For example, if an agent has worked with a seller or a buyer for months, they don’t get paid for the time spent if there is no transaction during that period. Agents receive a commission once the transaction closes and money is transferred based on the selling price of the home. At that point, the commission is earned. The commission itself is negotiated — According to the competition bureau of Canada commission rates are negotiable between the consumer and the agent. All commission rates are established between the client and their agent however its typical the rate your agent charges will be the rate already offered to the buyer's agent built into the home prices you see online. Even though its rare, in some cases the fee your agent is charging maybe higher than what the seller is offering. In these cases, your agent can either accept the lower rate being offered or you can build the difference into the negotiations of the sale price. Agents are not allowed to accept any remuneration of any kind directly or indirectly except through the brokerage they are affiliated with. Real Estate in Canada is transparent which requires each brokerage to keep all records in case of an audit.
PAYING AGENT COMMISSIONS
The overall agent commission is paid at closing. The buyers lawyer will send the sellers lawyer the balance between the deposit and the purchase price that was agreed upon. The agent fee is then taken from the proceeds of the sale of the the property. Most buyers don't feel like they are paying any agent commissions because they are not paying their agent directly but
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