homebuyers and sellers, skeptics remain cautious, questioning whether it will truly translate into lower housing prices. As the real estate industry braces for change, examining the nuances of the settlement and its implications becomes paramount.

High-profile endorsers

The settlement has drawn enthusiastic endorsements from high-profile figures like President Joe Biden and former Treasury Secretary Larry Summers, who suggest it could lead to significant savings for homebuyers and sellers, potentially up to $10,000 per transaction.

We’ve seen similarly themed claims made even in Canadian media. Advocates in the United States and Canada argue that the elimination of standard commission structures could result in more competitive pricing among real estate agents, leading to lower transaction costs for consumers. Summers even suggests that breaking the “realtor cartel” could save U.S. households $100 billion over time, implying substantial long-term benefits for affordability.

Gradual commission reductions “unlikely to happen”

Getting rid of the decades-old commission system, which is criticized for inflating costs, by eliminating compensation details on MLS platforms could lead to more negotiation power for sellers, potentially driving down commissions.

Economists predict gradual reductions in commissions, potentially down to 4-5 per cent over time, with the majority of savings captured by sellers. This, however, is unlikely to happen according to NAR and those with years of experience understanding how sellers and buyers determine the value of a home.

Lower housing prices not certain — here’s why

Despite the optimism, experts caution that the settlement may not immediately translate into lower housing prices. Critics argue that sellers are unlikely to lower prices simply because transaction costs decrease. NAR’s response suggests that commissions were already negotiable, indicating that lower commissions may not necessarily lead to reduced housing prices.

In Canada, for instance, buyer agents and seller agents already offer a range of commission and compensation structures and, notwithstanding this reality, prices continue to rise across the country. Additionally, uncertainty remains about how the changes will ripple through the market and who will ultimately benefit from lower commissions.

NAR’s assertion that commissions are driven by the market and not the cause of the affordability crisis raises doubts about the direct impact on housing prices. Economists highlight the complexity of determining who benefits from lower commissions, particularly in different market conditions such as seller’s markets. For example, as many real estate agents can attest to, a seller wants their home to sell for a specified amount not because of a cold rational calculation, but because their house is the best house in the neighbourhood!  

Gradual adjustment to settlement ramifications, not quick seismic shifts

While the settlement sparks discussions about potential changes in Canada, it’s crucial to manage expectations. Real estate professionals have long since offered reduced commissions or flat fee services, with little impact on housing prices, suggesting a gradual adjustment process to ramifications of the NAR settlement (if any at all in the near term) rather than immediate seismic shifts.

The settlement may encourage broader adoption of innovative pricing models and increased transparency in services provided by real estate agents. However, overblown expectations about the immediate impact on housing prices should be tempered, as broader challenges such as housing supply shortages and regulatory barriers remain significant factors in housing affordability.

Fear and uncertainty drive varying interpretations of the settlement’s implications, highlighting the complexity of its effects on the real estate market. It’s this very complexity that makes me believe that those claiming significant changes or no changes at all will both be wrong; rather, we’ll see a slow evolution in how we do business with likely little impact on housing prices. 

Nonetheless, the prudent real estate agent won’t wait around for these changes. Exploring alternative pricing models and emphasizing the value they provide to clients is the best way to be part of the future. 

In response to a flurry of commission-related lawsuits causing upheaval, the National Association of Realtors (NAR) recently brokered a groundbreaking settlement, pledging reforms and financial restitution.

Valued at $418 million over four years, the agreement promises “sweeping” changes to the process of buying and selling homes in the United States. At the heart of this settlement lies NAR’s decision to no longer mandate listing agents to determine compensation for buyer brokers on MLS, aiming to enhance transparency and fairness in real estate transactions. 

This shift means that compensation for buyer agents will no longer be publicly displayed in multiple listing services (but can be available on brokerage websites or non-MLS sites). While many non-industry journalists claim this settlement will herald a dramatic new era of negotiation dynamics between agents and clients, this remains to be seen as we unpack the details of the settlement. 

