Who Pays Real Estate Commission in Ontario | 2024 TRESA Rules
Who Pays Real Estate Commission in Ontario After the 2024 TRESA Rules?
The short answer: The seller still pays real estate commission in most Ontario transactions. However, under 2024 TRESA rules, buyers now sign written agreements with their agent and may need to cover a commission gap if the seller offers less than agreed. In practice, most buyers still pay nothing out of pocket.
Most buyers assume they never pay commission.
That’s mostly true — but no longer the full picture.
The 2024 TRESA changes didn’t flip who pays commission — but they changed how it’s structured and disclosed.
Reality check: Buyers usually don’t pay commission — but they now have legal responsibility for it.
Who Actually Pays Commission?
In most Ontario transactions:
- The seller pays total commission (typically 4–5% + HST)
- This is deducted from the sale price at closing
- The listing brokerage splits it with the buyer’s brokerage
From the buyer’s perspective, this means no direct out-of-pocket payment in most cases.
What Changed Under TRESA?
The 2024 updates introduced four key changes:
- Mandatory Buyer Representation Agreements (BRA)
- Clear, written commission terms
- Disclosure of commission gaps
- Defined representation types (client vs self-represented)
The goal: transparency and informed decision-making.
Reality check: Commission didn’t change — accountability did.
How Buyer Commission Works Now
The process now follows three steps:
1. Sign the Buyer Representation Agreement
This sets your agent’s commission (typically 2–2.5%).
2. Review Each Listing’s Commission
Every property offers a different amount to the buyer’s agent.
3. Handle Any Gap
If the seller offers less than your agreement, you may need to cover the difference.
Reality check: Most listings still cover full commission — but you need to verify it.
What Buyers Should Ask Before Signing a BRA
- What commission rate am I agreeing to?
- What happens if a listing offers less?
- What is the agreement length?
- What areas does it cover?
- What’s the cancellation process?
Never sign without reviewing — take at least 24 hours.
Are Sellers Offering Less Commission Now?
Sometimes.
Some listings now offer:
- 2% instead of 2.5%
- 1.5% in rare cases
This can impact:
- Buyer agent interest
- Showing activity
- Offer strength
Reality check: Saving on commission can cost more through weaker demand.
Typical Buyer Commission Today
Most Ontario listings still offer:
- 2%–2.5% to buyer agents
2.5% remains the most common structure.
What Happens If There’s a Commission Gap?
If a gap exists, three options:
- Agent reduces their fee
- Seller increases commission
- Buyer adjusts offer to cover it
These negotiations are now normal under TRESA.
Reality check: Commission gaps are manageable — but only if addressed early.
Key Takeaways
- Sellers still pay commission in most cases
- Buyers now sign agreements upfront
- Commission must be disclosed clearly
- Gaps are possible but uncommon
- Transparency is the biggest change
Frequently Asked Questions
Do I have to pay my real estate agent when buying a home in Burlington?
In most Burlington transactions, no. The seller typically pays the commission that is shared between the listing brokerage and the buyer's brokerage. However, under a Buyer Representation Agreement, you could be responsible for a commission gap if the seller offers less than the amount you agreed to with your agent.
What should I look for before signing a Buyer Representation Agreement in Ontario?
Review the commission rate, the areas covered, the length of the agreement, and how cancellation works. You should also ask what happens if a property offers less commission than the agreement requires. Taking time to understand the terms can help you avoid surprises later.
Are sellers in Hamilton and Burlington offering lower buyer-agent commissions now?
Some are, but most listings in Hamilton and Burlington still offer compensation that aligns with common buyer-agent agreements. Lower commission offerings do exist, especially in certain discount or limited-service models. Before making an offer, it's important to understand whether a commission gap could affect your purchase.
Moving Forward
The structure didn’t change — but the transparency did.
Understanding how commission works now protects you from surprises later.
If you want help reviewing a Buyer Representation Agreement or navigating commission under TRESA, book a consultation.
Disclaimer: This content is for informational purposes only and should not be considered legal, financial, or real estate advice.
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