General information only: rules, fees, tax treatment, and processes can change. Confirm current requirements with the applicable regulator or a qualified legal, tax, financial, immigration, or compliance adviser.
Key Takeaways
- Remuneration is a matter of the written agreement and transaction facts, not a universal Ontario rate.
- Ask whether the amount is a percentage, fixed amount, or another formula, and whether tax is included.
- The agreement should explain any payment offered by another brokerage and what you owe if that payment is absent.
- Compare the services and obligations alongside the amount; do not rely on an informal quote.
Treat commission as a contract term
Ask who pays, how the amount is calculated, what services are included and what happens if the transaction does not close. Do not rely on a quoted market norm.
This article is general information, not legal, tax, financial, immigration, or compliance advice. Confirm current requirements with the relevant official authority and qualified advisers.
The short answer: read the remuneration clause
Ontario commission is not one government-set percentage. The brokerage and client agree on remuneration in writing, including the services covered and how payment is calculated. On the buyer side, a seller or seller's brokerage may offer a contribution, but the agreement should explain what happens if the contribution differs from or does not cover the agreed amount.
Questions to ask before signing
Ask for the amount or formula, when it becomes payable, whether HST is included, what services are included, and whether there are holdover or early-ending provisions. Ask how a private sale, another brokerage, or a changed representation arrangement affects the contract.
- Is the amount a percentage, fixed sum, or tiered formula?
- Does the figure include HST or other charges?
- What outside remuneration may be received and how is it credited?
- What is the agreement's term and ending process?
A fair comparison looks beyond the number
Two agreements with different amounts may include different services, scope, or risk. Compare the actual deliverables and obligations, and get legal or tax advice for your circumstances. Current forms and rules should be checked with the brokerage and RECO.