Listing with Realtors

[Mike Milovick]

QUOTE (neill @ Oct 23 2009, 11:17 PM) In AB standard practice is 7% of the first 100k of sale price + 3% of the remainder, split between the listing and selling realtor.

This arrangement is not permitted in Ontario. Its either flat rate or percentage. Not tiered.

Mike

 

[neill]

QUOTE (MikeMilovick @ Oct 29 2009, 04:26 PM) This arrangement is not permitted in Ontario. Its either flat rate or percentage. Not tiered.

Mike

Hi Mike - thanks for the note - out of curiosity, what is the standard percentage rate?

 

[housingrental]

5% is standard in Ontario for residential properties
2.5% to listing agent and 2.5% to buyer agent
In some northern(smaller) markets with very low house prices I`ve seen ones that indicate higher (like 6-7%, etc..) but rare


QUOTE (neill @ Oct 30 2009, 12:26 AM) Hi Mike - thanks for the note - out of curiosity, what is the standard percentage rate?

 

[JohnSoucie]

QUOTE (MikeMilovick @ Oct 29 2009, 05:26 PM) This arrangement is not permitted in Ontario. Its either flat rate or percentage. Not tiered.
Mike

Just as way of clarification/understanding on your statement, in our course I thought Ron mentioned that any percentages or arrangements are always negotiable and that even though an agent(and the contract) says the percentages are such and such, what is actually meant is it`s "customary" to receive such and such. The idea being, just becausee it`s "printed" into the buyers/sellers agreement doesn`t mean that the numbers can`t be stroked out and new numbers or tiered arrangements can`t be written in and agreed upon.. It`s a contract and as long as both parties agree.....

I don`t profess to know anything about this stuff but it was my simple understanding of what he said(and I thought Greg Habstritt had made similar suggestions) but your statement "This arrangement is not permitted in Ontario." makes it sound like it`s illegal. Not permitted by who?

Thanks for any clarifications you can make.
John Soucie

 

[WJW]

QUOTE (JohnSoucie @ Nov 2 2009, 01:37 PM) I don`t profess to know anything about this stuff but it was my simple understanding of what he said(and I thought Greg Habstritt had made similar suggestions) but your statement "This arrangement is not permitted in Ontario." makes it sound like it`s illegal. Not permitted by who?

Thanks for any clarifications you can make.
John Soucie


Hey John,

It is illegal in Ontario to have two types of commissions structures.

Commissions in Ontario must be a fixed amount or percentage and is legislated law according to REBBA 2002 (Real Estate and Business Brokers Act). The following is from the REBBA online guide which provides regulations for realtors in Ontario.

Commission Calculation/Amount
REBBA, Sec. 36
CODE, Sec. 9

Commission or other remuneration must be an agreed amount or percentage of sale price/rental price, but not both. If no amount is agreed upon, the prevailing rate in the community prevails.
Registrants must not indicate directly or indirectly that commissions are fixed or approved by administrative or government authorities, real estate boards or real estate association.

 

[JohnSoucie]

QUOTE (WJW @ Nov 2 2009, 10:09 PM) Hey John,

It is illegal in Ontario to have two types of commissions structures.

Thanks so much for the clarification. I am learning that you really do have to question everything Ron says, simply because...first I might have misunderstood him and second, he seems to have a good idea about Canada, but he really doesn`t know everything for sure. He just might think he does

On a similar note, I came across his warning about checking with your lawyer about the legality of using options in your area.....So in Ontario is there anything that is stopping me from optioning a home?

John