Real Estate Commission
The negotiable fee a brokerage earns for helping you buy or sell, with the amount and who pays it set out in your written agreement.
Real estate commission is the fee a brokerage earns for representing you in a purchase or sale. In Ontario, RECO says the amount is not fixed or approved by RECO, any government, or any real estate association or board. You and the brokerage negotiate it. It can be a flat fee, a percentage of the price, or both.
Your representation agreement must spell out what you pay or how it is calculated. It must also say when that amount could change. A fee cannot be based on the gap between the listing price and the sale price. Watch the holdover clause, which can make you owe fees after the agreement ends. There is no minimum or set length for a holdover period.
A seller's listing agreement must state what the seller pays their own brokerage. It must also state the amount, if any, the seller will pay to compensate the buyer for their brokerage fees. That payment can be written into a remuneration clause in the agreement of purchase and sale. RECO notes this clause is not a cash-back clause.
A buyer's agreement must say what the buyer owes and how that changes if the seller covers some or all of it. A seller may offer nothing toward the buyer's fees, which can limit what a buyer can afford to offer. The buyer's agreement should say what happens if the seller pays more or less than the fee. That includes whether the buyer pays any shortfall.
Totals vary by brokerage and by the services included, so compare written proposals rather than relying on a rule of thumb. Rules outside Ontario differ by province.
Sources
- RECO: Signing a contract with a real estate brokerage
- RECO Bulletin 6.2: Remuneration clause in an agreement of purchase and sale
- RECO Information Guide (PDF)
Last reviewed October 16, 2026.
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General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.