Real estate commission in Ontario is negotiable. The signed brokerage and purchase agreements explain the amount, how it is calculated and who pays it.

Information checked November 11, 2026.

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Ask for the complete amount in writing

A listing agreement may set a percentage, a fixed fee or another method. Ask what services it covers, what the brokerage proposes to offer a cooperating brokerage and whether the quoted amount includes HST. RECO does not set an industry rate.

If the written fee is $20,000 plus 13% HST, the total for that example is $22,600. A written quote makes it easier to compare services and the seller’s expected net proceeds.

Buyers should read their own agreement too

A buyer representation agreement can set how the buyer’s brokerage is paid. Any payment coming from the seller or seller’s brokerage can affect what the buyer still owes under the contract. Ask your agent to show what happens if that payment is lower than the amount in your agreement.

Review the length of the agreement, any holdover clause, what happens if you find a property yourself and which services are included. Ask the brokerage to explain unfamiliar language before you sign.

Compare proposals on the same assumptions

Ask for the same sale price and service scope in each proposal. Put the total fee including tax next to photography, preparation, offer handling and closing support. Then compare the estimated proceeds you would actually receive.

Compare real estate compensation with the services you receive

Suppose a seller is choosing between two Ontario brokerage proposals for the same home. One lists marketing, photography and negotiation as part of the agreement. The other lists some services separately and handles cancellation differently. Neither can be compared fairly from one advertised rate. Ask both brokerages to use the same hypothetical sale price, identify the services and terms, show HST where applicable and estimate the amount that would be deducted at closing.

On the buying side, review the representation agreement before looking at how any remuneration might be paid in a specific deal. If an offer or another brokerage payment covers part of it, ask whether the buyer would owe a shortfall and how it would be shown. Agree on a written amount or formula that can be calculated at the prices you are considering. Brokerage fees are negotiable and the particular agreement controls.

What to check before deciding

Identify the parties and the payment agreement

A representation agreement explains who is representing you and what remuneration you may owe. A purchase agreement and other written instructions can also matter. Make the assumption explicit in your notes. Ask for the clauses that establish who pays each amount and what would happen if any other payment were lower than expected.

A verbal statement that someone else pays everything may not match the written agreement or a particular property’s terms. Compare the result against the amount or risk you can actually carry. Ask for a worked example at your target price and keep it with the signed agreement. Review the buyer representation agreement guide.

Match the quote to the scope of service

A listing fee can include different services, from preparing the home and organizing photography to reviewing offers and handling conditions. Ask what happens after the listing goes live. Compare specific deliverables, who will do them, and whether staging, a floor plan, special marketing or a rush request is charged separately.

A low headline rate can be a reasonable fit for a narrower service, but it may leave the client responsible for organizing or paying for more work. Put comparable services side by side and ask for the quote’s validity dates and any additional charges in writing.

Calculate a net number rather than a rate alone

A percentage, a fixed fee and a blended structure can produce different net proceeds at different prices. Calculate all of them with the same assumptions. Test this part of the plan under less favourable conditions. Include applicable HST, separately charged preparation, legal fees and known mortgage charges. Label amounts that are estimates and those already committed.

A change in sale price can change how the fee applies and how much remains available for the next purchase. Costs already paid may also be unrecoverable. Choose a response you can carry out before you reach the deadline. Use a low, middle and high scenario with the seller net-proceeds guide. Ask your lawyer about the final closing statement.

Read cancellation and holdover terms carefully

The term and scope can affect your choices if a listing is withdrawn, the search changes or a property is purchased after the agreement ends. Ask how to end the agreement, what fees may remain and which prior introductions could be relevant under any holdover wording.

Switching brokerage without reviewing an existing commitment can create unexpected disputes over services or compensation. Get any change in writing. If an obligation is unclear, ask for an example or review it with your lawyer before taking on a second commitment.

Ask for the terms that apply to your offer

For a buyer, confirm how remuneration will be dealt with before the offer is signed. The answer may differ from one property or transaction to another. Get a comparable figure or document before changing the plan. Ask your representative to identify any amount due from you, the timing, and how that fits the cash you need for the deposit and closing.

An estimate that omits a possible shortfall can leave a buyer with less cash at closing than planned. Avoid assuming that an informal discussion changes written terms. Use the result to decide where you need more time. Document the understanding for the actual property and review the statement with the lawyer before waiving any relevant condition.

Follow-up questions

Is there a standard commission in Ontario?

Brokerage remuneration is negotiable. Ask for the amount or formula, what is covered, applicable tax and what you owe if another payment is different. Compare written proposals at the same sale price and read the terms about ending the agreement before signing.

What is one useful question to ask a brokerage?

Ask: ‘If this transaction closes at my target price, what will I pay, what is included, and what would make that number change?’ Follow up by asking for the agreement clause and an itemized example. That answer is useful for both budgeting and comparing service.

The goal is to know what you will pay under the written terms and what help you will receive. Ask for an explanation early enough to compare offers or brokerage proposals on their actual merits.

How much is real estate commission in Ontario, and who pays it?