Kawartha Lakes Real Estate Library

Buyer & Seller Information

Kawartha Lakes Real Estate: Commissions and fees

Kawartha Lakes Real Estate: Commissions and fees

 Arrangements can vary Commission and fee arrangements come in three forms:

  •  A fixed amount
  •  A percentage of the sale price
  •  A blend of a fixed amount plus a percentage of the sale price

The most common arrangement is a percentage of the sale price.

Arrangements where the percentage rate decreases as the sale price increases are permitted. For example, a brokerage could set a commission rate of 3% for a sale price up to $250,000 and 2.5% for a sale price over $250,000. However, the percentage rate cannot increase as the price increases – it can only remain fixed or decrease.

In addition, commission rates cannot be based on the difference between the listing price and sale price. For example, the commission arrangement cannot specify a different rate if the property sells for at least 10% over its listing price.

Fees and commissions are negotiable

Fees and commission rates are not fixed or approved by the Real Estate Council of Ontario, government authorities, real estate associations or real estate boards. It is the brokerage that determines the fee structure and rate.

Kawartha Lakes Real Estate

While you may be working directly with a broker or salesperson, commissions are payable to the brokerage. If you are asked by an individual to make a direct payment to someone other than the brokerage, contact the brokerage immediately.

Home buyers and sellers have a broad range of choices when they look for a real estate professional. Consider your options and ensure the person you choose will provide the services you need at a fair price. Keep in mind that, as with most things, the cheapest deal is not necessarily the best deal.

Prices and service levels vary, and communicating clearly ahead of time and getting everything in writing can help avoid problems later on. Always read what you are signing and consider seeking legal advice if you do not understand.

*For the purpose of this document, a salesperson refers to both registered salespersons and registered brokers.

This publication contains general information only, produced by the Real Estate Council of Ontario (RECO)(RECO.CA) and should not be construed as legal or professional advice. For legal or professional advice specific to your real estate transaction or situation, you should seek the services of a professional.

Coldwell Banker R.M.R. Real Estate Brokerage Each Firm independently owned and operated.

Not Intended to Solicit Buyers or Sellers Currently Under Contract.

 

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