Delving deeper: Understanding the impact of the settlement on the industry

Despite the appearance of resolution, the settlement has left a sour taste for many industry insiders, according to commentator Rob Hahn. Critics argue that the terms of the settlement, particularly NAR’s perceived concession, fall short of providing a clear victory.

Hahn suggests that NAR’s agreement, while seemingly substantial, exposes the organization to disproportionate liability compared to other defendants. With NAR bearing a significant portion of the damages and instituting extensive reforms, concerns linger regarding the long-term ramifications for the industry.

Furthermore, the settlement has notable exclusions.

First, it only covers over one million NAR members, state and local realtor organizations — the settlement specifically leaves out certain brokerages that continue to engage in litigation or have reached their own settlements, and it excludes non-NAR member MLSs as well as brokerages with transaction volumes exceeding $2 billion in 2022.

Second, the agreement doesn’t prohibit buyer agents from collecting fees and it doesn’t restrict where selling agents can advertise buyer agent fees. In other words, buyer agents can still receive compensation, and real estate agents can continue to advertise buyer agent compensation on various platforms, including non-NAR member websites like Zillow, OJO and Realtor.com. This aspect raises questions about whether the lawsuit will truly instigate significant changes.

Brokerage responses to the settlement

In the aftermath of the settlement, the real estate industry faces divergent responses to the ongoing legal saga. Some brokerages view the settlement as a means to mitigate legal risks and establish stability. Companies like Anywhere Real Estate and Re/Max have opted for compromise, settling lawsuits and agreeing to adapt business practices.

Conversely, a faction led by HomeServices of America remains steadfast in resisting the settlement, advocating for continued litigation and defending existing norms. Amid these opposing viewpoints, a group of reformers champion proactive measures to tackle industry challenges, aligning with the reforms outlined in the settlement.

The reforms advocated, however, would not be viewed as revolutionary to real estate agents in Canada. Rather, reforms such as requiring that buyer representation agreements (BRAs) are signed and that real estate agents no longer claim that “buyers don’t pay” for the agents’  services is standard practice in Canada. 

Anticipated changes in practice

Considering the settlement terms and existing practices in Canada, it remains uncertain what substantive changes might occur if a similar settlement were to arise in Canada. Agents in this country are already required to discuss compensation with clients, typically through BRAs. 

However, should sellers cease offering compensation to buyer agents en masse, agents would need to articulate their value to buyers, a requirement already present in Canadian BRAs. So, unless significant new brokerage models emerge in the U.S. that influence Canadian consumer habits and demand, the impact of such a settlement on Canadian real estate practices may be minimal.

As the dust settles on the NAR settlement, many claim that we’ll see profound changes. It’s my opinion that Canadian real estate agents and brokerages should take this claim with a truckload of salt, let alone a grain. Nonetheless, it’s prudent that brokerages and real estate agents adapt to evolving commission structures and negotiation norms, while also sharpening their ability to articulate their value to the consumer — something that we should already be doing. 

While real estate agents inherently function as salespeople, their responsibilities extend beyond mere transactions, encompassing rigorous adherence to FINTRAC compliance and the meticulous drafting of legally binding agreements.

Drawing from my experience as a broker of record, lawyer and former realtor manager, I observed an alarming number of inadequately formulated agreements that left the buyer, seller or both parties vulnerable to substantial legal complications. Consequently, prioritizing legal precision becomes paramount.

In pursuit of a deeper understanding of the challenges faced by realtors, I engaged in a discussion with Benjamin Berry, a seasoned lawyer and co-founder and chief legal officer of Doormat, a company using technology to simplify the real estate closing process.

Our conversation delved into the common mistakes made by real estate professionals and explored effective strategies for minimizing risks, safeguarding both the realtor and, more significantly, their clients.

