What you pay

The fee is a clause in the draft, not a rate this site can look up. Realtors London Ontario will say what the clause has to show, and it will not print a percentage.

RECO's page on signing a contract is the source for the rules below. If a sentence here conflicts with the draft in your hand, refuse the draft or have it changed before you sign. Nothing here is legal advice.

Nobody else sets the amount

You and the brokerage decide the amount. RECO says it is not fixed or approved by RECO, any government authority, or any real estate association or real estate board. You can agree to a fixed dollar amount, a percentage of the sale price, or a combination. The agreement cannot specify an amount based on the difference between a property's listing price and what it sells for.

The agreement must also identify circumstances in which the amounts might change, and how they will change in each circumstance. A blank money clause is not ready to sign. A spoken number is not the clause.

What a seller's draft has to show

If you are a seller, RECO says the agreement needs to indicate the amount you agree to pay your brokerage, or how it will be calculated. It also needs the amount, if any, you agree to pay to compensate the buyer for their brokerage fees, or how that amount will be calculated. And it needs how the amounts change if you consent to multiple representation.

A seller agreement identifies the specific property. There is no standard set of services. If a service is not in the agreement, do not assume it will be provided. The listing document, from the seller's chair, is a different page from this one. This page stays with the money clause before you sign.

What a buyer's draft has to show

If you are a buyer, RECO says the agreement needs to indicate the amount you agree to pay your brokerage, or how it will be calculated. It needs how that amount changes if the seller agrees to cover some or all of your brokerage fees. It needs how the amount changes if you consent to multiple representation.

RECO's note to buyers is that a seller might not offer any amount to cover the fees you owe your brokerage. That can affect the amount you are able to offer. Depending on your finances, you may not be able to buy a property when the seller does not agree to pay those fees. This page will not say who should pay. It will say the draft has to show what happens in that case.

When it ends, and what can survive the end

The expiry date must appear prominently on the first page. RECO says there is no set time for a representation agreement. It can be a day, a few weeks, or months. The agreement should list the circumstances when it can be terminated, including any penalties or costs.

You do not have to agree to multiple representation. The agreement should be clear about what happens if you do not, including whether it ends. Under a designated representation agreement, the brokerage cannot appoint a different designated representative unless you agree.

Most agreements include a holdover clause. It may require you to pay the brokerage for a purchase or sale that happens after the agreement expires, for the period the clause states. RECO says there is no minimum or set time for that period. Its page uses 30 days as an example, not as a standard. Read the length before you sign.

RECO also says a client is responsible for paying the fees agreed, even if an agreement to buy or sell later falls through because of the client's default or neglect. Find that sentence in the draft if it is there. Do not learn it after the fact.

Read it against the other pages

The six questions are on questions to ask. The sequence is on how to choose. The points the rules require are on what the rules require. Confirm a registrant on RECO's public register yourself. This page does not look anyone up, and it does not quote a registration number.

Sending the form asks for a reply. It does not hire anyone, and it does not set a fee.

Questions on the fee