Overview: Real Estate Agents
Real estate agents in Canada are licensed province by province. RECO covers Ontario, BCFSA covers British Columbia and the OACIQ covers Quebec. Most work under a brokerage, and in Ontario your contract is with that brokerage, not the agent. Realtor is a separate label. It's a trademark of the Canadian Real Estate Association, and only its members may use it.
Who an agent can work for changes at the provincial border. British Columbia bans one licensee acting for both buyer and seller, except in remote places where nobody else can take a side. Quebec bans it for most home sales too. Ontario still allows it, but only with informed consent in writing from both of you. An Ontario agent also has to hand you RECO's information guide and walk you through it before any work starts.
Your listing agreement is with the brokerage, not the person who came to your kitchen. Commission is set by agreement, and so is the holdover clause. That clause keeps a fee owing if a buyer who toured the house during the listing buys it within a set time after the term ends. We'd read it twice.
Our listings show what each firm states on its own website. Pick your province, then your city, to reach brokerages that sell homes where you live.
What real estate representation costs in Canada
Compare the entire written fee agreement, including any buyer-brokerage contribution. Published lower-fee plans can help you compare options, but they do not set a standard commission.
| Service | Planning budget | What it covers |
|---|---|---|
| Published lower-fee listing plans | 1%–1.5%% of sale price under a single-percentage agreement | Full-service listing-side percentage plans, including marketing and offer support; buyer-brokerage compensation is separate.the agreed final sale price This is the listing side only. A minimum fee can apply; other service plans and tiered commissions may cost more.What this estimate coversIncludes in this budget: Only the listing and representation services written into the agreement Budget separately or confirm: Any separately agreed buyer-brokerage contribution; Sales tax, legal closing costs and separately billed marketing |
| Seller-managed listing package | C$500–C$1,500per agreed listing package | Limited-service listing package; the seller retains much of the viewing and negotiation work.Limited service: confirm the listing term, renewal fees and which viewing/negotiation work you do. Any buyer-brokerage contribution is separate.What this estimate coversIncludes in this budget: The agreed listing period and package setup Budget separately or confirm: Full-service representation unless explicitly purchased; Buyer-brokerage contributions, legal fees and tax |
| Buyer representation | Scope-based quoteagreed representation fee formula | Show the negotiated fee and any confirmed seller contribution separately.legal and inspection fees; unconfirmed seller contributions The signed representation agreement controls the fee. Ask how any seller contribution is credited and what you owe if it does not cover the agreed amount.What this estimate coversIncludes in this budget: Agreed buyer representation Budget separately or confirm: Legal and inspection fees; Unconfirmed seller contributions |
| Separately billed marketing | Scope-based quoteper agreed package | Only services excluded from the chosen representation package.unlisted services Photography, staging, advertising and cancellation charges may be included or billed separately. Ask for the itemized package and payment triggers. Add this only when it is needed and is not already included in the agreed package.What this estimate coversIncludes in this budget: Specified photography, staging or promotion Budget separately or confirm: Unlisted services |
Turn the written percentages into a total
Assumptions:
- Illustrative sale price: C$750,000
- Illustrative signed agreement: 1% listing fee plus a separately agreed 2.5% buyer-brokerage contribution
- These selected rates are an example, not a required or recommended commission
C$750,000 × 1% = C$7,500. C$750,000 × 2.5% = C$18,750. Together: C$26,250.
Illustrative brokerage fees: C$26,250, plus applicable tax and any agreed extras. Replace both percentages with the terms in your own agreement.
Not included:
- Legal work, mortgage discharge charges and moving
- Separately contracted staging or marketing
What changes the price
- Percentage, fixed amount or combined formula and the precise services
- Amount, if any, directed towards buyer-brokerage fees
- Payment triggers, cancellation terms and continuing obligations
Ask before accepting a quote
- What services and marketing costs are included, and which are charged separately?
- What could I owe if the other party does not cover my brokerage fee?
- When can a fee be owed after cancellation or expiry of the agreement?
A low listing percentage is not the entire sale cost
- Request the listing fee, any buyer-brokerage contribution and tax as separate dollar amounts at your expected sale price
- For a tiered commission, calculate each price band separately; do not apply the first-band rate to the whole sale
Canadian context
Commission is negotiated; representation agreements and disclosure requirements must be checked for the applicable province.
Planning amounts in Canadian dollars. Published tax treatment varies; confirm applicable taxes and the final total in your written quote. Rows can be different services, alternative packages or separately priced extras. Add only work that is needed and not already included in your quote.
Frequently asked questions
Who does the agent in a sale actually represent?
Normally, only the people who signed a written agreement with the brokerage. In Ontario, a buyer or seller with no brokerage of their own is a self-represented party, and the agent can offer limited help but can't advise them or argue their side. In Quebec, a verbal brokerage contract is void, so no signed paper means no one is working for you. Ask whose side the agent is on at the first meeting.
Can a buyer back out after an accepted offer?
In British Columbia, yes, for a short window. Buyers of most homes get three business days after acceptance to cancel for any reason, and they pay the seller a small fee based on the price. Ontario gives no such pause on a resale home. The exception there is a new condo bought from the builder, which comes with a ten-day cooling-off period.
What does the listing agreement set out?
The brokerage, the term, the commission and the share offered to a buyer's brokerage, the marketing, and the holdover. That last clause is the one sellers argue about later. RECO says you're free to negotiate the holdover terms. Ask for a short one before you sign, while you still have something to trade.
Can I cancel a listing before it ends?
Only if the brokerage agrees, in most cases. RECO warns that a brokerage usually has no duty to let you go before the expiry date. Suspending and cancelling are different things. A suspended listing comes off the market, but you're still bound and can't list with anyone else. If they do cancel, get it in writing, with the buyers the holdover still covers.
Where can I look up an agent's licence and record?
Look them up on your province's public register. RECO runs one for Ontario, BCFSA for British Columbia, RECA for Alberta and the OACIQ for Quebec. Most of them also show recent discipline. Make sure the brokerage named there matches the one on your paperwork. In Ontario, every agent and brokerage has to be registered with RECO to trade at all.
Who pays a buyer's agent?
Usually the seller, through a share of the listing commission. In Quebec, the OACIQ explains that the share paid to your broker comes off what your own brokerage contract promises, so you pay nothing extra when the two amounts match. In Ontario, a buyer representation agreement sets the fee and the term. Ask what happens with a private sale, where no one offers your brokerage a share.
