How do Commissions Work
A few key points
- Payable on the property's purchase price based on the agreed-upon rate in clause 7.1 of your seller brokerage agreement.
- Payable at the time of closing from the proceeds of the sale, and typically paid directly to the brokerage (s) from the seller’s lawyer. Any deposits held by the listing brokerage are deducted from the total payable.
- HST is appliable on real estate commissions.
- Commissions can be a flat fee, fee for service, percentage of the sale price, or a combination.
- Commissions are always negotiable.
- If another brokerage sells your property, the commission payable is split as per clause 7.2 in your seller brokerage agreement.
- Holdover Clause - Please ensure you review Clause 7.4 with your REALTOR® to understand the implications of the holdover clause.
Purchase price from your agreement of purchase and sale: ______________________
Remuneration amount from clause 7.1 of your seller brokerage agreement: _____________
HST (15%) of the above:_______________