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Toronto Real Estate Board Successful in Denying Access to MLS Website
The Toronto Real Estate Board (TREB) recently won a decision in the Ontario Superior Court of Justice permitting TREB to deny Realtysellers (Ontario) Limited access to TREB’s Multiple Listing Service (MLS) website, at least for the time being. Realtysellers and BNV Real Estate Inc. (a Bell Canada affiliate), as part of a joint venture, operated the Real Estate Plus website, which allowed members of the public to obtain information about properties on the MLS system.
TREB claimed that operation of the Real Estate Plus website violated various provisions of the Authorized User Agreement (AUA) and MLS Rules, to which Realtysellers, as a member of TREB, had agreed to be bound. Among other things, the AUA and MLS Rules prohibit: (i) the circulation or copying of the MLS database to anyone except other authorized users or persons desiring to buy/sell property (i.e. arguably not to BNV Real Estate); (ii) the use, copying, reproducing or exploiting of the MLS database for the creation, maintenance or marketing of a database that is competitive with the MLS database; and (iii) members other than the listing brokerage from advertising an MLS listing or using the listing brokerage’s photographs, virtual tours and other marketing material without the consent of the listing brokerage. As a result, TREB exercised its right under the MLS Policies to terminate or suspend a member’s username and password code in the event of any unauthorized or improper use of the MLS system.
The court ruled that the interlocutory injunction previously granted to Realtysellers (the effect of which was to restore Realtyseller’s access to the MLS system) should not be continued. The court accepted that if Realtyseller’s was allowed to run the Real Estate Plus website, other TREB members may no longer post their listings on the MLS system and may withdraw their membership, which loss of business would result in irreparable harm to TREB. The court also determined that the balance of convenience weighed in favour of TREB.
The question of whether TREB properly denied Realtysellers access to the MLS system is scheduled to proceed to trial.
For a copy of the decision, visit:
Realtysellers (Ontario) Limited) v. Toronto Real Estate Board