Sell
What does a real estate broker cost? The straight answer
In Québec, a real estate broker's remuneration is not set by any law: it is negotiated and written into the brokerage contract. It generally falls between 4% and 6% of the sale price, plus taxes, and covers both the seller's broker and the buyer's broker. It is payable only on sale, at the notary's office.
How is a broker paid?
The broker is paid through a remuneration set out in the brokerage contract you sign with them. It can be a percentage of the sale price, a fixed amount or a combination of the two. No rate is imposed: the amount is agreed between you and your broker before the property goes on the market.
In general, the total remuneration falls between 4% and 6% of the sale price. That total pays two brokers: the listing broker, who represents the seller, and the broker who represents the buyer. That generally works out to 2% to 3% per broker.
Three points to remember:
- It is payable on sale. The remuneration is paid at the notary's office, out of the proceeds of the sale. You advance nothing during the marketing, unless otherwise agreed in the contract.
- It is taxable. GST (5%) and QST (9.975%) are added to the remuneration.
- It is generally shared. When the buyer is represented by their own broker, the seller's broker pays them a share of the remuneration. The share offered is indicated in the listing.
What does the calculation look like?
This is a sample calculation only, using a percentage in the middle of the usual range. It is not a rate: it is there to show the mechanics.
| Total remuneration (5% of $400,000), shared between the two brokers | $20,000 |
|---|---|
| GST (5%) | $1,000 |
| QST (9.975%) | $1,995 |
| Total | $22,995 |
Before signing a brokerage contract, always ask for the calculation for your property, with the net amount you would receive at different sale prices.
What about when you buy?
The remuneration of the buyer's broker is set out in the brokerage contract to purchase. In most transactions, it is paid out of the remuneration provided for in the seller's contract, through the sharing between brokers. Your contract specifies what happens if the share offered is lower than the agreed remuneration.
What are the other costs of a sale?
- The certificate of location, if it needs to be redone.
- The mortgage discharge and, depending on your loan, a prepayment penalty.
- Adjustments of municipal and school taxes, calculated by the notary as of the date of sale.
- Work or repairs agreed on before the sale or following the inspection.
The amounts vary from one file to another: your lender, your notary and your land surveyor will give you the exact figures.
Frequently asked questions
Is a broker's remuneration negotiable?
Yes. No law sets brokers' remuneration in Québec. It generally falls between 4% and 6% in total, is agreed between you and your broker and is written into the brokerage contract, before the property goes on the market.
What happens if my property does not sell?
As a general rule, no remuneration is owed if the property does not sell during the term of the contract. The brokerage contract does, however, provide for certain specific situations; we go over them with you before signing.
What does the remuneration include?
The evaluation, the preparation of the file, the listing on Centris®, the marketing, the management of showings, the negotiation of promises to purchase and the follow-up through to the deed of sale. We set out in writing what is included before you commit.
Is selling without a broker cheaper?
You save the remuneration, but you take on the pricing, the marketing, the showings, the negotiation, the forms and the tracking of conditions. The right comparison is the net amount you are left with at the end, not just the fees.