In Canada, the seller almost always pays the realtor fees associated with a home sale. When a seller lists their property, they sign a listing agreement that sets the commission rate, which is typically a percentage of the final sale price. This commission is then split between the seller’s agent (the listing agent) and the buyer’s agent, usually evenly.
Buyers do not pay realtor fees directly, and these fees do not appear in their closing costs. Instead, the realtor commissions are deducted from the seller’s sale proceeds at closing. However, buyers do contribute indirectly to these fees because they are factored into the home’s sale price — meaning the buyer effectively covers the commission cost as part of the purchase price they agree to pay.
In summary:
There are rare exceptions where buyers may pay their agent directly, but this is uncommon in the Canadian market. Commission rates and payment terms can be negotiated, but the traditional and prevailing practice remains that the seller covers realtor fees.
This model is consistent across provinces including Ontario, BC, and Alberta, though commission percentages and tax rates on commissions may vary regionally.
