In the previous post, we talked about Real Estate Commission in a simple way. Generally speaking, Commercial and Residential Real Estate is our job. Also, we made a team of experienced agents in both categories to provide the best services to our clients. We would like to answer some questions related to the commission in this post. Question & Answer Commission:
Q.Who do I pay commission to?
In Ontario, real estate commissions are paid directly to the real estate brokerage that listed a home for sale (the ‘listing brokerage’) – not the individual agent you are working with. A REALTOR should never ask you to pay them directly. In most cases, the seller’s real estate lawyer subtracts the amount of commission owed from the money received from the Buyer on closing and pays the listing brokerage directly. Once received, the brokerage pays the listing agent and the buyer’s agent.
Q: What is the standard commission in Toronto?
There is no standard real estate commission. There are many real estate commission models in Ontario, each with its own benefits and drawbacks. Commissions vary depending on the services and inclusions offered by the agent or team.
Q: Is real estate commission negotiable?
Individual agents and their brokerages set their own commission so it is often negotiable. Some agents offer different commission packages, with various levels of inclusions and services, and may reward a client with lower commission options for repeat clients or multiple transactions.
Question & Answer Commission, please reply!
BABAK MEHRABI, Real Estate Salesperson