Is Real Estate Commission Negotiable in Canada?
Many Canadians are unaware of the inner mechanics of real estate commissions. In a typical purchase, commissions are negotiable, and buyers have a legal right to seek rebates from their cooperating agent.
How Commission Splits Work:
- Total Commission: The seller typically agrees to a total commission of 4% to 5% of the purchase price.
- The Co-op Split: This commission is split, with approximately 2% to 2.5% designated for the buyer's cooperating brokerage.
- Buyer Commission Rebates: Since the buyer brokerage receives this allocation upon a successful close, they can legally rebate a portion of it (e.g. 50%) back to the buyer to help offset high land transfer taxes and legal fees.
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