Natalka Falcomer (NF): What are common legal pitfalls in Agreements of Purchase and Sale?

Benjamin Berry (BB): Occasionally, realtors insert clauses with insufficient details that aren’t fully fleshed out, leading to complications in scenarios like holdbacks for repairs.

Thankfully, realtors generally do not make many legal mistakes in drafting Agreements of Purchase and Sale, but occasionally they will insert a new clause for a client without fully considering all the potential directions in which the situation could unfold.

For example, if a purchaser wants to hold back funds until a furnace is repaired, what happens if the furnace can’t be repaired? Can the seller replace it with a used furnace, or does it have to be a brand-new furnace? If the furnace can be repaired, who decides whether the repair is adequate? Does a neutral third party have to make an inspection and if so, who chooses the inspector? How long can the holdback be held for? Is the lawyer holding the funds entitled to charge legal fees for holding the funds and if so, who is responsible for paying those fees? Would it make more sense to simply deduct the cost of a new furnace from the purchase price? 

It’s important to consider questions like these when drafting an agreement. This doesn’t necessarily require legal knowledge, though it can be helpful to consult a lawyer for advice.

NF: How can realtors avoid legal mistakes in Agreements of Purchase and Sale?

BB: My suggestion for any non-standard clauses is to run them by a lawyer before using them, as the lawyer enforcing the clause may have considerations a realtor wouldn’t be aware of. Some lawyers may review these clauses for free, while others would do so only if they are representing the person you’re asking them to review the contract for. I would encourage realtors to seek out relationships with lawyers, so they have a trusted person to turn to when they need advice on a file.

In practice, I know that a lawyer may not always be available to review or draft a clause on a short turnaround, so I would encourage realtors to carefully consider what could go wrong with a situation when drafting a clause, what each party is responsible for and how the situation can be resolved regardless of how it unfolds.

NF: What trends are impacting real estate transactions today?

BB: We’re seeing big changes from a few years ago when interest rates were lower, which generated greater demand from purchasers, giving sellers more power to push for unconditional agreements.

There are now fewer bidding wars, allowing buyers to be more careful in drafting offers with conditions for financing and inspection. I think this results in less volatility, where buyers are better able to determine whether they can afford their purchase before they fully commit and whether the property is as good as advertised, or as good as it looked when cleaned and staged. I think we’re seeing less buyer’s remorse as a result, and probably fewer lawsuits resulting from buyers’ inability to close due to lack of funds, or lawsuits against sellers for failing to disclose defects.

On the seller side, I think there has been some reticence to sell unless the owners absolutely have to sell because many people were (and currently still are) locked into low interest rates from the pandemic era. Many of those low-interest mortgages will be maturing in the next year or so, meaning homeowners may decide there’s less downside to moving since they’ll have the same interest rates regardless. Most people who sell will also have to buy somewhere else, so this may result in a busier market in the near future.

NF: Are agreements falling apart and if so, why?

BB: With more conditional agreements, there are more uncompleted deals due to conditions not being met. This frustrates sellers but results in fewer cases of buyers reaching the closing date without funds.

Unconditional agreements were good for sellers as long as the buyer could actually complete the transaction they agreed to, which in some cases they could not. We’re seeing fewer requests for extensions, hopefully less time wasted on deals the buyer was never able to complete and more deals completed by committed, satisfied buyers.

NF: What about refinancing? Are homeowners opting for this instead of selling? 

BB: When interest rates dropped during COVID, we saw a lot of people choosing to refinance to take advantage of the lower rates. Since interest rates have risen, homeowners are holding onto their current interest rates.

I think many people in this situation will have to renew sometime in the next year or so, resulting in a surge of refinancing, particularly with private lenders who do not have as strenuous conditions for qualifying. Some people who need to refinance may instead choose to sell and buy somewhere else, which might liven up the market.

NF: Any additional insights on the current real estate landscape?

