Who pays for Realtor fees?

[Aditya Bhate]

Had this question in mind and kinda cliché but still wanted to get a clear idea.

Consider someone is looking to  buy a house in Ontario, Canada. Lets say that person finds a deal.

Now, the question is who pays for the seller's realtor and the buyer's realtor:

1) Is it that the seller pays whatever commission to the seller realtor which is then split b/w the buyer's and the seller's realtor.

OR

2) Seller pays the seller's realtor and buyer pays the buyer's realtor.

****
From what info is out there on the internet, it says the buyer is not supposed to pay any realtor commission.
Is this true?

Or Is there any specific law regarding this from the provincial/federal govt.?

#Realtor #Ontario #RealEstate #Canada

[Nick Thomas]

@Aditya Bhate Great question! The seller agreed upon a commission amount with the listing agent. They also agree how much of that total commission will be offered to the buyer’s agent.

The buyers have a separate agreement with their agent saying how much commission they are obligated to pay. The buyers would only owe money if the property they purchase is offering the buyer’s agent less than the agreed upon amount.

For example-

A buyer has an agreement with an agent to pay 2.5% commission, but the property they ratify on is only offering 2% commission. The buyer’s agent could require the buyer pays them the .5% out of pocket. When I’m working with clients I make them aware of this before offering and I’m also willing to work with my buyer to make sure it’s a win-win.

Hope this helps!