Who Pays Realtor Fees, Buyer or Seller in Canada?

When you’re buying or selling a home in Canada, one of the biggest questions that comes up is: who actually pays the real estate agent’s commission? The short answer is usually the seller, but like most things in real estate, the full story is a bit more complicated. Commission rates, who pays them, and how they’re structured can vary depending on where you live, who you hire, and what kind of deal you make. This is why many buyers and sellers ask, who pays realtor fees, buyer or seller in Canada, or search for specifics like who pays realtor fees in Ontario or who pays realtor fees in BC.

In Most Cases, the Seller Pays

It’s standard for the seller to pay the full real estate commission. This happens when the seller signs a listing agreement with their agent. That contract sets the commission rate and also explains how it will be split between the seller’s agent (the listing agent) and the buyer’s agent. This common practice answers the question many ask: realtor fees—who pays?

The buyer doesn’t see this fee directly. It’s not listed in their closing documents, and they don’t write a cheque for it. But that doesn’t mean it’s invisible. The commission is usually built into the sale price of the home, which means the buyer is still indirectly covering it when they agree to pay the seller’s asking price. This built-in structure is consistent across provinces and helps clarify confusion around who pays realtor fees, buyer or seller in Canada.

What’s a Typical Commission Rate?

Commission rates in Canada aren’t fixed by law. They’re set by the agent or brokerage and agreed upon by the client. Most agents charge a percentage of the sale price, and the most common total commission falls between 3.5% and 5%.

In Ontario, a typical arrangement is 5% total, 2.5% to each agent. In Alberta, it’s common to see a tiered commission structure, like 7% on the first $100,000 and 3% on the rest. In BC, especially in places like Vancouver, where prices are higher, agents often adjust their rates to stay competitive. These examples reflect regional practices and help answer common questions like who pays realtor fees in Ontario.

No matter where you are, these fees are usually split between both agents, and HST or GST applies depending on your province.

Can You Negotiate the Commission?

Yes, absolutely. Commission is negotiable, and sellers often do try to bring the rate down. Some listing agents offer discounted rates—say 1% for their side—while still offering the full 2.5% to the buyer’s agent. That brings the total to 3.5%, which can save a seller thousands.

In Toronto and Vancouver, where the market is highly competitive, agents are more likely to offer lower commission rates or extras like staging and photography at no added cost. In smaller markets like Halifax or Saskatoon, agents may be less flexible, but it’s still worth asking.

For buyers, commission isn’t usually a negotiation point because they’re not the ones paying it. However, some agents do offer cashback rebates after closing. That means you could get back part of the commission your agent earns, depending on the home’s price. Still, many first-time buyers want to be sure they understand who pays realtor fees in any deal they’re part of.

What’s a Buyer Representation Agreement?

If you’re working with a real estate agent as a buyer, you’ll probably sign a Buyer Representation Agreement (BRA). This agreement lays out how your agent will be paid. Most of the time, the commission comes from the seller. But the BRA might say you’re responsible for paying your agent if the seller doesn’t offer enough or anything at all.

This can happen with private sales or FSBO (For Sale by Owner) listings. It’s rare, but if you’re buying in areas like rural Quebec or parts of the Maritimes, where private sales are more common, it’s something to keep in mind. A good agent will explain this upfront, so there’s no confusion about who pays realtor fees, the buyer or seller in Canada.

What Happens When One Agent Represents Both Sides?

Sometimes, the same agent represents both the buyer and the seller. This is called a “double-ended” deal, and it means that one person earns the full commission. This setup is allowed in most provinces, including Ontario and Alberta, but it’s banned or restricted in places like BC because of the obvious conflict of interest.

If your agent is double-ending a deal, they’re required to get consent from both parties and be clear about what that means. Keep in mind: one agent can’t fully represent both your interests and the other side’s. It’s a trade-off that requires careful thought about realtor fees—who pays them—and how representation is structured.

Do Buyers Ever Pay Their Agent?

Most of the time, no. But if the seller doesn’t offer any commission, and you’ve signed a BRA that says your agent gets paid regardless, then yes, you might have to pay out of pocket. This is rare, but possible in private sales or when buying off-market properties.

You should always talk this through with your agent and read your agreement carefully. If you’re not comfortable with the terms, ask for a change before you sign. This will help avoid confusion later around who pays realtor fees in more complex or unconventional transactions.

Flat Fees, Discount Brokerages, and What You Get

Some agents offer flat-fee services instead of commission. This is more common in big cities where competition is fierce and online brokerages are gaining traction. A flat fee can seem like a great deal, but it usually comes with fewer services, like limited marketing, no staging help, and no negotiation support.

If you’re experienced and want to manage most of the process yourself, this can work. But most sellers benefit from a full-service agent, especially when pricing, negotiation, and visibility make or break the deal. In either case, understanding who pays realtor fees under each model is key to comparing your options properly.

Buying Pre-Construction? Here’s How Commission Works

When you buy a pre-construction home, the builder usually pays the commission, usually around 3% to 4%. In markets like the GTA and Metro Vancouver, builders pay this to attract agents and drive sales. Some agents who focus on pre-construction properties offer cashback incentives out of their commission. This can help buyers cover closing costs or upgrades. Ask your agent if this is an option for you before you sign anything. It’s another way buyers can benefit from knowing who pays realtor fees, buyer or seller in Canada.

Do You Pay Tax on Real Estate Commission?

Yes, the seller pays HST or GST on top of the commission, depending on the province. In Ontario, that’s 13% HST. In BC and Alberta, it’s 5% GST. This tax is added to the total commission and paid at closing.

Buyers don’t normally pay tax on commission unless they’re paying their agent directly, which, again, is rare. Still, buyers wondering who pays realtor fees in BC or who pays realtor fees in Alberta should understand how taxes factor into those payments.

In Canada, it’s almost always the seller who pays the real estate commission. But that doesn’t mean buyers and sellers should ignore how it works. Commission can be negotiated, cashback incentives exist, and different markets have different norms.

If you’re selling, it’s worth comparing agents not just on their rate, but on what they bring to the table—marketing, staging, negotiation, and local knowledge. If you’re buying, ask your agent how they’re paid, whether rebates are available, and what’s in your Buyer Representation Agreement.

Not sure who pays realtor fees in Alberta, Ontario, BC, or other major areas? A REMAX agent breaks it down clearly and fights to structure a deal that benefits you. Get straight answers, sharp strategy, and results. Reach out today.