Ways to buy and sell a home in Canada: who does what and what it costs
Compare full-service, reduced-commission, flat-fee and private sales, and the ways a buyer's brokerage gets paid.
This table compares ways of selling and buying, not individual companies. Commission in Canada is negotiable: no law sets a standard rate, and the figures you are quoted depend on the brokerage, the market and the services included. Read across each row for how the option works, who it suits and the trap to watch for. For the arithmetic, use the commission calculator and the worked examples in full service, flat fee or private sale.
Select a column header to sort.
| Option | How it works | Good for | Watch out for |
|---|---|---|---|
| Full-service listing | Listing brokerage markets the home, lists it on the MLS system, handles showings and negotiation; commission is a percentage of the sale price, part of which may be offered to the buyer's brokerage | Sellers who want pricing advice, marketing and negotiation handled for them | GST/HST is added to the commission; check the holdover clause and how long the agreement runs |
| Reduced or tiered commission | Same model at a lower or tiered rate, for example a higher percentage on the first part of the price and a lower one on the rest | Higher-priced homes where a flat percentage produces a large fee | Ask what services are cut and whether the buyer-side offer is lower, which can reduce showings |
| Flat-fee MLS listing | You pay a fixed fee to have a brokerage put the home on the MLS system; you do showings and negotiation yourself | Confident sellers in active markets who can price and negotiate | You usually still offer a commission to buyer's brokerages; extra services cost extra |
| Private sale (FSBO) | No listing brokerage; you advertise, show and negotiate yourself and hire a lawyer or notary for the paperwork | Sales to a buyer you already know, or very strong markets | Pricing errors and weak contract terms cost more than the commission saved; in Quebec, use a notary early |
| Buyer's brokerage paid from the seller's commission | Listing brokerage shares part of the seller's commission with the buyer's brokerage, as shown on the listing | Most buyers in a conventional MLS sale | The buyer agreement may say you pay the difference if the offered amount is lower than what you agreed |
| Buyer pays own brokerage directly | Buyer agrees a fee in the buyer representation agreement and pays it, or it is credited against what the seller offers | Buyers of private sales or flat-fee listings with no buyer-side offer | Budget the fee plus GST/HST in cash; it cannot normally be added to the mortgage |
| Lawyer for closing (outside Quebec) | Real estate lawyer handles title search, mortgage, transfer registration and funds | Every buyer and seller in common-law provinces | Get a quote that separates fees, disbursements and title insurance |
| Notary (Quebec) | Notary prepares and registers the deed of sale and the hypothec, and holds funds in trust | Required in practice for every Quebec purchase | The buyer usually chooses and pays the notary; the welcome tax bill comes later from the municipality |
Commission figures are negotiated and change with the market, so this site does not publish an "average" rate. Brokerages and realtors are licensed by provincial regulators: RECO (Ontario), BCFSA (British Columbia), OACIQ (Quebec), RECA (Alberta) and others listed in complaints and regulators by province. Check a licence on the regulator's public register before signing.