Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
In Ontario, each side owes its own brokerage under a written agreement. The seller pays the listing brokerage and usually covers some or all of the buyer’s brokerage fee, but RECO says that offer can be nothing. If the seller covers less than your buyer agreement says, you owe the difference plus 13% HST, in cash.
This guide is for anyone buying or selling a home in Ontario in 2027 who wants a straight answer on who pays the agents. You will see how each side’s fee is set, what a buyer can owe when a seller offers less, real dollar examples at Toronto prices, and how to keep the fee from surprising you at the offer table.
Who pays realtor fees in Ontario, the buyer or the seller?
Each side owes its own brokerage. The seller owes the listing brokerage under the listing agreement. The buyer owes their brokerage under a buyer representation agreement. In most resale deals the seller also agrees to put money toward the buyer’s brokerage fee, which is why many buyers never write a cheque to their agent.
That last part is a choice, not a rule. The Real Estate Council of Ontario (RECO), the regulator, says a seller’s listing agreement must state the amount, if any, the seller will pay to compensate the buyer for their brokerage fees. “If any” matters: a seller can offer the full amount, part of it, or nothing.
The money for both fees comes out of the sale, so in a practical sense the price you agree on carries it. But legally, the person who signed each agreement is the one who owes it. My earlier guide to who pays realtor fees in Ontario has the background; this post adds the 2027 numbers and the buyer’s side in more detail.
How does a buyer’s agent get paid in Ontario in 2027?
Through the agreement you sign with their brokerage. RECO says a buyer’s agreement must clearly set out:
- The amount you agree to pay your brokerage, or how it will be worked out.
- How that amount changes if the seller agrees to cover some or all of it.
- How it changes if you agree to multiple representation, where the same brokerage or agent also acts for the seller.
The agreement must be in writing, and its expiry date must appear prominently on the first page. RECO also says that if you do not want to sign an agreement, you should not expect the agent to provide services such as showing you homes.
There is no set fee for buyers either. Ontario’s Trust in Real Estate Services Act (TRESA) says a brokerage’s pay must be an agreed dollar amount, a percentage of the price, or both. It cannot be based on the gap between the list price and the sale price. Before you sign, read my guide to the buyer representation agreement, line by line.
What if the seller offers less than your agreement says?
Then you may owe your brokerage the difference. RECO warns buyers that a seller might not offer anything toward their brokerage fee, that this could affect how much they can offer, and that some buyers may not be able to afford a home when the seller pays nothing toward their agent.
Here is what that looks like at real Toronto prices. Assume, as an example only, that your agreement sets your brokerage’s fee at 2.5% of the price. The table shows what you would pay yourself, with 13% HST, depending on what the seller offers.
| What the seller offers your brokerage | $545,000 condo apartment | $1,125,748 semi-detached | $1,260,000 detached |
|---|---|---|---|
| 2.5% (covers your full fee) | $0 | $0 | $0 |
| 2% | $3,079 | $6,360 | $7,119 |
| 1% | $9,238 | $19,081 | $21,357 |
| Nothing | $15,396 | $31,802 | $35,595 |
Source: prices are City of Toronto medians for October 2026 from TRREB Market Watch; HST at 13% (CRA). The 2.5% buyer fee and the seller offers are examples, not typical or recommended amounts.
That gap is cash on top of your down payment and closing costs. On a detached house it can be more than $35,000. So the time to ask “what if the seller offers less?” is before you sign your agreement, and again before you write each offer. My list of buyer closing costs in Ontario for 2027 shows everything else you need cash for.
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Who pays HST on realtor fees in Ontario?
Whoever owes the fee pays the HST on it. The Canada Revenue Agency lists Ontario’s HST rate at 13%. A seller pays HST on their own brokerage’s fee and on whatever they agree to pay toward the buyer’s brokerage. A buyer pays HST on any part of their own brokerage’s fee that the seller does not cover.
Does the seller still pay the buyer’s agent in a slower 2027 market?
Nothing in Ontario’s rules makes a seller do it, so it comes down to each seller’s listing agreement. What has changed is the market around that decision. TRREB reported 5,603 GTA sales in October 2026, down 7.9% from a year earlier, with an average price of $1,024,108, down 2.7%. Its chief information officer said buyers have “substantial negotiating power on price”.
Homes also take longer to sell than they did two years ago. From January to October 2026, condo apartments in Mississauga averaged 42 days on market, up from 31 in the same months of 2024, and detached houses in Brampton averaged 30 days, up from 22 (TRREB MLS data via REALM, January to October 2026 vs 2024).
In my view, that makes it riskier for a seller to offer nothing to buyers’ brokerages, because it can shrink the pool of buyers who can afford to make an offer. For buyers, it means the fee is one more term you can raise when you negotiate, along with price, closing date and conditions.
Can a buyer negotiate realtor fees in Ontario?
Yes. Your own brokerage’s fee is negotiable, just like a seller’s. Things worth discussing before you sign:
- The fee itself: a flat amount, a percentage, or a mix.
- The scope. RECO says your agreement might cover a specific property, an area, or a type of property. A narrow scope protects you if you also want a different agent for, say, a cottage search.
- The term and the holdover. There is no set length for either. A holdover clause can make you owe the fee if you buy, after the agreement ends, a home you were shown during it.
- Rebates or incentives. RECO’s buyer checklist says to get the details of any rebate or incentive in writing.
- The seller’s offer. Ask your agent how much each listing offers to buyers’ brokerages before you book a showing, so you know your exposure.
What happens to the fee if one agent represents both sides?
That is called multiple representation, and it cannot happen unless every client agrees in writing. RECO says the brokerage must first give each client a written disclosure that explains how its duties will change, how the services will differ, and any change to how much each client pays. You can say no, and the brokerage can refer you to another agent or brokerage instead.
