Who Pays Realtor Fees in Canada? Province-by-Province Guide for Residential and Commercial Real Estate
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Written by Faiza Ahmed
Last updated on August 20, 2026
Written by Faiza Ahmed
Last updated on August 20, 2026
Who pays Realtor fees in Canada depends on the type of transaction, the province, and most importantly, the agreement signed with the brokerage. In everyday language, people often say “Realtor fees,” but the more accurate term is real estate commission, brokerage fee, or remuneration.
Across Canada, there is no government-set Realtor fee. Commission is not fixed by law. It is negotiated between the client and the brokerage, then written into a listing agreement, buyer representation agreement, tenant representation agreement, commercial listing agreement, or other service agreement.
In most residential resale transactions, the seller usually pays the total real estate commission from the sale proceeds on closing. That commission is often shared between the listing brokerage and the buyer’s brokerage. In residential lease transactions, the landlord usually pays the leasing commission, especially when the rental is listed through organized real estate systems.
Commercial real estate is more flexible. In commercial sales, the seller often pays the commission, but the buyer may be responsible if their own representation agreement says so. In commercial leases, the landlord often pays, but commissions may be based on the total lease value, annual rent, net rent, square footage, or another negotiated formula.
The simple answer is this:
For residential sales, the seller usually pays.
For residential leases, the landlord usually pays.
For commercial sales, the seller usually pays, but the contract controls.
For commercial leases, the landlord usually pays, but the contract controls.
The detailed answer changes by province and by agreement.
In Ontario residential sales, the seller usually pays Realtor fees. The commission is normally agreed to in the listing agreement and paid from the seller’s proceeds on closing. If there is a buyer agent involved, the listing brokerage may share part of the commission with the buyer’s brokerage, depending on the listing terms and the offer.
For buyers, this means they usually do not pay their agent separately out of pocket in a typical MLS resale purchase. However, buyers should always review their buyer representation agreement. If the agreement says the buyer owes a certain fee and the seller does not cover it fully, the buyer may be responsible for the shortfall.
For residential leases in Ontario, the landlord usually pays the Realtor commission. In many MLS rental transactions, the total commission is commonly based on one month’s rent plus HST, then split between the landlord’s brokerage and the tenant’s brokerage. The exact amount can vary.
A tenant should not assume they owe a Realtor fee unless they signed a tenant representation agreement that clearly says they are responsible for payment.
In Ontario commercial sales, the seller usually pays the real estate commission, but commercial deals are more contract-driven than residential deals. The commission may be a percentage of the sale price, a fixed amount, or another negotiated structure.
In Ontario commercial leases, the landlord often pays the leasing commission. However, commercial lease commissions are usually not as simple as one month’s rent. They may be calculated based on the total rent over the lease term, the net rent, the first few years of rent, the square footage, or a negotiated fee schedule.
Commercial buyers and tenants should read their representation agreements carefully. If the seller or landlord does not agree to pay the fee, the buyer or tenant may be responsible depending on what they signed.
In British Columbia residential sales, the seller usually pays the commission through the listing agreement. The commission may then be shared with the buyer’s brokerage if the listing offers cooperating remuneration.
BC is known for using different commission structures depending on the market. Some transactions use a percentage of the sale price, while others use tiered formulas or negotiated fees. The important point is that there is no required province-wide commission rate.
For buyers, the seller often indirectly covers the buyer brokerage fee through the listing arrangement. However, if a buyer has signed a buyer agency agreement, they should check whether they are responsible if the seller offers reduced commission or no commission.
In residential leases, the landlord usually pays the leasing commission when a rental is listed through a brokerage, but the amount can vary by local market and agreement.
In BC commercial sales, the seller usually pays the commission, but the structure is negotiable. Commercial properties may involve office, retail, industrial, multi-family, land, mixed-use, or business-related real estate, and each category may use different fee arrangements.
In BC commercial leases, the landlord often pays the leasing commission. It may be calculated as a percentage of the total lease value, a dollar amount per square foot, or another formula negotiated in the commercial listing agreement.
