Realtor commission in Quebec: how it's calculated
Which price the percentage applies to and when the commission becomes owed, based on the OACIQ brokerage contract.
Which price does the percentage apply to?
In Quebec, no law sets the broker's commission, and neither does the OACIQ. You negotiate it with your broker, and it goes into the brokerage contract before the listing. Most often, it's a percentage of the sale price.
That percentage applies to the price you accept, not the asking price. The OACIQ gives this example: for a home listed at $500,000 and sold for $495,000, the commission is based on $495,000.
Other formulas exist. The contract can set a fixed amount, whatever the sale price. An hourly rate or another method goes in an annex to the contract, called Annex RC.
How much do GST and QST add?
The commission is taxable. GST (5%) and QST (9.975%) are added to the agreed amount, for 14.975% more.
Worked example
On a $10,000 commission, GST comes to $500 and QST to $997.50. The total paid is $11,497.50.
This amount only shows how the taxes work. Your actual commission depends on your agreement with your broker.
Check whether the contract states the amount before or after taxes. To see what selling will cost you in total, with the seller's other costs, read how much a realtor costs in Quebec.
When does the commission become owed?
The OACIQ exclusive brokerage contract sets out four situations, in clause 7.1.
A promise to purchase is accepted
During the contract, an agreement to sell is reached and all its conditions are met. Only the deed of sale is left to sign.
You refuse a matching offer
A promise to purchase meets the sale conditions in your contract, but you turn it down.
You sell after the contract ends
Within 180 days after the contract ends, you sell to someone who showed interest in the property during the contract. This doesn't apply if you signed an exclusive contract with another broker in good faith.
You block the sale
For example, you prevent showings or can't be reached to receive an offer.
In practice, the commission is paid after the deed of sale is signed at the notary, out of the sale proceeds. If the buyer has their own broker, the seller's broker shares the remuneration with them.
Source: OACIQ, remuneration payable by the seller (exclusive brokerage contract, sale).
If you'd like, I can prepare an estimate of what you'd have left in your pocket after the sale.
Ask for an estimate →Want clarity on costs?
Before you sign anything, I'll explain my compensation and the other costs. There's no commitment.
“Clarity and transparency, from the first call.”
FAQ