A lower fee is not a free lunch here. Under multiple representation the agent cannot advise you on price or terms. Read designated and multiple representation in Ontario before you agree to it.
Do you save the fee by buying without an agent?
Not automatically. If you are not a client of any brokerage, RECO calls you a self-represented party. The listing agent then works only for the seller, must share with the seller anything you reveal about your budget or motivation, and cannot give you advice. RECO says very few buyers make this choice, and recommends getting independent professional advice first. Whether the seller passes any saving on to you is up to the seller.
Do the same rules apply when you rent a home in Ontario?
Yes. TRESA’s fee rule covers rentals as well as sales: a brokerage’s pay must be an agreed dollar amount, a percentage of the rental price, or both. RECO’s Information Guide, which agents must give you before offering services, is written for renters as well as buyers and sellers. So whether you are leasing out a condo or looking for one, the person who signed an agreement with a brokerage is the person who owes that brokerage, unless the other side agrees in writing to cover it. Ask for the fee in dollars before you sign, and for what the agent will actually do for it, such as screening, showings and preparing the lease. If you are not sure who the agent across the table is working for, read who your real estate agent works for under TRESA.
Buyers: before you sign a buyer agreement, ask your agent to show you, in dollars, what you would owe on a typical home in your price range if a seller offers half your fee, and if a seller offers nothing. Then decide whether you are comfortable. Sellers: decide what you offer to buyers’ brokerages with your agent’s read on your local buyer pool, not by habit, and put it in writing in the listing agreement.
A buyer’s fee shortfall is easy to miss because it never shows up on the listing price. If you are stretching to the top of your mortgage approval, a seller who offers less than your agreement says could leave you short of cash on closing. Confirm what the listing offers before you write an offer, and have your lawyer check how any amount you owe will be paid.
What to do next
- Read the fee section of any buyer or listing agreement before you sign, and ask for a dollar example at your price.
- Buyers: ask what each listing offers to buyers’ brokerages before you book a showing.
- Sellers: choose what to offer the buyer’s side based on recent days on market for homes like yours.
- Get any rebate, incentive or fee change in writing.
- Have a real estate lawyer review the agreement if anything is unclear.
Need help with this? Talk to me.
I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].
Frequently asked questions
Who pays realtor fees in Ontario?
In Ontario, each side owes its own brokerage under its own written agreement. The seller pays the listing brokerage and usually agrees to put money toward the buyer’s brokerage fee, but RECO says a seller’s offer can be any amount, including nothing. If the seller covers less than the buyer’s agreement says, the buyer may owe the difference, plus 13% HST.
Does the buyer pay realtor fees in Ontario?
Sometimes. An Ontario buyer owes their brokerage the fee set in their buyer representation agreement, but in most resales the seller covers some or all of it. If the seller covers the full amount, the buyer pays nothing out of pocket. If the seller offers less or nothing, the buyer pays the gap plus 13% HST, on top of other closing costs.
How much is a buyer agent commission in Ontario in 2027?
There is no set buyer agent commission in Ontario in 2027. The fee is whatever you and the brokerage agree in your buyer representation agreement: a flat fee, a percentage of the price, or both. RECO says the agreement must also state how your fee changes if the seller covers some or all of it.
Do I have to sign a buyer agreement with a realtor in Ontario?
If you want an Ontario agent to represent you, yes. RECO says becoming a client means signing a written representation agreement, and if you do not want to sign one you should not expect services such as showings. Its expiry date must appear on the first page, and you can negotiate the term, the scope and the fee.
What happens if the seller doesn’t pay the buyer’s agent in Ontario?
The buyer may owe their own brokerage the fee in their agreement. RECO warns that a seller might offer nothing toward the buyer’s brokerage, which can limit what the buyer can afford to offer. On a $1,125,748 Toronto semi with an example 2.5% buyer fee, that would be $31,802 including HST.
Who pays HST on real estate commission in Ontario?
The person who owes the fee pays the 13% HST on it. In Ontario, a seller pays HST on their listing brokerage’s fee and on any amount they agree to pay toward the buyer’s brokerage. A buyer pays HST on any part of their own brokerage’s fee that the seller does not cover.
Does the seller pay both agents in Ontario?
Often, but not by law. In many Ontario resales the seller pays their listing brokerage and agrees in the listing agreement to cover some or all of the buyer’s brokerage fee. RECO says that amount is the seller’s choice and could be nothing. Buyers should check what each listing offers before writing an offer.
Can I get a commission rebate from my realtor in Ontario?
An Ontario brokerage can agree to give you a rebate or incentive, but RECO’s buyer checklist says to make sure the details are documented in writing. Ask how and when it will be paid, and tell your lawyer and mortgage lender about it well before closing so they can account for it.
Is the fee lower if one agent represents the buyer and seller in Ontario?
It may be, but only if your agreement says so. RECO says multiple representation needs every client’s written consent after a written disclosure that explains any change in what each client pays. The agent then cannot advise either side on price or terms, so weigh any saving against losing that advice.
Sources
- RECO: Signing a contract with a real estate brokerage
- RECO: Buyer’s checklist
- RECO: Understanding multiple representation
- RECO: Know the risks of representing yourself
- RECO: RECO Information Guide
- Trust in Real Estate Services Act, 2002 (e-Laws), s. 36
- Canada Revenue Agency: GST/HST calculator and rates
- TRREB Market Watch, October 2026
Related reading
- Seller Closing Costs in Ontario for 2027: Every Fee Before You Get Paid
- How to Sell a House in Toronto, Step by Step (2027)
- Closing Costs on a New Build in Ontario: What Builders Add
- How Much Is My House Worth in Caledon? (2027)
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume.
Reach me at [email protected] or 833-330-1925, or book a call.
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