Tenants should not assume the landlord will automatically cover their representative’s fee. The tenant representation agreement should explain who pays and what happens if the landlord does not pay.
In Alberta residential sales, the seller usually pays Realtor fees from the sale proceeds. The listing agreement sets out what the seller agrees to pay and how the commission may be shared with the buyer’s brokerage.
Alberta is one of the provinces where tiered commission structures are commonly discussed in the market, but that does not mean the fee is fixed. The seller and brokerage can negotiate the fee structure before signing.
For buyers, the buyer’s brokerage fee is often covered through the seller-paid commission arrangement. However, if the buyer representation agreement sets a fee and the seller does not cover it fully, the buyer may be responsible for the difference.
For residential leases, landlords usually pay the leasing commission when the property is listed through a brokerage. The amount can vary based on the rental market, property type, and brokerage agreement.
In Alberta commercial sales, the seller often pays the commission, but commercial deals are very agreement-specific. Fees may be based on a percentage of the sale price or a custom fee schedule.
In commercial leases, the landlord often pays the leasing commission. The commission may be based on the total lease value over the term, the annual base rent, or a negotiated formula. For longer commercial leases, the fee can be much larger than a residential lease commission because it is tied to the value of the lease contract.
Commercial tenants should review whether their brokerage expects payment from the landlord, from the tenant, or from both depending on the final lease terms.
In Saskatchewan residential sales, the seller usually pays the Realtor commission through the listing agreement. The commission is typically deducted from the seller’s proceeds when the sale closes.
If a buyer has their own agent, the buyer’s brokerage may be paid through a cooperating commission offered by the listing brokerage. However, the buyer should still read their buyer representation agreement to understand whether they could owe any shortfall.
In residential lease transactions, the landlord usually pays the leasing commission if the property is listed with a brokerage. The exact fee depends on the brokerage agreement and local market practice.
In Saskatchewan commercial sales, the seller often pays the commission, but the contract controls. A commercial seller may agree to a percentage-based commission, a flat fee, or a more customized arrangement.
In commercial leasing, the landlord often pays the commission, especially when the landlord has listed the space with a commercial brokerage. The fee may be based on net rent, gross rent, square footage, lease term, or another negotiated calculation.
Tenants should check their agreement before assuming there is no fee payable by them.
In Manitoba residential sales, the seller usually pays Realtor fees. The fee is agreed to in the listing agreement and paid from the seller’s proceeds on closing.
The buyer’s brokerage may be paid through the seller-paid commission structure. However, as in other provinces, buyers should review their buyer representation agreement. If the agreement says the buyer owes a specific amount and the seller-paid amount is lower, the buyer could be responsible for the difference.
For residential leases, landlords usually pay the leasing commission when a property is listed through a brokerage. The fee may be a portion of rent, one month’s rent, or another negotiated amount depending on the agreement.
In Manitoba commercial sales, the seller often pays the commission, but commercial transactions are heavily driven by the signed agreement. The commission may be a percentage of the sale price or another negotiated structure.
In commercial leases, the landlord usually pays the leasing commission, but this is not guaranteed. Commercial lease commissions may be calculated based on lease term, total rent, net rent, or a fixed fee.
Commercial tenants should confirm in writing whether their representative is being paid by the landlord or whether the tenant has any direct payment obligation.
In Quebec residential sales, the seller usually pays compensation through the brokerage contract to sell. The seller’s broker or agency may then share part of that compensation with the buyer’s broker.
Quebec is important because buyer brokerage contracts can clearly address buyer-side remuneration. If the buyer’s contract says the buyer’s broker is entitled to a certain amount, and the amount shared by the seller’s broker is lower, the buyer may have to pay the difference, depending on the contract.
For example, if the buyer’s brokerage contract provides for a 2.5% fee and the seller’s broker only shares 2%, the buyer may owe the remaining 0.5%, if that is what the agreement provides.
