What is a toronto real estate agent’s commission rate?

One of the first questions potential clients ask is, “How much commission do you charge to sell a property?” There isn’t a one-size-fits-all answer when it comes to real estate commissions.

In Toronto, it is common practice for sellers to pay a 5% commission on the property’s final sale price. This commission is typically split evenly between the listing agent and the buyer’s agent, each receiving 2.5%. Additionally, applicable taxes (HST) are payable on these commissions when the transaction closes. Real estate commissions are deducted from the proceeds of the property sale and are usually disbursed by the seller’s lawyer to the listing brokerage, which then reimburses the buyer’s agent their share.

It’s important to note that real estate commissions and associated fees can vary depending on the brokerage and service level. Commission rates are negotiable, and there is no standard or fixed fee. Those providing the services determine the rates or fees charged by brokerages. Commissions are detailed in the listing agreement, the contract between the seller and the listing brokerage. The seller must agree to the commission before signing the listing agreement.

Here is a helpful article on the topic if you want to learn more about commissions.