The U.S. land deal could affect the housing market in Canada.

The National Association of Realtors of British Columbia has agreed to change broker commission rules and pay $418 million dollars as part of the settlement.

More than one million U.S. Realtors have agreed to pay more than $400 million in compensation to licensees who believe the group misrepresented the value of real estate. The National Association of Realtors (NAR), denying any adverse effects of the case, also agreed to eliminate the standard commission of six percent of the sales price and to eliminate other commission rules.

A historic agreement in the U.S. comes at the same time as a proposed national class action lawsuit is making its way through the Canadian courts, and the lawyer representing the group says the value of Canadian homes will drop if it wins. A real estate professor at the University of British Columbia says it will make the buying and selling process cheaper.

The National Association of Realtors (NAR) in the United States has for decades required brokers listing homes for sale to offer a commission to the buyer's agent - usually about six percent of the sale price, split between the seller's and buyer's brokers. The lawsuit alleged that homeowners were forced to enter into commission-sharing agreements in order to market their homes on various advertising platforms and not miss out on potential buyers. As part of the agreement, NAR agreed to abandon the practice and prohibit the inclusion of agent commissions in listing ads.

The trial also takes place in Canada, where the commission structure varies from province to province across the country, but typically realtors and their brokers charge a commission calculated as a percentage of the home's value divided between the seller's and buyer's agents. In B.C., the commission is seven percent on the first $100,000 and three percent on the balance of the transaction, realtors say.

The Canadian National Association of Realtors (CREA) is a defendant in a proposed class action lawsuit filed in federal court in January of this year alleging a "conspiracy, agreement or arrangement" among brokers resulting in an unlawful increase in the cost of residential real estate commissions.

The official accusations are not confirmed in court. CREA says it denies the allegations and will continue to defend its interests. It also notes that it is "closely monitoring" the settlement agreement in the US. Attorney Myers hopes developments in the U.S. will strengthen the Canadian case. "The consequence of our lawsuit will be more money in the pockets of home sellers and lower residential real estate values across the country," he says.