Key Takeaways
- Commission rates in Ontario are not fixed by law or by any board — they are negotiable between the seller and the listing brokerage.
- The total commission is typically split between the listing brokerage and the buyer's brokerage.
- TRESA requires clear written disclosure of how much the buyer's agent will be paid, including from the seller side.
- Some brokerages offer flat-fee or tiered commission models instead of a straight percentage.
There is no 'standard' commission rate
It's a common misconception that Ontario has a fixed or industry-standard commission percentage. In reality, commission is a matter of private negotiation between a seller and their brokerage, written into the listing agreement. Historical market norms exist, but no rate is mandated by RECO, TRESA, or any real estate board.
How the split typically works
In a typical resale transaction, the total commission negotiated by the seller is divided between the listing brokerage (representing the seller) and the co-operating brokerage (representing the buyer), as set out in the listing agreement and disclosed to the buyer in the offer of co-operation.
- The seller negotiates and pays the total commission through the listing agreement.
- The listing brokerage offers a portion of that commission to any co-operating buyer brokerage.
- Buyers should still confirm exactly how their own agent is compensated in their buyer representation agreement.
What TRESA requires to be disclosed
TRESA strengthened disclosure obligations — brokerages must clearly explain, in writing, how much a buyer's agent stands to earn, including any commission offered by the seller's side, so buyers aren't left guessing whether their agent's advice could be influenced by pay.