Who pays the real estate agent commissions in Ontario?

Traditionally in Ontario, the seller pays real estate commissions for both the listing agent and the buyer's agent out of the sale proceeds, and the total commission is split between the brokerages. The commission amount is negotiated between the seller and their listing agent and is stated in the listing agreement — not in the Agreement of Purchase and Sale itself.

This model has been evolving. As of recent regulatory changes in Ontario, buyers and their agents must now sign a Buyer Representation Agreement before the buyer is shown properties, which sets out how the buyer's agent will be compensated. If the listing side is not offering a buyer's agent commission that covers what the BRA specifies, the buyer may be responsible for making up the difference.

As a buyer, you should review your Buyer Representation Agreement carefully before signing it to understand your potential commission obligations. As a seller, commission is negotiable and you should discuss it with your listing agent. Either way, a real estate lawyer does not handle commission — that is between you and your agent.