BB: Most of the agents and mortgage brokers I speak to seem to be more positive about the market this year, with expectations of growth for some of the reasons I mentioned. I think the pandemic market was a bit of an anomaly, but things will fall somewhere between that market and the one we’ve seen for the past year or so.

The takeaways

When crafting Agreements of Purchase and Sale, realtors should prioritize meticulous attention to detail, especially when incorporating non-standard clauses. The key is to anticipate potential scenarios and ramifications, avoiding vague or insufficiently detailed provisions. Essential considerations include outlining specific terms for holdbacks, repairs or other contingencies, along with clear guidelines on dispute resolution.

Collaborating with legal professionals during the drafting phase is strongly advised, ensuring that the agreement aligns with legal standards and safeguards the interests of both buyers and sellers. Realtors should view the agreement as a comprehensive roadmap, addressing possible twists and turns to provide clarity and minimize the risk of legal complications down the line.

By adopting this proactive and precision-focused approach, real estate professionals can enhance the integrity of their transactions and foster trust with clients.

As a broker, I share the frustration with many of you regarding the myriad of compliance requirements placed upon brokers, managers and real estate agents — from how to record our deals to finding out if one of my real estate agent’s clients is a cousin of someone who is a politician somewhere in the world. And this year, it will get worse. 

In a recent interview with Friedrich Klaus, co-founder of Illuminai Intelligence Corporation, I gained valuable insights into the evolving world of FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) compliance and the challenges faced by brokerages in Canada. Klaus shed light on the significant changes introduced in 2021, the common mistakes made by brokerages and what the future holds with compliance requirements.

The shift in FINTRAC compliance requirements

According to Klaus, the most notable change in FINTRAC compliance is the shift in responsibility from agents to managing brokers coupled with the new requirement of “ongoing monitoring”.

As of 2021, the managing broker and the business now bear the risk of substantial fines if they fail to comply with five major requirements of the updated Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA):

• Implementing a compliance program
• Reporting transactions (filing suspicious transaction reports to FINTRAC)
• Keeping records about high-risk clients/transactions
• Knowing your client/ongoing monitoring
• Applying ministerial directives

The ongoing monitoring requirement is particularly challenging without technology, with labour-intensive and cumbersome spreadsheets the only available resource available to brokerages.

Klaus emphasized that Iluminai’s studies estimate a staggering 99.5 per cent of Canadian brokerages are almost totally non-compliant with the 2021 update to the PCMLTFA when it comes to ongoing monitoring. “There is no other way to comply, without the benefit of my platform, then (with) a spreadsheet a mile long and a mile wide, with a full-time employee doing 45 minutes to one hour of research per customer,” Klaus says.

Common mistakes made by brokerages

Klaus pointed out that many brokerages make the mistake of assuming FINTRAC’s previous “soft touch” will continue. He says, “Canada’s international reputation as a haven of weak enforcement of AML laws has forced regulatory bodies to take action. Unfortunately, a lack of financial resources available to enforcement agencies and regulators because of a decade of underfunding and broken promises by the Liberal Party of Canada means that the burden of enforcement falls upon small businesses.”

Real estate, being a prime destination for laundered funds, means brokerages must adapt or change their business models to comply with the increasingly stringent regulations that will only become more challenging in the future.

Future compliance issues and requirements

Looking ahead, Klaus predicts that the relationship between FINTRAC and the real estate sector will mirror FINTRAC’s relationship with the banks, requiring accelerated and real-time suspicious transaction reporting, and heightened transactional scrutiny by brokerages. 

Improved cross-governmental information sharing and increased access to free governmental data will raise the expectations of compliance. Real estate professionals will need to actively detect fraud and adapt to the changing landscape of anti-money laundering regulations. Agents and brokerages will need to adopt new tools or be drowned in “labour cost or fines … Pick your poison,” Klaus explains.