For residential leases, the landlord usually pays the leasing commission when the rental is listed by a broker. However, if a tenant signs a contract with their own broker, the tenant should review whether they have any payment obligation.
In Quebec commercial sales, the seller often pays the broker’s compensation, but commercial brokerage arrangements can vary widely. The fee may be a percentage, fixed amount, hourly rate, or a combination.
In commercial leases, the landlord often pays the commission, but tenants may also enter into mandates with their own commercial broker. A tenant should confirm whether the broker is paid by the landlord, by the tenant, or through another arrangement.
Commercial real estate in Quebec may also involve GST and QST considerations, especially for commercial property sales and leases.
In New Brunswick residential sales, the seller usually pays the Realtor commission. The commission is normally paid from the sale proceeds and may be split between the seller’s agent and the buyer’s agent.
For buyers, this usually means they do not need to budget for a separate agent fee in a typical resale purchase. However, buyers should still review any buyer representation agreement before signing.
For residential leases, the landlord usually pays the leasing commission if a brokerage is involved. The exact amount depends on the listing agreement or rental service agreement.
In New Brunswick commercial sales, the seller often pays the commission, but the arrangement should be confirmed in writing. Commercial real estate commission may be percentage-based or negotiated as a fixed fee.
In commercial leases, the landlord often pays the leasing commission. However, because commercial leases can vary greatly, the commission may be based on the total lease value, annual rent, square footage, or another formula.
A commercial tenant should review the tenant representation agreement carefully before assuming that the landlord is covering all brokerage fees.
In Nova Scotia residential sales, the seller usually pays the commission through the seller brokerage agreement. There is no guaranteed standard rate, and the fee should be clearly set out in the agreement between the seller and the brokerage.
The buyer’s brokerage may be compensated through the listing brokerage, but buyers should still review their own agreement to understand whether they could owe anything directly.
In residential lease transactions, the landlord usually pays the Realtor fee when the rental is listed through a brokerage. The payment terms should be set out in the rental listing or service agreement.
In Nova Scotia commercial sales, the seller usually pays, but the fee is negotiable. Commercial commission can be structured differently depending on the asset type and deal size.
In commercial leases, landlords often pay the commission, but commercial leasing fees can be negotiated in several ways. The fee may be based on base rent, net rent, gross rent, lease term, or a fixed amount.
Commercial tenants should always confirm whether their broker is being paid by the landlord or whether the tenant has agreed to pay directly.
In Prince Edward Island residential sales, the seller usually pays Realtor fees. The commission is agreed to in the listing agreement and deducted from the seller’s proceeds on closing.
The buyer’s agent may be paid through the seller-paid commission arrangement. However, buyers should check their buyer representation agreement to understand whether they owe anything if the seller offers less than expected.
For residential leases, the landlord usually pays the leasing commission when a brokerage is involved. The exact amount depends on the agreement and local market practice.
In PEI commercial sales, the seller often pays the commission, but the exact fee and payment structure are negotiable.
In commercial leases, the landlord often pays the leasing commission. Since commercial properties in PEI can include small retail, office, mixed-use, industrial, land, and hospitality properties, the commission formula may vary based on the property and lease structure.
Tenants should confirm in writing whether they have any responsibility for brokerage fees.
In Newfoundland and Labrador residential sales, the seller usually pays Realtor fees through the listing agreement. The commission is generally paid from the seller’s proceeds when the transaction closes.
The buyer’s brokerage may be paid through the commission offered by the listing side. However, the buyer should review their representation agreement to understand whether they could owe a fee if the seller does not cover it.
For residential leases, the landlord usually pays the leasing commission if the property is listed through a brokerage. The amount can vary depending on the rental agreement and brokerage terms.
In Newfoundland and Labrador commercial sales, the seller often pays the commission, but commercial fees are not one-size-fits-all. The fee may be negotiated as a percentage, flat amount, or another arrangement.
In commercial leases, the landlord often pays the leasing commission. The fee may be based on lease value, annual rent, square footage, or a customized formula.
