Are real estate commissions regulated or set by law in Ontario?

No. Commission rates in Ontario are not set or regulated by law, by RECO, or by the Toronto Regional Real Estate Board or any other board. There is no minimum or maximum commission rate that brokerages must charge. Rates are entirely a matter of negotiation between the seller and the brokerage.

Canada's Competition Bureau has historically scrutinized the real estate industry on this point and has taken action to ensure that sellers are aware they can freely negotiate commissions and are not bound by any standard rate. Any representation by an agent that the commission is "standard" or "non-negotiable" should be questioned.

This means you can and should shop around for the best combination of service and compensation before committing to a listing agent. Some sellers use flat-fee brokerages, others use full-service agents at negotiated rates, and some list only on MLS entry-level packages. Consider the services included, the agent's track record in your area, and the total commission cost — including HST — when making your decision. You have full freedom to negotiate.