Troublesome issues for brokerages

In a recent case, FINTRAC imposed a $132,000 penalty on Global West Realty Limited, underlining the intensified scrutiny on brokerages. The 2021 examination revealed non-compliance issues, including a lack of appointed compliance oversight, absence of written policies and neglect of ongoing compliance training.

In a recent speech at ACAMS, a global meeting for the anti-money laundering community, Sarah Paquet, CEO of FINTRAC, emphasized FINTRAC’s commitment to ensuring businesses meet obligations under the PCMLTFA. This case exemplifies a more assertive enforcement approach, using penalties to drive behavioural change.

Unclear legislation and guidance compound challenges for brokerages, notes Klaus. Some existing tools in the market, designed for agents, may lack a compliant “ongoing monitoring” solution, leaving brokerages susceptible to audits as FINTRAC assesses ongoing monitoring programs as part of their audits moving forward.

In 2022-2023, FINTRAC issued six notices of violation, totaling $1,113,569. With the real estate sector facing heightened scrutiny, brokerages must take proactive steps to navigate evolving compliance challenges and avoid substantial penalties.

Mitigating risk and starting the compliance journey

Given the significant fines, aggressive FINTRAC compliance enforcement and the political temperature to blame money laundering as a source of housing unaffordability, Klaus advises brokerages to start their compliance journey now.

What’s more, while technology is available, brokers are advised to truly understand what the technology offers and what it doesn’t. Klaus often encounters brokers who misunderstand the difference between Illuminai and what its competitors offer: “Rival platforms (to Illuminai) are akin to going to a restaurant where you receive a bill at the end, but you still have to handle the entire cooking process, serve the meal and clean up afterward.”

In contrast, Iluminai’s platform goes beyond just filling out the necessary forms — which is what Illuminai’s competitors do. Rather, Illuminai actively assists real estate brokers in achieving compliance with almost all of the ongoing review aspects of the PCMLTFA. Iluminai provides a unique and specialized service, ensuring a seamless and efficient compliance experience for the real estate industry in Canada.

Klaus emphasizes the urgency for brokerages to take proactive steps toward compliance. Whether through Iluminai’s platform or other means, adapting to the changing regulatory landscape is crucial for the real estate industry’s role in the anti-money laundering world. The time to act is now.

In a recent legal development, another lawsuit — Kevin McFall v. Canadian Real Estate Association et al — has been filed against various real estate boards, franchisors and brokerages, echoing last year’s Sunderland case. In an exclusive interview with competition law expert and lawyer David Dunbar, we delve into the details of the McFall lawsuit and explore its implications for the real estate industry.

What McFall v. Canadian Real Estate Association et al is about

Natalka Falcomer (NF): Tell me about the McFall lawsuit.

David Dunbar (DD): The fundamental structure and arguments of the McFall lawsuit are similar to the Sunderland lawsuit. The core complaint revolves around Section 45 of the Competition Act, alleging price-fixing, and seeking damages under Section 36. At its core, the McFall case is essentially the same as Sunderland but presented somewhat differently. I guess you could say it’s the same house, but laid out differently. 

Reason for the lawsuit

NF: Why file this lawsuit given that it’s the same as the Sunderland lawsuit?

DD: The McFall lawsuit is against more players, many of whom were not named in the Sunderland case. It appears that in McFall, the plaintiffs are casting the net wider to capture more “conspirators” who were not included in the Sunderland case.

What’s more, the McFall statement of claim appears aimed at addressing issues that arose in the Sunderland case when the court dismissed some claims and removed the franchisors as defendants. In other words, in McFall, the plaintiffs are refining their arguments in what looks like an attempt to bring back certain groups (like franchisors) that were previously excluded as defendants.

No new arguments

NF: Are there any new facts or arguments being made that Sunderland failed to address?

DD: I wouldn’t say there were new facts. Both cases focus on the real estate association rules, specifically the way broker fees are structured, and the anti-competitive effects of those rules. There does seem to be a refining of the arguments raised in Sunderland to substantiate their position that these rules and their anti-competitive outcomes amount to price fixing under the Competition Act. 