Commercial tenants should review their representation agreement carefully, especially if they are leasing office, retail, warehouse, restaurant, or industrial space.
Residential sales and residential leases are often confused, but the commission structure is different.
In a residential sale, the seller usually pays a percentage of the sale price. That fee is paid only when the sale closes, unless the agreement says otherwise.
In a residential lease, the landlord usually pays a leasing commission. In many urban rental markets, that fee is often connected to one month’s rent or a portion of the annual rent. The commission is usually paid after the lease is accepted, signed, and the deposit is delivered, but the exact timing depends on the brokerage agreement.
Tenants should not assume they owe Realtor fees unless they signed an agreement saying so.
Commercial sales and commercial leases are much more flexible than residential transactions.
In a commercial sale, the commission may be based on the sale price. The seller often pays, but a buyer may have a separate agreement with their own brokerage.
In a commercial lease, the commission may be based on the value of the lease over time. For example, a five-year lease can create a commission based on several years of rent, not just the first month.
Commercial lease commission may be calculated using:
A percentage of total lease value
A percentage of net rent
A percentage of gross rent
A dollar amount per square foot
A fixed fee
A stepped formula by lease year
An agreed fee in a tenant representation agreement
Because commercial leases can involve renewal options, free rent periods, tenant inducements, build-out allowances, and different rent types, the fee should always be confirmed in writing.
Many people say the seller pays Realtor fees, but the buyer indirectly pays because the commission is built into the sale price.
Practically, the seller pays the commission from the sale proceeds. Economically, buyers may feel the cost through the purchase price because sellers consider total selling costs when deciding what price they are willing to accept.
So both statements can be true:
Legally and contractually, the seller usually pays the commission in a residential sale.
Economically, the buyer may indirectly contribute through the purchase price.
The signed agreement determines the legal payment obligation.
Yes, real estate commission is generally subject to applicable tax. Depending on the province, that may be GST, HST, or GST plus QST in Quebec.
This tax applies to the commission fee, not necessarily to the full sale price of a resale residential home.
Commercial real estate can involve more tax complexity. Commercial property sales and commercial leases may have GST/HST or QST implications depending on the property, the parties, and registration status. Buyers, sellers, landlords, and tenants should speak with an accountant or real estate lawyer before finalizing a commercial deal.
Across Canada, the general rule is:
In residential sales, the seller usually pays Realtor fees.
In residential leases, the landlord usually pays Realtor fees.
In commercial sales, the seller often pays, but the agreement controls.
In commercial leases, the landlord often pays, but the agreement controls.
The most important thing is not the province alone. The most important thing is the written agreement.
Before signing, sellers, buyers, landlords, and tenants should ask:
How much is the commission?
Who pays it?
Is tax extra?
When is it due?
Is the other side covering any part of it?
What happens if the other side does not pay enough?
Is there any shortfall payable by the client?
That is the safest way to understand who pays Realtor fees in Canada.
About the author:
Faiza Ahmed
As the founder of PropertyMesh, Faiza Ahmed is dedicated to making real estate more transparent and cost-effective. While she advocates for more transparent, flexible fee structures so sellers can keep more of their equity, her core focus is empowering buyers and sellers to make informed decisions. Faiza is a licensed real estate broker registered with the Real Estate Council of Ontario (RECO Registration #4791581) and an active member of the Toronto Regional Real Estate Board (TRREB).
| Transaction Type | Who Usually Pays? | Transaction Type Who Usually Pays? Practical Explanation |
|---|---|---|
| Residential sale | Seller | The seller usually pays commission from the sale proceeds on closing. It may be shared between the listing brokerage and buyer’s brokerage. |
| Residential lease | Landlord | The landlord usually pays the leasing commission, often from the first month’s rent or landlord funds. |
| Commercial sale | Seller | Commercial sale Seller The seller often pays, but the buyer may pay their own brokerage depending on the agreement. |
| Commercial lease | Landlord | The landlord often pays, but commercial lease |