Here is everything you need to know about commissions to properly plan your budget.
How is a broker’s commission determined?
In Quebec, there is no fixed rate or uniform percentage imposed by the OACIQ. Real estate brokers are free to determine their remuneration based on the services provided and local market realities.
Remuneration can take different forms:
- A percentage of the sale price
- A flat fee or fixed price
- An hourly rate
- A combination of these options
Important: GST and QST are added to the commission amount and must be included in the total cost of the transaction.
When does the real estate broker get paid?
The commission is officially settled when the deed of sale is signed at the notary’s office. The commission is officially settled when the deed of sale is signed at the notary’s office.
Who is responsible for paying the real estate broker?
Both the seller AND the buyer are responsible for their respective broker’s fees.
Does the buyer have to pay their real estate broker?
A buyer who signs an Exclusive Brokerage Contract — Purchase is responsible for paying their real estate broker’s commission. However, depending on the situation, you may not have to pay anything out of pocket:
If the seller is represented by a broker
When the seller is represented by a broker, provisions for sharing the remuneration are set out in their contract. In other words, the commission is split between the two professionals.
- If the amount offered matches what is stated in the purchase contract, no additional amount needs to be paid.
- If it is lower, the difference must be covered by the buyer.
Therefore, there is a very good chance that the buyer won’t have to pay anything.
If the seller sells their property themselves
If purchasing a property sold directly by an owner (unrepresented by a broker), the buyer is required to pay their own broker the commission agreed upon in the contract.
What services are included for the buyer?
- Searching for properties based on your needs and budget.
- One-on-one support during showings.
- Accurate insights on the real estate market conditions in your area.
- Reviewing required documentation (Declarations by the Seller, certificate of location, etc.).
- Managing negotiations and preparing the promise to purchase.
- Helping you secure a mortgage and tracking all conditions up to the closing with the notary.
The seller pays their broker’s commission
When the seller retains the services of a broker, they are the one who pays the broker’s commission. Under your Exclusive Brokerage Contract — Sale, you will be negotiating:
- The amount or percentage of the remuneration
- The terms of payment
- The conditions
To learn more about the different brokerage contracts, read our article Everything you need to know about Exclusive brokerage contract – Sale.
While it is possible to negotiate this percentage, a lower commission may prompt some professionals to adjust their service offering or advertising strategy. While it is possible to negotiate this percentage, a lower commission may prompt some professionals to adjust their service offering or advertising strategy.
Important: The commission is payable only if the property is sold.
Commission starting at 2%
Proprio Direct was the first real estate agency in Quebec to offer sellers the opportunity to find their own buyer while benefiting from a broker’s expertise from the beginning to the end of the transaction. If this is the case, they benefit from a 2%* commission rate. Our Complici-T program is a simple and modern formula that offers you the best of both worlds to sell your property under the best possible conditions!
Services included in Proprio Direct’s offering:
- Evaluation of your property’s market value.
- Professional photography and exclusive marketing strategy.
- Digital performance report accessible in just one click.
- Maximum exposure on Centris, Realtor (MLS), and more than 100 leading real estate sites.
- Call management, showing coordination, and verification of legal documents.
- Management of negotiations and preparation of contract documentation.
- Exclusive insurance to secure the transaction (participating Proprio Direct brokers only).
- Rigorous file follow-up with all parties involved.
* When the buyer chooses to purchase directly without the intermediary of another broker. Minimum commission of $3,000, plus taxes.
Questions about your broker’s commission? Every transaction is unique. Our Proprio Direct brokers are available to explain exactly what you will have to pay.