Inspiration from Sitzer decision?

NF: Is it possible that the Sitzer decision that required real estate brokerages and real estate boards to pay $5.36 billion in damages for the same “conspiracy” claimed in Sunderland inspired the McFall lawsuit?

DD: There is potential influence from U.S. cases, but our case law and the legal theories underpinning Canadian competition law are different. Having said that, the plaintiff’s decision to include various boards and franchisors could or could not be linked to the perception of success in similar U.S. cases.

I would point out some important differences between Canada and the U.S. in this regard. The U.S. case was a jury trial, and that’s not available here. As well, McFall sticks with a pure criminal approach and doesn’t base itself on anti-competitive abuse of dominance arguments as you see in some of the American cases.

McFall’s chances of winning

NF: What are the odds that the courts will side with McFall and find a conspiracy?

DD: There are three big challenges faced by this lawsuit. We’ve already seen one of those problems in the Sunderland case when Justice Crampton threw out the price-fixing allegations, just leaving the claim based on “control” of pricing.

Proving a criminal conspiracy for price fixing requires evidence of competitors getting together to do just that and, just like in Sunderland, I would expect the defendants to say there isn’t substantial support for this in the current case. In my experience, to bring a criminal conspiracy case, prosecutors ideally want some kind of a smoking gun or concrete evidence of an agreement among competitors to fix prices — usually, that’s a conspirator who has decided to cooperate with law enforcement and testify.

This direct evidence seems to be lacking in both the Sunderland and McFall lawsuits.

The three big challenges

DD: Despite efforts in the pleading to describe the conspiracy differently, this case looks like it might face some of the same hurdles as Sunderland. Similar to the Sunderland case, there are three big challenges facing McFall:

1. Problems related to direct evidence of competitors agreeing to conspire.

2. The regulated conduct defense, which comes into play when conduct that might otherwise breach the Competition Act is authorized or at least implicitly allowed by other legislation. Brokerages and agents may well invoke this defense since they adhere to provincial regulations governing their compensation practices.

Furthermore, these professionals are obligated by legislation in all provinces nationwide to showcase homes irrespective of the commission offered. Even if steering exists, that can be seen as unethical and prohibited behavior in a regulated system, rather than evidence of a criminal conspiracy.

3. Anyone who has bought or sold a home knows that commissions can always become a factor in the overall negotiation of the house price and are often used as a tool during the negotiation process. Buyers can always ask sellers for a reduction in the price of the home to offset their having to pay the commissions.

What’s more, seller and buyer representatives will use their fees to “close a deal” by offering rebates or reducing their cut. So, it may be harder than it first appears to establish that buyers are suffering economic harm caused by the current commission structure.

Competition Act changes

NF: What about the recent Competition Act changes that allow private parties to bring lawsuits based on abuse of dominance? 

DD: Interestingly, McFall was brought as a criminal conspiracy case and not an abuse of dominance case. Plaintiffs have that option now, following changes that were made to the Act last year. I don’t know what the reasoning was for these particular plaintiffs, but generally speaking, a private abuse of dominance case would be novel and therefore uncharted territory.

As well, abuse of dominance cases can often require expensive economic experts and significant resources to prove anti-competitive effects. Without getting too technical, there are some legal restrictions on how much a defendant can be ordered to pay at the end of an abuse of dominance action that might not apply in a case based on the commission of an offence under the Competition Act.

What the real estate industry should be aware of

NF: Anything that brokers, agents or associations should be concerned about?

DD: These lawsuits may trigger consumer interest and demand for changing the current commission structure, but it’s unlikely that we will see anything close to the outcome in Sitzer or billion-dollar awards to be paid by the defendants. 

One thing to keep an eye out for is whether one or more provincial governments decide to take action on this issue and change the way they regulate real estate commissions.