Do Buyers Pay Commission?

There is no short answer to this anymore. There are some situations where your REALTOR® will need to negotiate their commission with you. Please refer to the RECO Information Guide  to read all the different ways you may be represented, and decide which is best for you.

The commission paid to your  Brokerage/ REALTOR® is most often paid by the Seller whose home you are buying, but this is not always the case. Read the guide below and understand the differences.

Although it is Very Common for a Seller to pay the commission to both the Listing Brokerage and the Co-operating Brokerage (Buyer's agent), there are some situations where the Buyer may be responsible for part of or all commission to Co-operating Brokerage. The monetary obligation of the Buyer is outlined and agreed in a Representation or Service Agreement prior to seeing homes. In Ontario, as part of TRESA (Trust in Real Estate Services Act), a Buyer must enter into a contract with a Brokerage at the earliest opportunity when transacting* in real estate, in order to avoid misrepresentation. There are only two options in Ontario as of January 1, 2024, REPRESENTED OR SELF REPRESENTED. Determining what role you want the REALTOR® to play is usually established on a discovery call, first meeting such as an Open House or other face to face meeting, and always prior to seeing homes for sale or receiving any kind of advice or opinion from the REALTOR®. It is on these representation contracts that the total commission your Brokerage is to be paid will be outlined. 

There are two contracts a Buyer can choose, the first being a Buyer Representation Agreement. This contract establishes a "Client" relationship between the Buyer and the Brokerage. This means that all information, motivation, financial knowledge, etc. is kept confidential and the Brokerage/ REALTOR® will be representing the Buyer's best interests. Under this type of contract, your agent can share opinion, advise and expertise with you, to assist your decision of purchasing a home/ property.
The second contract type in Ontario, is a Buyer Self-Represented Party Acknowledgement and Consent form. Under this type of contract, a REALTOR® is not permitted to share advice, opinion or expertise. The registered salesperson can only share general information that you would be able to find yourself ie. number of bedrooms, local school catchment, price of a listed property, etc. They are not permitted to share estimated values, neighbourhood opinion, investment strategy... and so much more. This contract is for those parties who do not want the advice or guidance of a REALTOR®. Read the guide below to learn more.

*Transacting" is deemed any part of the process, including giving advice or information, showing, drafting offers or any other part of the buying or selling process.

Get In Touch

Laura McBride

Mobile: (416) 579-0931

Phone: (905) 619-9500


Office Info

Sutton Group-Heritage Realty Inc.

300 Clements Rd. W  Ajax,  ON  L1S 3C6  

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