How this works
Where the commission actually goes.
In Canada, real estate commissions are negotiated between the seller and the listing brokerage at the time of listing. The total commission is typically expressed as a percentage of the sale price — often split (e.g. 2.5% to listing side, 2.5% to buyer side) but this is fully negotiable.
The flow of money
- Seller pays the entire commission out of sale proceeds at closing.
- HST/GST is added on top of the commission and remitted by the brokerage.
- Listing brokerage keeps its side and pays the buyer's brokerage its agreed share through the trust account.
- Each brokerage then splits its share with the individual agent under that agent's brokerage agreement.
- Flat fees (per-deal fee, desk fee, E&O) come off the top of the agent's share.
Common split structures (Canada, 2026)
- 70 / 30 — newer agents at full-service brokerages
- 80 / 20 or 85 / 15 — experienced producers
- 95 / 5 with cap — top-producer model, often with monthly desk fee
- 100% commission — flat-fee brokerages, fee paid per transaction
// disclaimer
Real-world commission structures vary by brokerage, market, and agreement. Referral fees, mentor splits, team splits, and franchise fees can apply on top of the basics shown here. Always read your independent contractor agreement carefully — and confirm tax treatment with your accountant.