Is Realtor Cashback Legal in Canada?
The short answer is yes, real estate commission rebates are 100% legal in Ontario, BC, and Alberta, provided they are structured and disclosed correctly to all participating parties, including lenders.
Province-by-Province Regulations:
- Ontario (RECO & TRESA): Commission sharing with unregistered buyers is prohibited, but brokerages can legally rebate commission directly to their client (the buyer) as a cash incentive, documented in the BRA or transaction paperwork.
- British Columbia (BCFSA): Commission rebates are fully legal. Brokerages must disclose the cashback payment on the standard disclosure forms before writing the offer.
- Alberta (RECA): Rebates are legal. Disclosing the rebate on the closing settlement statement is required to ensure complete lender transparency and compliance.
Our reverse marketplace Hausee Select connects you with top-tier, compliant Canadian brokerages who put their rebate terms in writing upfront.