Real Estate Commission and Realtor Fees in Ontario

In Ontario, realtor fees are usually paid by the seller, on closing, out of the sale proceeds. That payment usually covers both sides of the sale: the listing brokerage’s commission and the commission for the co-operating brokerage, which is the brokerage working with the buyer. The listing brokerage receives the commission and pays the co-operating brokerage its share.

If you are buying, check your own agreement. A buyer who signed a buyer representation agreement promising their brokerage more than the seller’s co-op offer can owe the difference under that agreement.

The seller’s listing agreement sets the commission, including the part offered to the co-operating (buyer’s) brokerage. On closing, the listing brokerage receives the commission out of the sale proceeds and pays the co-operating brokerage its share. Commission in Ontario is paid to the brokerage, not straight to the agent, so each brokerage then pays its own agent.

Both parts are negotiable, like the rest of the commission. When you talk to a brokerage, ask for the two numbers separately: what the listing brokerage charges for its own work, and what is being offered to the buyer’s brokerage.

Yes. Real estate commission in Ontario is negotiable, and it is not set by law, by RECO or by any real estate board. The amount is whatever the seller and the listing brokerage agree to and write into the listing agreement. Commission can be a percentage of the sale price or a flat fee.

Because no law or board sets the number, the rate that counts is the one written into your listing agreement. Get it in writing, with HST shown, before you sign. If you are weighing a flat fee against a percentage, our guide to flat-fee MLS listings in Ontario explains how a flat-fee listing works.

Yes. 13% HST is charged on real estate commission in Ontario. It applies to the listing brokerage’s commission and to the commission for the co-operating brokerage, and it is added on top of the agreed commission. When you compare quotes, ask for each figure with HST included so you can see the full amount.

Our real estate commission calculator shows HST as its own line for any sale price, so the totals you see include the tax.

Real estate commission in Ontario is usually paid on closing, out of the sale proceeds. If the buyer’s deposit is held in trust by the listing brokerage, the deposit is commonly applied toward the commission on closing. The listing brokerage then pays the co-operating brokerage its share, and each brokerage pays its own agent.

Some listing agreements also include an upfront fee, due before the home sells. Read yours so you know what is owed and when.

If a home doesn’t sell in Ontario, what the seller owes depends on the listing agreement. Commission is usually paid on closing, out of the sale proceeds. But a listing agreement can include upfront fees, cancellation fees and a holdover period. With a holdover period, a buyer introduced during the listing who buys within that period after the listing ends can still trigger commission. Read the whole listing agreement before signing.

At Parker Coulter Realty there are no upfront fees and no cancellation fees.

Parker Coulter Realty charges a 1% listing commission, plus HST, on homes across Barrie, Simcoe County, cottage country and the GTA. There are no upfront fees and no cancellation fees, and we only get paid when you get paid. The co-operating commission offered to the buyer’s brokerage is separate and is the seller’s choice. The 1% includes photography, drone, staging assistance, a 3D tour, floor plans and 24/7 support from start to close.

Here is the math on a $750,000 sale, the calculator’s starting price: 1% is $7,500, and 13% HST on that is $975, so the listing commission comes to $8,475 with HST. Whatever you choose to offer the buyer’s brokerage is separate and on top of that, with HST on it too.

Parker Coulter Realty is the original 1% listing brokerage, and we have been listing homes this way for about a decade. For how our 1% and the co-operating commission fit together, see our page for sellers looking for a low commission realtor in Ontario.