In most Ontario sales, the seller pays their listing brokerage a negotiated fee and often covers some or all of the buyer’s brokerage fee too.
No rate is fixed — RECO states commission is not set or approved by RECO, any government authority, or any real estate association or board. If a seller offers nothing, the buyer owes their brokerage.
Who actually pays the realtor’s fee when a home sells in Ontario?
In the typical transaction, the seller does. When a home is listed, the seller signs a listing agreement with the listing brokerage that sets out the fee the seller will pay when the home sells. As part of that arrangement, the seller usually also agrees to cover some or all of the fee owed to the buyer’s brokerage. That is why so many buyers believe their agent is “free” — the cheque is written on the seller’s side of the ledger.
But I want to be honest about two things, because this is where most commission explainers go soft.
First, the money ultimately comes from the sale itself. The seller pays the fee out of the proceeds, and the proceeds come from the buyer’s purchase price. Economists can argue all day about who “really” bears the cost; in practice it is baked into the transaction that both sides are part of.
Second, the seller covering the buyer’s side is a custom, not a rule. RECO — the Real Estate Council of Ontario, the provincial regulator — cautions that a seller “might not offer any amount” toward the buyer’s brokerage fee. When that happens, the buyer owes their own brokerage directly, under the buyer representation agreement they signed. If you are buying, you need to know what that agreement says before you sign it, not after.
Is there a standard commission rate in Ontario?
No. There is no standard rate, no official rate, and no rate anyone is required to charge. RECO’s rule is stated plainly on its own website: “The amount is not fixed or approved by RECO, any government authority, or any real estate association or real estate board.”
Every brokerage sets its own fees, and every fee is negotiable between you and your brokerage. RECO confirms the fee can be structured as a flat fee, a percentage of the sale price, or a combination of the two. The one structure Ontario law prohibits is an escalating commission — an arrangement where the commission rate itself increases as the selling price rises.
You will notice I have not quoted a “typical” percentage anywhere on this page. That is deliberate. No official source publishes one, and any number I gave you would be my anecdote dressed up as a market fact. The honest answer is the accurate one: commission in Ontario is negotiable, there is no set rate, and you should ask any agent you interview to put their fee — and exactly what it buys you — in writing.
How does my buyer’s agent get paid under TRESA?
Through the buyer representation agreement you sign with their brokerage. Since the Trust in Real Estate Services Act (TRESA) framework took effect, RECO’s Information Guide — the document every agent must provide and explain before working with you — is explicit about what that agreement must do. It must be in writing. It must state the services you will receive. Its expiry date must appear on page one. And it must set out what you, the buyer, will pay your brokerage — and how that amount changes “if the seller agrees to cover some or all of your brokerage fees.”
Read that last clause again, because it is the whole game. Your agreement names a fee. If the seller’s side covers it, you may pay nothing out of pocket. If the seller’s side covers part of it, you may owe the difference. If the seller offers nothing, the full fee in your agreement is yours to pay.
Who pays what in a typical Ontario sale?
Here is the fee map as it actually works, with the caveats attached where they belong.
| Fee | Who is on the hook | Where it is set |
|---|---|---|
| Listing brokerage fee | The seller | Negotiated in the listing agreement — flat fee, percentage, or a combination. No rate is fixed or approved by RECO, government, or any board. |
| Buyer brokerage fee | The buyer, under their buyer representation agreement | Commonly covered in whole or in part by the seller — but RECO cautions a seller might not offer any amount, in which case the buyer pays their brokerage directly. |
| HST on commission | Whoever pays the fee | 13% HST applies on top of real estate commission in Ontario. |
| Escalating commission | Nobody | Prohibited in Ontario — a commission rate that rises with the selling price is not a lawful structure. |
Can I negotiate my realtor’s commission?
Yes, and you should treat the conversation as a normal part of hiring an agent. Because no authority sets the rate, the fee is whatever you and the brokerage agree to — which means the real question is not “what is the rate?” but “what am I getting for it?”
When I sit down with a seller, I put my fee on the table alongside the plan it pays for: pricing strategy, preparation, marketing, negotiation, and the parts of the file nobody sees until something goes sideways. Compare agents on both halves of that equation. A low fee attached to a thin plan can cost you far more on the sale price than it saves on commission — and a high fee is only worth paying if the plan behind it is real. Ask every agent you interview the same three questions: what is your fee, what exactly does it include, and what portion, if any, is being offered toward the buyer’s brokerage. Then get the answers in writing, because TRESA’s framework is built on exactly that kind of written clarity.
The takeaway
The seller usually writes the cheque, the buyer’s side is usually covered by the seller but does not have to be, and nothing about the amount is standard, fixed or approved by anyone — RECO says so in as many words. Negotiate the fee, understand the structure, and make sure your buyer representation agreement’s fee clause holds no surprises.
How I help
I am a licensed Realtor with RE/MAX Quantum Realty in Etobicoke, and I put my fee, my services and the buyer-side offering in writing before a client commits to anything. If you are interviewing agents, I am happy to be measured against anyone on both the number and the plan behind it.
Want a straight answer on commission for your sale?
Send me your address and a sentence about your plans. I will reply with my fee in writing, exactly what it covers, and what your net proceeds would look like at realistic price points. No pitch, no obligation.
connect@jatindua.com · 437-987-1925 · Book a free consultation
Confidential. Reviewed personally and answered within 24 hours. I never share, sell or distribute your information.
Frequently asked questions
Is there a standard real estate commission rate in Ontario?
No. RECO states that the amount is not fixed or approved by RECO, any government authority, or any real estate association or real estate board. Every brokerage sets its own fees, and the fee can be a flat fee, a percentage of the sale price, or a combination of the two.
Does the buyer ever pay their realtor directly in Ontario?
Yes, sometimes. The buyer representation agreement sets out what the buyer pays their brokerage and how that changes if the seller agrees to cover some or all of it. Sellers commonly do cover it, but RECO cautions a seller might not offer any amount — in which case the buyer owes their brokerage directly.
Can real estate commission be a flat fee in Ontario?
Yes. RECO confirms commission can be structured as a flat fee, a percentage of the sale price, or a combination of both. The only structure Ontario prohibits is an escalating commission, where the rate increases as the selling price rises.
Is HST charged on real estate commission in Ontario?
Yes. Ontario’s 13% HST applies on top of real estate commission, so sellers should budget for the negotiated fee plus 13% when estimating net proceeds.
Sources
- RECO — How real estate agents get paid. The regulator’s statement that commission is not fixed or approved by any authority, the permitted fee structures, the prohibition on escalating commissions, and the caution that a seller might not offer any amount toward the buyer’s brokerage fee. Accessed 13 August 2026.
- RECO Information Guide (PDF). TRESA’s requirements for buyer representation agreements: written form, services stated, expiry on page one, and disclosure of what the buyer pays and how it changes if the seller covers some or all of the brokerage fee. Accessed 13 August 2026.
Related reading
- The real cost of selling a house in Ontario (2026)
- What is my home worth? CMA vs appraisal vs MPAC, explained
- Closing costs when buying a home in Toronto
- How to choose a realtor in Etobicoke
About the author — Jatin Dua, Etobicoke real estate agent
I am Jatin Dua, a licensed Realtor with RE/MAX Quantum Realty, working out of 799 The Queensway in Etobicoke. I write these guides myself and verify every factual claim against the primary sources linked above — on this page, that means RECO’s own published guidance rather than industry folklore about “standard” rates.
Reach me at connect@jatindua.com or 437-987-1925.