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Hi, I am selling my house, this is the first time I am doing this. I met with a real estate agent and she said I have to pay commission to the buyers agent as well as my real estate agent who will be selling the house for me.. is this correct ? I don’t understand why I would need to pay the buyers agent a commission. I live in the Toronto Area.

Thanks
My agent is charging me 2.5 percent commission and she said I have to pay another 2.5 percent to the buyers agent.

3 Thoughts on Paying commission when selling a house ?
  1. Reply
    Peggy I
    December 1, 2011 at 6:17 am

    Yes the commission pays all the expenses of advertising and promoting the house for sale. You actually pay one commission and the two real estate agents split it. Your lawyer will cut a cheque to the real estate agent out of the profits when the sale is complete.

    I suggest you get yourself a real estate lawyer now, who can answer all your questions as you go along. There will be a lot of other costs and paperwork that you will have to complete as well.

  2. Reply
    kemperk
    December 1, 2011 at 6:56 am

    LET ME clarify. NORMALLY, the listing commission is split
    between the seller’s agent and the buyer’s agent. This is
    cultural, not automatic.

    Next; the amount of commission is ALWAYS, by law, negotiable.

    AT no time is any seller [in the US, anyway] required to pay the
    buyer’s agent’s commission but it is the norm. IT is “simply”
    split–the listing commission is split 50-50 between the
    seller and buyer’s agents.

    ASK her to show you in writing, the law about you needing
    to pay an additional commission; I bet she is
    hoping that is what you will do……..instead of it being the law.

    Plz keep me informed.

  3. Reply
    realtor.sailor
    December 1, 2011 at 7:26 am

    That’s somewhat of an unusual agreement. Most listings specify the total commission to be paid and the listing agent splits it with the selling agent. Actually what you agent is proposing might save you money. Ask what the total commission would be if her office sells the home. Still 2.5%?

    realtor.sailor

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